THE NEW WHITE ENVELOPE?

So I just saw were Paypal has apparently marketed a new, secure service to bypass the need to visit an ATM when you owe a "friend" some money, if you have an I-Phone, Droid, or Blackberry. I know there are folks out there that are more tech savvy than I am. It looks secure, but what are the possible pitfalls? Is this a viable method of payment in the future of the hobby? How interested will providers be in using this? Will it replace the white envelope if we simply "bump phones" before our session?

I haven't downloaded the app yet--thought it might be wise to see the various perspectives before trying it out.

I've actually been using Paypal for a while now for appointments made well in advance, especially with gentlemen from out of town. I'd be delighted to have an "instant" option, but it would have to be available on all cell phones, I think, not just the teckkie trophy models. Would be as secure an any other electronic payment, but bear in mind that any system can be hacked. Nothing says "NOW" like cash.

I've had the paypal app installed on the iphone for quite some time. It's a nice tool to have. I've not used it regarding the hobby though. But if I decide to peek out of retirement in the future, I would have no problems using it if accepted.

Hmmm... that's pretty interesting. Have to check it out

I'm not very fond of the whole idea of it...would it be much easier to track people/cash like this? There would be a paper trail of who you paid and how much.

I'm not very fond of the whole idea of it...would it be much easier to track people/cash like this? There would be a paper trail of who you paid and how much. Originally Posted by Tiffany Cums

I'd think it would create a trail . . . And even worse for providers, PayPal is being required, starting soon, I believe, to report to the IRS on accounts with income greater than some amount in a year, I think it's $10K if I'm remembering correctly . . .

Can't beat cold, hard cash . . .

Well, my situation may be different. I had(have but not in use) a specific hobby related card. It went to a separate address than the homefront and I never kept a balance. I can get personal mail at my office and I have my own bank account that only me, and now the rest of eccie knows about...LOL.

Now if a provider is worried about a paper trail and any tax consequences, or maybe a married provider would have to answer up to something, it may not be the best option.

So....

I'd think it would create a trail . . . And even worse for providers, PayPal is being required, starting soon, I believe, to report to the IRS on accounts with income greater than some amount in a year, I think it's $10K if I'm remembering correctly . . .

Can't beat cold, hard cash . . . Originally Posted by SlowHand49

Well, chances are there is a paper trail, no matter what you are doing, if somebody looks hard enough.

I am concerned about the IRS thing, however, as my regular Paypal account does see quite a bit of traffic as I run the cottage industry that funds my hobby habits and the beards I use to travel out of town.

Does anyone have more info on this stipulation? Is $10,000.00 in proven revenue or profit, or just $10,000.00 in transactions?

Paypal works well for. . .well a number of transactions I want to hide for a number of reasons, but I am always careful to keep the balance low after I run funds in and out the account on a spin cycle.

I wonder if this is Big Brother finding a backdoor to hunt eBay income and such?

Looks like it's income over $20K, or more than 200 transactions annually. Just google PayPal IRS . . .

I love PayPal and I love paying my taxes like a good girl. You need to report some income. In the future when you want a loan for something those returns you've filed will help establish self employed income.

This article cracked me up http://www.chron.com/disp/story.mpl/...s/6238797.html

"So where on the tax form should one report illegal booty?

IRS spokeswoman Robin Sabin of Houston suggests Schedule C for the small-business owner and the 1040 line “other income” for the free-lancer. She said this stuff just doesn’t show up on a W2 form.

“You should report your ill-gotten gains just like you report any legal income,” said Sabin.

She said a business name would be fine and that taxpayers needn’t spell out their illegal activity.

“It’s not that we don’t care,” she said. “We want to be able to identify the source.”

Sabin said that, unless someone is suspected of terrorism, the IRS has trouble sharing suspicions of criminal activity and would have to go through a judge to be able to tell another agency of its suspicions.

But, she said, tax-evasion cases involving illegal gain usually come to the IRS the other way — from a criminal investigation done in tandem with another agency or, as in this case, from information from other law enforcement.

“It’s like the Al Capone situation,” Sabin said. “He conducted a lot of illegal activity. It was hard to convict him, though. So what did they get him for? Tax fraud.”

. . . “You should report your ill-gotten gains just like you report any legal income,” said Sabin.

She said a business name would be fine and that taxpayers needn’t spell out their illegal activity. ... Originally Posted by RebeccaRothko

A consulting business can take in a whole lot of territory . . . just sayin' . . .

Thanks for the heads-up, Slowhand. . .I hit those threshholds in about four months.

I guess it couldn't have lasted forever. I am getting too old for this shit. Now I need to find a few more shells to hide money and nefarious activity under. Pretty soon I will be looking for providers that will negotiate for Morgan Dollar Era Silver.

I was actually reporting some of it as extra income, but obviously not all of it--more afraid of the SO than the IRS: the IRS can only put my ass in a comfy jail cell!

Of course, as all of this unfolds the states will be in line next for eBay sales tax and internet sales tax. Talk about a paper trail you don't want. . .

I feel some kinda way about using pay pal after hearing all this crap about ladies' accounts being frozen, etc. when pay pal suspects something.

i would definently accept paypal for those who i have either good references for or those have already seen me .......i also am a good girl i pay taxes I have business liscense for an escort line i used to share in lake charles before my eccie days! and claim as a dancer! keeps the heat off me

I feel some kinda way about using pay pal after hearing all this crap about ladies' accounts being frozen, etc. when pay pal suspects something. Originally Posted by Nina Rae

I hear you Nina. I have heard of way too many stories about frozen accounts.