For those of you who don't know already, the IRS is now requiring Paypal to report income on accounts that receive $20,000 in funds AND 200 transactions in a year.

Because of this new requirement, you will need to add your social security number into your paypal account, or if you use a FEIN, you need to contact Paypal to supply them that info.

To add your social security number, do the following:
1. Log into your Paypal Account
2. Click on Profile
3. Click on My Settings
4. Click on the UPDATE link to the right of Customer Service ID
5. Click on the ADD link to the right of Social Security Number and edit

Make SURE you do not make an error on the SSN, because I do not see a way to edit it once you save it.

A Paypal representative may be giving you a call to tell you to do this. Please be aware that they will NEVER ask for your social security or FEI numbers. If someone calls you saying they are from PayPal and asks for this info, hang up immediately.