PayPal has a bad rep, but I think you're reading more arbitrary malice into the situation than is in evidence.

OP specifically reports that PayPal froze the account because he couldn't provide a necessary tax-reporting number. Getting the necessary number, and passing it to PayPal, may be all that is required. Talking to lawyers will just help the OP understand the situation... the lawyer may never need to communicate with PayPal at all.