Paypal and the irs

I’m moving from eBay to Bonanza. When I was selling on eBay, PayPal would report to the IRS if I had $20,000.00 or more in sales at the end of the year.
I have two questions: 1) Does PayPal do the same with sellers on Bonanza (report $20,000.00 or more in sales to the IRS at the end of the year)?
2) In my case, would PayPal add my eBay sales AND Bonanza sales together at the end of the year and, if the two sites combined total $20,000.00 or more, would PayPal report that to the IRS?

asked about 2 months ago

1 Comment

EduardoS503 says: August 04, 2020

Yes

4 Answers

Even without them reporting, it would be very wise to file for your taxes. I rarely owe anything on my business income after deductions, but if they ever ask “Where were these transfers to your bank from?” I have my tax returns accurate.

answered about 2 months ago

It is a requirement for PP/stripe/AmPay or any other payment processor to report $20,000 and 200 sales does not matter where you sell (and if your total sales through PP are greater than $20,000 and 200 sales then yes you will get the 1099. It is cumulative of all sites/sales).

Bonanza has no control over that

answered about 2 months ago

So, TrinketBox, I think you are saying that PayPal WILL report both my sales from eBay AND my sales from Bonanza if TOGETHER they total $20,000.00 or more at the end of this year, right? If so, I might as well stay with eBay, shouldn’t I?

answered about 2 months ago

2 Comments

TrinketBox says: August 04, 2020

Doesn’t matter where you sell but yes PP has to report it,…but you can use Stripe here as well as paypal (instead of?), so all the sales will not be in paypal

tomwayne1 says: August 04, 2020

The IRS reporting requirement is done by the entity that COLLECTS your payments from buyers. Theoretically, if you had a second email address (for a Spouse maybe), then that would be two different accounts.

Not knowing for sure (Never ever even probably got beyond 1K sales per year EVER) but I would think Paypal puts sales all together in a year no matter where you sell. That would be the Logical thing (but what do I know as Logic is out the window in today’s crazy PC society now).

answered about 2 months ago

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