Katts K. and T. Lux (aerospiritual) wrote in artists_beware,
Katts K. and T. Lux
aerospiritual
artists_beware

This isn't a beware regarding an artist or a commissioner, but rather a heads up to anyone who uses PayPal as a means of business transaction;

As of 2011, PayPal will now be reporting the total payment volume of the following to the IRS:
-Anyone who earns more than $20 000/yearly.
-Anyone who recieves more than 200 payments per year.

I don't see the former to be much of an issue for most of us here, but the latter may or may not be of some interest for those of us who like taking on tons of small commissions, i.e. the Iron Artist 100+ image challenges and anything similar.

More information can be found here:
https://www.thepaypalblog.com/2008/08/proposed-irs-reporting-requirements-become-law/

Edit: Thanks to Joecifur for pointing this out;
According to PayPal[see here: https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W ];
"-If a merchant meets both thresholds by receiving over $20,000 in gross payment volume AND 200 or more payments in a calendar year, PayPal will send Form 1099-K electronically or by mail for the 2011 tax year. This document will be made available in January 2012.

-Will All Merchants Receive 1099s?
No. Only merchants who receive over $20,000 in gross payment volume AND receive 200 or more payments in a calendar year will receive Form 1099-K electronically or by mail."

Apologies for causing a stir over nothing; the blog entry, from PayPal staff themselves is worded as though it's one or the other, not both.
Tags: advice for artists, discussion
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