What Does PayPal Report to the IRS?

Housing Assistance Tax Act
Beginning in 2011, the Housing Assistance Tax Act of 2008 will require companies such as PayPal to report certain information to the Internal Revenue Service (IRS).
Reporting Requirements
Under this act, PayPal is required to report to the IRS any individual or business receiving at least $20,000 in payments from a minimum of 200 transactions.
Preparing and Implementing
The gap between the passage of the 2008 Housing Assistance Tax Act and the law going into effect in 2011 gives PayPal users who receive payments time to prepare for tax reporting and gives the IRS a chance to figure out how to implement the new law.