Paypal Donations? Taxes???

[ablaye]

Originally Posted by G10

Does your paypal account transfer money into your bank account?

If not, what system are you using to withdraw your funds?

Yes it does transfer money into my bank account. However, that does NOT mean that paypal reports your earnings to the IRS. Paypal does not send the 10.. something form to the IRS. Check out Paypal tos and you'll see that what i am talking about.
Paypal expects YOU to report your earnings to IRS.

I am NOT saying that I am not reporting my earnings to the IRS. In fact, even though I hate paying taxes and I surely don't want my tax dollars to be used to murder innocent people in Iraq or to be given to Israel so that the settlers may build on stolen palestinian lands, I do report my earnings. I don't want to get in trouble with the feds.

But in theory, you could avoid to report your paypal earnings to the IRS and get away with it.

[Bluecircle]

I saw him post another thread just a day ago! He must have some news!

[G10]

Originally Posted by ablaye

Yes it does transfer money into my bank account.

The moment the money drops into your bank account, there is a trace back.

Originally Posted by ablaye

But in theory, you could avoid to report your paypal earnings to the IRS and get away with it.

Possibly, in theory you could get away with a few transactions into your paypal account but the moment a business sends money over to you and they get checked out by the IRS, the IRS will see a payment trace to your account and will know that you have received payment.

The thing about electronic money is that it leaves traces.

[Immo]

Swiss Bank Accounts are the answer! But as G10 says, everything electronic leaves a trace, if someone wants to find it bad enough they will.

[bytech]

Few / none who pay out money report to Government revenue agencies about how much they paid and specifically to whom. But you can bet yer arse that if the Govt goes to someone who is writting stuff off on their end, they will tell the Govt whom the money went to, and exactlly how much. Paypal will not be sending letters to any revenue agency about whom made how much, but if the govt asks of them, the book on you will be handed over quicker than you can get in your car and drive off to Mexico or Switzerland (depending on yer continent ).