Recent legislative changes in the US require payment processors, including PayPal, to report gross payment information to the IRS on Form 1099-K for customers who receive payments of $600 USD or more for the sale of goods or services.
You may have been notified to provide your Taxpayer Identification Number (TIN) and confirm your tax status if you’ve received payments for goods or services through PayPal, and don’t have a Taxpayer Identification Number (TIN) updated in our records. This is required by the IRS and US state revenue authorities.
To ensure that payment information is accurately reported, where required, please update your account information by providing a TIN to avoid any potential limitations on your account. A TIN can be a Social Security Number (SSN), Employer Identification Number (EIN), or Individual Taxpayer Identification Number (ITIN.)
If you have multiple PayPal accounts, you’ll need to confirm your taxpayer status for each account. You will also receive a tax Form for each applicable PayPal account.
Here's how to confirm your taxpayer status in 3 steps for each of your PayPal accounts.
Here’s how to add your Taxpayer Identification Number or Social Security Number to your PayPal account:
Then, if necessary, we’ll send you the relevant tax form in January per IRS reporting requirements. If you’ve already entered your Tax ID Number, you may have received a notification if the information doesn’t match IRS records. Log in to confirm that it’s correct.
Sole proprietors and single-member LLCs:
When confirming your taxpayer status, enter your name as it appears in line 1 of your 1040, 1040A, or 1040EZ. If you’d rather provide your Employer Identification Number, submit your Form W-9 to ensure that what we enter on your Form 1099-K matches IRS records. You can upload your completed tax form through your PayPal account using the alert dashboard, Message Center, or limitation.