Why do I need to confirm my U.S. tax payer status?

PayPal is required by the U.S. Internal Revenue Service (IRS) to report information about account holders who receive payments for goods and services in excess of certain transaction and payment volume thresholds. This information must be provided for U.S. PayPal accounts and may also be required for account holders outside of the United States (if the holder of a non-U.S. account is a U.S. person).

In order to satisfy these reporting obligations (including filing Forms 1099-K when necessary), PayPal must collect information from our customers (like their TIN and name).

U.S. citizen or other U.S. person/entity

Customers who exceed the reporting thresholds set by the IRS ($20,000 USD and 200 transactions) will be asked to confirm their U.S. taxpayer status and to provide their U.S. taxpayer identification number (SSN, EIN, ITIN) and name.

When you need to confirm your U.S. taxpayer status, we’ll let you know by email and by notifications that you’ll see when you log in to your PayPal account. Click the link provided in the email or in the notification and enter the requested information.

The information you provide will be compared to the information on file with the IRS. If it doesn’t match, you’ll be able to review and edit the information up to three times. If the information cannot be verified, you’ll be asked to also provide your address and certify your information. (This is the same information collected in the IRS Form W-9.)
If you have multiple PayPal accounts, you’ll need to confirm your taxpayer status for each account.

If the IRS has notified you that you are currently subject to backup withholding, don’t submit your information online. Instead, contact PayPal Customer Service for assistance with confirming your taxpayer information at 1-888-221-1161 (1-402-935-2050 if calling from outside the U.S.).

Non-U.S. person/entity
Customers who exceed the reporting thresholds ($20,000 USD and 200 transactions) set by the IRS will be asked to confirm their U.S. taxpayer status. If you are not a U.S. citizen or U.S. entity, you’ll be asked to certify that you’re not subject to U.S. income tax in our online form.

When you need to confirm your U.S. taxpayer status, we’ll let you know by email and by notifications that you’ll see when you log in to your PayPal account. Click the link provided in the email or in the notification and enter the requested information.

If the account owner becomes a U.S. person or entity, or becomes subject to U.S. income tax, the account owner will notify PayPal within 30 days.

State of Vermont and Massachusetts residents

In Vermont and Massachusetts, the reporting thresholds have changed with respect to tax years beginning with 2017 and PayPal is required to report all transactions greater than $600 USD (for Vermont) or $600 USD or greater (for Massachusetts) (instead of $20,000 and more than 200 transactions). All customers in Vermont or Massachusetts who meet the applicable threshold have been requested to provide their TIN and a pre-warning (Compliance-US IRS Verifications) has been placed on their account.