Freelancer? Small (or large) online business? Ministry that uses PayPal for online giving? You need to make sure you’re in compliance with the new IRS 6050W Law that’s being put into effect next year!
Essentially if you’re making over $20,000 in transactions and over 200 or more payments in a single year then PayPal will be reporting this to the IRS.
Are non-profits affected? YES:
Non-profits are treated the same as for-profits. Non-profits will be required to submit their SSN/TIN/EIN as well. Non-profit merchants will need to work with their tax professional to determine how they will need to file their taxes going forward, if they aren’t already.
So don’t forget!
Make sure you read up on this here for all the information.
I know that I’m definitely going to be getting pinged by this come 2012. *sigh* Render unto Caesar that which is…