PayPal to give seller details to taxman

by Sue Bailey

The PayPal Blog notes that new legislation in the US will require PayPal to hand over sellers’ details to the IRS. US PayPal users who annually receive more than $20,000 in total, and more than 200 seperate payments, will have their details passed to the taxman. PayPal are keen to emphasise that the legislation does not come into effect until 2011, so the first details will not be handed over until 2012.

Last year, eBay Canada was compelled to hand over records relating to Canadian PowerSellers to the Canada Revenue Agency, and eBay Australia gave information on their top sellers to the Australian Taxation Office. With the UK taxman already spidering auctions, it can only be a matter of time before HMRC ask for British sellers’ records, so the advice remains contact them before they contact you.

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Author: Sue Bailey
Posted at: Thursday, August 7th, 2008 at 7:30 pm
Filed Under News
 

Comments

8 Responses to “PayPal to give seller details to taxman”

  1. Whirly on August 7th, 2008 7:49 pm

    The sooner it arrives in the UK the better IMO.

  2. Kiss-and-Make-up on August 7th, 2008 7:52 pm

    I agree, I have no worries about the HMRC getting proof that my sales are as bad as I say they are :)

  3. northumbrian on August 7th, 2008 8:18 pm

    the taxman does not need ebays sellers records they have enough to chase after now they cant cope with their work load as it is
    its just a frightener
    and anyone who is self employed and says they pay all the tax they should, is suffering self delusion

  4. freddy on August 7th, 2008 10:01 pm

    no worries we will all be bankrupt , by the time the taxman in uk pulls his finger out

  5. ebuyerfb on August 7th, 2008 10:28 pm

    It is about time this happened.

  6. Andrew Minalto on August 8th, 2008 6:26 am

    Can’t see nothing wrong with that - at last, legit businesses will gain something from the whole process. But I also do not believe HMRC will take this to masses when same happens in the UK. They don’t have the resources to check hundreds of thousands of accounts.

  7. Mark Classic on August 8th, 2008 8:36 am

    #3

    We do…

    Mark

  8. Ezsellingtips on August 10th, 2008 2:34 am

    Doesn’t effect me for now.

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