Something is amiss..

[portbluffdweller]

Hi,

I've been sporadically selling on eBay for 24 years. I have a 100% positive feedback. I made a sale this week (7/31/24) that put me over the" $600 IRS sales threshold" and eBay emailed me that they were holding those proceeds until I gave them my social security number, "per IRS regulations". I looked up the latest IRS ruling on this issue and the IRS threshold for sales in 2024 is $5,000.  I spoke with 3 eBay representatives yesterday and none seem to care that they are giving out the wrong information stating it is "per IRS requirement". When I stated that A.) the latest Its ruling is $5,000 for 2024 and B.) I don't give my social security number out any more to businesses, the last "team leader" in the payment department stated "that's up to you". "You just won't be able to sell on eBay anymore" and completely disregarded that the IRS is not requiring this action on $600 of gross sales. Wow. So much for loyalty. Sounds like Ebay is using extortion to gain personal and private information.

[rock.star]

There are several states that are using the $600.00 level for the state income tax. 

[portbluffdweller]

Ebay representatives did not tell me that. They said "per IRS...." I will look into which states. Perhaps eBay is just gathering social security numbers regardless of which states.? Still doesn't seem right.

[glorybells]

They’re not quite explaining it correctly.  Needing your SSN isn’t really about the threshold.  Since they now pay directly to your checking account instead of using PayPal anymore, federal banking laws require them to have your SSN on file.

[inceptions]

Post edited to remove error.

[portbluffdweller]

There has to be an alternative, glorybells. I am not the only one who doesn't give their social security number out nowadays. I just opened a Login.gov account for the new social security verification and have had a ID.me account for a while. These are both government accepted processes for secure verification. And again, I've been with eBay for 24 years. 

[inceptions]

@portbluffdweller 

See this IRS link:

https://www.irs.gov/irm/part4/irm_04-026-005

4.26.5.5.1 (06-23-2020)

Currency Transaction Reports

(3) Before concluding any transaction with respect to which a CTR is required, a financial institution is required to verify and record the name and address of the individual conducting the transaction, as well as record the identity, account number, and the social security or taxpayer identification number, if any, of any person or entity on whose behalf such transaction is to be affected. See 31 CFR 1010.312, Identification required.

There has to be an alternative...

There is. The alternative is not to sell on eBay or anywhere else where your payments are processed through a payment processor.

[portbluffdweller]

Gocha, Inceptions!