Have heard of this before?
 

I was attempting to purchase a battery maintainer and had a ad on PCA marketplace. A person contacted me with a Ctek battery maintainer. I sent money via Paypal but the seller returned the money because he says Paypal wants to tie the money to his SS#.

Never heard of such a thing. Be wary of a scam if he now asks for western Union or money order.

The new tax grab, eBay and PayPal will make you file W9s
"How does PayPal report my sales to the IRS? Will I receive a tax Form 1099-K?" https://www.paypal.com/us/smarthelp/article/how-does-paypal-report-my-sales-to-the-irs-will-i-receive-a-tax-form-1099-k-faq729

So, if I am selling used parts that I originally bought with my taxed earnings, I have to pay income tax again on any money that I recover? It's bad enough that the sales tax is paid twice.
Sounds like the "double dip".

Sure it is, dems don't think taxing once is enough. I read about it on one of the vintage bmx forums I belong too. Several of those guys are always buying and selling on eBay, part of the hobby.
One thing mentioned was the fact that you will be taxed on $600, but what if you paid a $1000 for it and sold at a $400 loss?
Clearly there is nothing clear about how they are going to do this.
But hey, unless you make X amount of $$ your taxes won't go up, yeah that will really happen..

Have you actually gotten one from them? I haven’t, and I qualify. I think it’s a CyA statement from pay pal and not much more.

Always be careful with direct payments on PayPal, especially if they're telling you to send it as friends and family.

From my understanding if you sell something on Paypal at a loss (or no profit) there's nothing to report.

Not yet, but I did get the notice of the change from PayPal..
Previously it wasn't an issue.

So do they then report it to the IRS on a 1099? If that's the case I'll report it on my schedule C (sale = net $0) then deduct the mileage driving back and for to UPS/FedEx to ship it as a business expense.

I clicked the link and read some more last night.

They do have reporting obligations of any transaction over $10,000, just like a bank.

That is secondary to this. Obviously this is supposed to help prevent their services being used for money laundering. I don’t know where the $20k or 200 transactions threshold came from. However, my reading of it is they will generate a 1099 that you, or the IRS, can download. It sounds like a passive act, and not an active one.

If they send me one for this year, you can bet I’ll will produce receipts for the car I sold at a loss and claim it as such. I have paper and can prove it. Just because they issue a 1099 doesn’t mean we have to pay taxes on it.

Couple of things: reporting transactions of $10,000 or more is like a SAR your bank has to file (only their threshold is $7500) i think that's tied to the PATRIOT Act which is meant to prevent laundering by bad actors.
Secondly, there's the belief that some people are making fat money selling through eBay and avoiding income tax. I don't know if you remember (an unnamed politician) claiming back in 2001 there were 400,000 people making a good living from selling on eBay.