Paypal Can Haz Taxes?

[FromUndaCheese]

I helped my uncle Rico throw up a website that sells eBooks on how he makes BBQ smokers for under $10 in parts at Home Depot. He does $127,000 in 2010 all via Paypal. He uses his Paypal debit card for all purchases including bills and mortgage payment.

Question- Since Paypal does not report monies to the IRS, can my Uncle Rico pocket and spend all $127,000 without the IRS knowing about it?

 

[eliquid]

whoever said they didnt, you havent been keeping up on the latest news have you?

 

[Rexibit]

Paypal has to report the money they made off your Uncle through processing fees. Of course the IRS will know about his money.

Just because it's not going into his personal bank account doesn't mean he doesn't have to claim it. It's money earned over the minimum tax bracket that doesn't have to report earnings, he has to pay taxes.

 

[roclafamilia]

whoever said they didnt, you havent been keeping up on the latest news have you?

Starting in 2011, all U.S. payment providers including PayPal will be required by the Internal Revenue Service (IRS) to report sales information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. We want to help you understand these changes.

• Applies to sellers receiving over $20,000 in gross payment volume AND over 200 payments
• Applies only for sales on or after January 1, 2011

This only started this year...


With that said...yes he does have to pay taxes and if he doesn't I would expect an extremely high chance of an audit.

 

[jeffrey]

whoever said they didnt, you havent been keeping up on the latest news have you?

THIS.

 

[(O_o)]

Paypal ATM/debit cards are owned and issued thru MasterCard.

So do you really think Paypal money is not reported to the US IRS ?

lol

 

[eliquid]

This only started this year...


With that said...yes he does have to pay taxes and if he doesn't I would expect an extremely high chance of an audit.

That just says required to, doesnt mean they havent been providing it already in other ways.

 

[DrewClement]

 

[kingfish]

rofl

thisthreadagain.jpg

not if he's a tax objector

 

[Hurr-Durr]

lol.

step 1. evade taxes.
step 2. get caught by IRS in an audit.
step 3. get fucked by IRS in the form of fines, interest and possibly prison time
step 4. ????
step 5. whine about how cruel IRS is.

 

[Chianti]

> I helped my uncle Rico throw up a website that sells eBooks on how he makes
> BBQ smokers for under $10 in parts at Home Depot. He does $127,000 in 2010

I'd be interested in buying your uncle's ebook.
Please PM a link, because I can't find any designs that cheap using Google search.

Thanks.

 

[amateursurgeon]

Uncle RICO ?

Uncle OTIO, more like.

 

[jabbering99]

Uncle RICO ?

Uncle OTIO, more like.

Uncle Tito, more like it!

As the ancient Hawiians used to say.... Never forget to pay your bills on time!

 

[megatabbers]

$127,000 you say? Thanks for handing me a new niche

 

[stmadeveloper]

Just to out the niche totally

Trash Can w/ lid: $12.00
Electric Hot Plate: $13.00
Grating: $10.00
Wood Chip Box: $10.00
Temperature Gauge: $9.00

 

[amanda11]

nigga your uncle is going to get buttseckz from the IRS

 

[jabbering99]

$127,000 you say? Thanks for handing me a new niche

lets be srs, he meant 27k.

 

[ii silver ii]

Anyone earning above the minimum allowed personal income has to pay taxes .. Could always move to Monaco

 

[avatar33]

The only ones that can get away with something like this are Non-US residents, since PayPal only reports to the US gov.

 

[megatabbers]

lets be srs, he meant 27k.

You obviously don't know much about the eBook business.