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From your comments, you had multiple PayPal accounts (disallowed), were in Venezuela, using a US PayPal account, then transferring the funds to a PayPal account
by dangrossman 14y ago
From your comments, you had multiple PayPal accounts (disallowed), were in Venezuela, using a US PayPal account, then transferring the funds to a PayPal account in Venezuela, and can't provide a tax ID for the US account. At the same time, you went from zero to hundreds of thousands in payments in just a few months. To PayPal, you likely appear to be a criminal involved in some type of money laundering or tax evasion scheme. I don't know enough about student Visas and international tax agreements to say you aren't actually engaging in tax evasion, perhaps unknowingly.
It's not surprising they locked the account and asked for documentation. The tax code pretty much guarantees they would within a year in order to file the 1099-K on your account. This stuff is serious to them, both from a financial (the potential losses if this money disappears because it's not been moving legally) and regulatory fronts (US Patriot Act among others requires banks, like those underwriting your US PayPal account, to be able to accurately identify their customers). This might not be easy to fix.
- greenyoda 14y agoThanks, I had never heard of a 1099-K before. In case others are curious, here's a description of what it is: "Due to the rise of of people making money with the help of the Internet, the 1099-K has been introduced. For the most part, the 1099-K is meant to ensure that income made from power sellers on sites like eBay is properly reported. The 1099-K is issued by third party payment processors, including banks and non-bank services like PayPal. So, if you use eBay to earn money selling, your transactions, processed through PayPal, will be reflected on the 1099-K issued by PayPal."[1] [1] http://cashmoneylife.com/1099-k-form-reporting-requirements http://cashmoneylife.com/1099-k-form-reporting-requirements
- sigkill 14y agoThis was a problem for me while moving. I had to completely delete my US paypal account and only then was I able to open another account in an international address. There was no simple way to 'migrate' the account or add another card with an international address.