2011-12-06, 10:09 AM
Eos Wrote:That logic makes no sense.
Paypal generates a 1099-MISC on all income sent to a paypal account during the year, whether it was via donate or not.
The whole reason they make you do the verification of whether or not you're a charity is to determine if you're exempt from this, and if you're not, you get the 1099 send & filed. All tax liability is then on the recipient to prove/disprove.
No no I understand that but what I'm saying is paypal is intervening as if they are doing a good cause, which they shouldn't be doing