Email a copy of 'A 1099-K Notification from PayPal Alerts Seller to Unanticipated Problem' to a friend
Loading ...
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.
While I am sympathetic to the reader on this issue, the business owner really needs to have two PayPal accounts one for each business entity. This is no different than comingling funds in a business bank account which also the IRS frowns upon. This is not really a PayPal problem but a business owner problem.
When you file I would just have the business write off some kind of expense to the other business and the other business can now claim that money as income. Looks like the writer is dealing with small $, I don’t think the IRS will be scrutinizing his businesses..
Don’t count on it. I know poor people the IRS has went after for not that much money (under $500). The Dems need all the tax money they can get to spend on their agendas! This $600 threshold was the start and now hiring 87k more IRS agents will accomplish their goal.
Since I first began using PP it’s been disheartening because there doesn’t seem to be a way to distinguish between payments or income. All PP seems to know is “money in” and “money out.” They lump personal and business transactions into one single “account.” To be absolutely safe I would agree with DTSM, it’s better to have two separate accounts. That of course depends on whether PP will allow one individual to do so.
The only other thought I can think of is if there would be some way to code each transaction to apply to Business A or Business B, so that you could sort the PP total financial report into the correct business, once you got the information into a spreadsheet. I do not know whether PP will generate separate financial reports for different emails (if the businesses have emails that are different from each other and are both registered with PP). I haven’t ever tried, but that might be a possibility.