IRS levied my business Paypal merchant account. The EIN number is registered to the business and is what Paypal uses to report income to IRS, though my personal SSN is also on the account. IRS sent Notice of Levy to Paypal and Paypal froze acct and removed funds. IRS Section 408(n) states they cannot send payment to IRS for 21 days. I called IRS, make arrangements and Paypal has reinstated account, but not released the funds and won't provide any info.
Paypal claims to be a money transfer service/merchant processor. How can IRS levy Paypal if Paypal claims not to be a bank account? Can IRS levy any credit card processor? How can I get info from Paypal when my funds will be redeposited to account?
I should clarify, IRS issued notice of levy on Paypal business account for my personal tax, though the account is registered to the business with the business EIN.
If I am not mistaken once you reach a certain threshold with paypal they send you a 1099-k for credit card transactions. The IRS will go after various sources of income. I am sure that you needed to attach you personal SSN in order to open up a paypal account that allows for these types of transactions. The short of it is that yes, the IRS can levy your paypal account and I am sure they are going through the 1099-k reportable transactions.
You have very little time to get that levy lifted, and I mean little time. You can call me or you can hire someone close in your area, but that money will get transferred to the IRS if you don't do something about it. There are many different strategies to getting the levy released, but the most important thing right now is to get someone to help you with the levy. Good luck!
Isai Bismark Cortez, Esq. www.bismarktax.com Office 855-829-6055 DISCLAIMER: THE ABOVE INFORMATION IS NOT LEGAL ADVICE. THIS IS GENERAL INFORMATION AND LAWS VARY FROM STATE TO STATE. PLEASE CHECK WITH A LOCAL ATTORNEY OR CONTACT THE IRS OR STATE TAXING AUTHORITY WITH ANY QUESTIONS.