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Old 08-29-2014, 09:16 PM   #24
ereadingdotcom
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Something else to consider and that some new authors using Bookbaby might run into - even though BB isn't reporting, they make all payments through Paypal. Paypal now (as of last year) reports payments and issues 1099K's to account holders receiving payments (gross, of all types) over certain thresholds (200 transactions & $20K or more). Though few authors are likely to hit the threshold, I believe after a certain amount (I've heard it's around $500 but that could be incorrect), Paypal will request a SSN or other TIN (EIN, ITIN, etc) and will freeze the account if they don't get it.[/QUOTE]


Using PayPal is, in our opinion, always fraught with risk. They have a tendency of freezing accounts for a wide variety of reasons; this sounds like just another one.

That said, accountability is necessary, both for the parties processing the payments and the authors.
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