Many PayPal users must have been getting the red flag of PayPal Tax Payer Status on their respective PayPal accounts. We’ll you shouldn’t panic when you get this message, it’s just a very simple thing to solve and right on this article, every details you need to know well about PayPal US Tax Payer Status will be explained here.
PayPal just has a while lot attached to it and this is just to make sure everything works effectively for safety and security of our money as well as business transactions carried out with it. The features on PayPal accounts happens to be different in terms of country. For example, the USA PayPal account requires a tax payer document file submitted to periodically and safely have a proof of payment of taxes as requirements of the US Law.
If you like to use and want to continue enjoying PayPal’s services then it is a must you confirm your USA tax payer status or you risk having your funds withheld from time to time. So kindly follow this article carefully to uncover more about US PayPal Tax Payer Status.
WHAT IS PAYPAL US TAX PAYER STATUS?
PayPal US Tax Payer Status is a kind of tax statement required by the U.S. Internal Revenue Service (IRS) to report information about account holders who receive certain types of payments in excess of payment volume thresholds.
WHY DO I NEED TO CONFIRM US PAYPAL TAX PAYER STATUS?
There’s every necessary need to confirm your PayPal US Tax Payer Status because if not done, funds to your PayPal account will be placed on hold and 24% of your each withheld funds will be deducted. That way, you will certainly avoid a hold and 24% IRS backup withholding when you’re paid via paypal.
Furthermore, it explains that every PayPal account tends to receive this notification is an account that has received a cumulative amount of $600 or more. A change to US tax law requires 24% of your withhold payment for the US Interval Revenue Service.
HOW TO SOLVE PAYPAL US TAX PAYER STATUS FOR NON US CITIZEN
If you wish to be free from the PayPal red flag info of US Tax Payer Status, follow this guide;
1. First login to your PayPal account, scroll to notification section and click to open the US Tax Payer Status page.
2. You may also access the page on your PayPal account just beneath your balance. The very next thing you see is a brief of what happens if you fail to submit your US Tax Payer details, now click on Confirm Tax Payer Status.
3. On the next page, select No which indicates that your account is not a USA PayPal and not registered under any USA business as required by law to provide tax documents for it.
4. Once you select No, a page to enter your correct Residential Address will be displayed. Go ahead and enter your address details without your P.O Box. It is highly recommended that you enter the address and full name attached to the affected PayPal account because it will be cross-checked for verification.
5. Finally, click on Submit and you should receive a message saying your information has been submitted. Click OK to reach your home dashboard and the red flag on your account will be removed immediately.
In Conclusion, this article has vividly explained everything about PayPal US Tax Payer Status and the every guidelines to confirm your account of US tax payer without being a US citizen or running a USA PayPal account.