Paypal And The IRS


The IRS now requires companies like Paypal to submit tax i.d. numbers when one exceeds $20,000 and 200 transactions in any given year.  I don't have a problem with that IF I exceed those limits, but Paypal claimed that they want to be "pro-active" and get my number in advance ... just in case I hit those marks.
Since I've never reached those numbers in my previous eleven years with them, I just ignored their requests.  But in December when I hit $19,000, they "limited" my Paypal account, effectively preventing me from listing on ebay.  I told them, I'd relay the number IF I hit $20,000, but I didn't plan to do that.  I don't really have a problem with the IRS getting my number because I report all those earnings anyhow.  However, in these days of large scale hacking, I didn't want my number floating around in another system if it didn't need to be there.
With the start of a new year, Paypal still refuses to remove the limitation on my account, which means that I still can't list on ebay. Now I'm investigating getting a "Merchant's Account" so that I can take credit cards instead.  This should enable me to still list, but cut Paypal out of the loop completely.  I'd sure like to know how many other customers their inflexible policy has cost them.  When I tried to work my way up the telephone food chain, I was told that the person who made this policy, "doesn't take phone calls!"  Why they wouldn't just remove the Paypal account limits until customers might get to $19,000 annually is beyond me.  But it's certainly reflective of the lack of customer appreciation that some say is characteristic of Paypal.

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