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Why would eBay ask for your social security number or tax payer information number?
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Why would eBay ask for your social security number or tax payer information number?
monroe67
Mentor9 months ago"Why would eBay ask for your social security number or tax payer information number?"
Because laws require them to do so.
eBay receives money from buyers who buy things on eBay. eBay is required to send some of the buyer's money, the sales tax portion, to the state where the item is delivered. Some sellers' states require evidence that those sellers collected sales taxes on sales to buyers within their own states. Having the sellers' SSNs or tax identification number on file can help sellers prove they (and eBay) have met that state requirement.
After eBay keeps their own fee for providing the platform and doing all the things they are required to do, eBay transfers the remaining sale proceeds to a seller's bank account. Having the seller's SSN helps eBay know they are transferring that money to the account of the correct person.
After the end of the year, eBay is required to report the earnings of some sellers to the IRS on Form 1099-K, with a copy to the seller. eBay tries to make their own life easier by keeping sellers' SSNs on file at the beginning of sellers' involvement with eBay, rather than waiting until the end of the year to get those SSNs. This helps eBay to file all their Form 1099-Ks on time. eBay faces IRS penalties if they are late in filing Form 1099-Ks.