i have a US account and i mostly receive small payment as F&F but some people due to their country can only make payment as G&S. Now it seems that i reached the $600 threshold and paypal requires tax id otherwise will hold 24% and holds payment
This is the notice " This payment's on hold. Add your tax ID by -date- to avoid 24% IRS backup withholding " and in email "Since we don’t have your tax ID, payments you receive for goods and services are on hold.Without your tax ID, we’ll start sending 24% of your payments to the IRS for backup withholding -date-. If you receive payments in currency other than US dollars, any currency conversion will occur after the tax ID hold is released."
Have some questions about it
1- will there be any other problem if i leave the tax id empty? will the account be ok afterwards?
2- pp will deduct 24% of all G&S payment through the year or 24% from $601 and above?
3- After the expiry of deadline they will just grab the 24% at once or put it on hold again? How long will be on hold?
4- F&F will be left untouched ?
5- Next year the threshold will be reset?
This is the notice " This payment's on hold. Add your tax ID by -date- to avoid 24% IRS backup withholding " and in email "Since we don’t have your tax ID, payments you receive for goods and services are on hold.Without your tax ID, we’ll start sending 24% of your payments to the IRS for backup withholding -date-. If you receive payments in currency other than US dollars, any currency conversion will occur after the tax ID hold is released."
Have some questions about it
1- will there be any other problem if i leave the tax id empty? will the account be ok afterwards?
2- pp will deduct 24% of all G&S payment through the year or 24% from $601 and above?
3- After the expiry of deadline they will just grab the 24% at once or put it on hold again? How long will be on hold?
4- F&F will be left untouched ?
5- Next year the threshold will be reset?
