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…
Eric Dye says
This is why I follow 8-bit.
Thanks for spreading the news.
Geek for Him says
Hmm wondering I make 200 transactions in a year. Possibly, 20k – hell no!!
Alex Quinonez says
Wouldn/t anyone receiving payments, whether through paypal or any other way be reporting this income already?
John Saddington says
yes, they should, as we do here at 8bit, but not everyone thinks of it or “remembers”…….
Alex Quinonez says
Right. Its interesting to me how now they HAVE to report it. Big Gov’t anyone? 🙂