Isn't that the job of the IRS? What does PayPal have to do with that?

Paypal has to report these things over a certain amount

But they don't have to police it. And they shouldn't.

Sorry, did you just suggest that a payment processor should not be required to ensure that when they hand money out, it's done legally?

There's a vast difference between reporting and freezing. Besides which, if I pay my taxes, in no way will PayPal ever be involved.

> There's a vast difference between reporting and freezing.

Yes, there is. For example, one is legal in this situation, and the other isn't. So, I'm still a little confused.

Is your position that PayPal should illegally pay money out, then report it?

It is not my position, in fact it's not even relevant to the issue that's being discussed. The original poster said that "the US will want him to pay taxes on that income and has no way to do so at present", so are therefore making PayPal collect on their behalf by freezing their funds.

My position is that it's not PayPal's role to freeze accounts without the specific guidance of the IRS. It's also not PayPal's business how the individual pays his taxes - he may decide to take the entire amount out of the account and then pay it in cash to the IRS. It's not up to PayPal to freeze the entire sum of money because the IRS wants their cut.

I don't know why you got down voted, I'd be interested hearing why that person disagreed with you!