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  1. #26
    Join Date
    Oct 2004
    Location
    USA
    Posts
    834
    When i tried to open a 2nd business acct with paypal. I had to do it to lift a restriction and fully verify PayPal, and PP told me it was required.
    VT BankCard
    Payment Processing Solutions and Merchant Services
    Specializing in WebHosting and High Risk Merchants.

  2. #27
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    They want it first to report the income to the United States government (the government likes their share). But the number is used for a lot more reports as well as mentioned before - the Patriot Act, your credit report, etc.

  3. #28
    Join Date
    Jul 2005
    Location
    Maine, US
    Posts
    521
    So how does it benfit us giving them our ssn? They dont require it for my account. I have a verified business account. My $500 withdrawal limit is also lifted so what reason should I give them my ssn if I have everything I am looking for out of my paypal account.

  4. #29
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    If PayPal does not require you to give them a SSN, then you have no reason to give it to them. As stated above, there are numerous reasons for PayPal to ask for your SSN. And as long as you are on PayPal's website (and not a phishing website) it is OK to enter your SSN.

    And then consider Google - most citizens of the United States gave Google their SSN when they signed up for an adwords account. And then a couple of weeks ago (if those people earned a certain amount), they received a W2 (or 1099). This W2 is then used when you do your Federal Income Tax. It is reportable / taxable income. The United States government wants their share (unfortunately) - we would like a plaque on a tank or maybe a missile or something ($70,000 alone should have at least bought a few hammers).

    I have to disagree of course about not entering the SSN on a website. If the government deemed it inappropriate for a website to ask for a SSN, they would somehow make it a law and the companies based in the United States would then need to comply.

    But for now hostatree it seems you don't need to worry about.

  5. #30

    Question

    The problem with not giving paypal your SSN is that you're limited to a $500 monthly withdrawal limit. In order to lift the limit, you have to submit your SSN.

    This is a real problem for me because I have a large balance and will never be able to withdraw everything unless I make some very large purchases. Does giving your SSN mean that Uncle Sam will get access to all your transactions?

  6. #31
    It is done so that your income can be reported to the IRS. After next year refusal to give your SSN will either get the account shut down or have taxes automatically withheld. And it won't just be PayPal, it will affect all merchant accounts in the US.

    Chris Dodd snuck the provision into the housing bill last year.

    http://www.contrarianprofits.com/art...sing-bill/4158

  7. #32
    Quote Originally Posted by page-zone View Post
    It is done so that your income can be reported to the IRS. After next year refusal to give your SSN will either get the account shut down or have taxes automatically withheld. And it won't just be PayPal, it will affect all merchant accounts in the US.

    Chris Dodd snuck the provision into the housing bill last year.

    .../articles/how-your-online-business-will-be-affected-by-the-housing-bill/4158
    Wow no kidding huh! Pretty disgusting! So when I resell my $400 lawn mower for $100, I'll have gotten taxed not only on the original $400 purchase but also on the $100 I dumped it for??

  8. #33
    The law states that it will only affect sales of over 20,000 per year, or 200 transactions, whichever is first.

    I wouldn't trust Paypal not to report it all though. Mainly because they don't know in advance if you will meet the threshold by the end of the year.

  9. #34

    Unhappy why Paypal doesn't accept Tax ID Number ID if Patritic Act does !

    I am seller on eBay and over 2 years since I use my paypal account and collected more than $ 100 cashback within 6 months because I used my card for almost everything, one day I notice a fraudulent transaction and I reported (were stupid 25 dollars now I regret) they canceled my card, and now I can not get a new one for not having SSN and IRS ITIN is not accepted. I really would like to take legal action on this as it is unfair, I have a good record with paypal since 2005 the detail does not seem right, now I am suffering with limited transfers and checks shipments slow. We must find a way to get accepted ITIN in the paypal account debit.. Somebody told me talk to paypal legal department about this issue.

  10. #35
    Join Date
    Jan 2010
    Location
    Chicago
    Posts
    12
    Quote Originally Posted by page-zone View Post
    It is done so that your income can be reported to the IRS. After next year refusal to give your SSN will either get the account shut down or have taxes automatically withheld. And it won't just be PayPal, it will affect all merchant accounts in the US.

    Chris Dodd snuck the provision into the housing bill last year.

    http://www.contrarianprofits.com/art...sing-bill/4158
    So this could effect web hosting companies too! Hosting plans are already really low, if you use paypal you pay a fee, and if you are just starting up and have no idea about taxes it seems like it could really run you over down the road.

    I hope I'm wrong about that!

  11. #36

    Angry

    Quote Originally Posted by Ron View Post
    What can PayPal find out about you if you give them your SSN and why do they want it?
    huh? -

    I had to sign up to talk on here...

    I didnt give paypal my SSN. It automatically knows my SSN by linking my bank acct-debit card. Go through the initial sign up process and you will see there's no request for SSN info. I guess- I tried to lift the $500 limit and it asks me for the last 4 digits of my SSN. Thats SCARY- I am leaving paypal - ebay cuz they got my SSN !

    Paypal should be SUED - for violations regarding SSNs !!! -
    Last edited by jakewarcat; 03-01-2010 at 10:35 AM.

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