UPDATE
By PayPal and Staff Reporters
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NOTE: Information provided by PayPal is not intended to be and should not be construed as tax advice. For questions about your specific tax situation, please consult a tax professional.
Payment processors, including PayPal, are required to provide information to the US Internal Revenue Service (IRS) about customers who receive payments for the sale of goods and services above the reporting threshold in a calendar year.
Will I have to pay taxes when sending and receiving money on PayPal – what exactly is changing?
The Internal Revenue Service (IRS) announced transitional reporting requirements for payments received for goods and services. These requirements will lower the Form 1099-K reporting threshold over a 3-year period from the previous threshold of more than $20,000 in goods and services transactions and more than 200 goods and services transactions in a calendar year. We’ve summarized the IRS thresholds for Form 1099-K below.
MORE HERE: https://www.paypal.com/us/cshelp/article/will-paypal-report-my-sales-to-the-irs-help543
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