It's just more government control of its citizens. However, I'm sure whatever additional monies they pull in with this new scheme will be managed wisely and go to a good cause.
PayPal has already sent me six emails that I Must Comply. And I haven't even bought or sold anything in 2022.
1984
I just got my compliance request email from PayPal today. I use the service as a secondary security layer, otherwise I sell on eBay once in a blue moon. I don't need their service if they force compliance. There are alternate methods of selling. Curious to see if PayPal mandates this compliance.
I actually got a 7th demand yesterday from PayPal. I replied to the email, You've sent me 7 demands already; how many do you intend to send me.
No reply.
I have not bought or sold anything, over or under $600 in 2022. Why must I be in compliance for something that didn't or may not even happen?
Out of curiosity what is it that their letter is asking for? A current address? SSN/Tax ID? What do you need to do in order to "comply"?
Avoid account disruption and meet the new IRS requirement
The IRS will soon require anyone receiving $600 in payments for goods and services to confirm their taxpayer status. As someone who's received payments through PayPal, you'll need to confirm your taxpayer status by providing your Tax ID Number to meet the requirement and avoid any disruption to your account.
The IRS has required this for quite some time. As a general rule, if someone pays you more than $600 in a calendar year, they must report this to the IRS.
But, the fact that you received money, does not mean that you need to pay tax on the entire amount. Generally, you are only taxed on your profit. Buy a camera for $1,000, and later sell it for $600, and that $600 may not be taxable as you lost $400 on the transaction.
Now if you buy a camera for $600, and sell it for $1,000, then the $400 profit may very well be taxable income.
