Home > News > IRS Probes PayPal for Tax Evadors • Bookmark   • Newsletters   • Register Search Options


IRS Probes PayPal for Tax Evadors

IRS Probes PayPal for Tax Evadors
Get XBIZ News
Oct 20, 2005 11:30 AM PDT    Text size: 
SAN JOSE, Calif. — The Internal Revenue Service thinks potentially hundreds of people are using eBay’s PayPal service to evade paying income taxes, and have asked a federal judge for access to the company’s customer service records to help prove it.

According to court documents filed in the case, the IRS believes people are transferring money through PayPal into foreign banks, using bank secrecy laws in other countries to hide their income.

“This case is not only important to the administration of tax laws, it may have significant impact upon the public fisc,” read the court papers, filed earlier this week.

Investigators admit they don’t yet know the extent of the income abuses perpetuated through PayPal, but federal estimates suggest roughly $40 billion a year is lost through scams involving credit cards linked to foreign banks.

Representatives at PayPal would not comment on the case, but the company has a history of cooperating with law enforcement.

Last September, after government pressure, PayPal announced plans to levy steep fines against customers who use its services for transactions related to porn or Internet gambling.

PayPal distanced itself from the porn and gambling industries shortly after it was acquired by eBay in 2002. Starting Sept. 24, the company began imposing fines against individuals for up to $500 for all gambling and porn transactions.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


Cam World: Camming and Toys Go Hand in Hand

There is nothing more satisfying than pleasure, especially if it is sexual. The size or the presentation of the stimulus does not matter if the sensations and tension the body receives transform the way... More »

Cam World: Injecting Personality Into Your Room

Since the last issue of Cam World, I’ve made some significant life changes. I’m working from Colombia now. This was a decision that was not entered into lightly, but change gives you a chance... More »

Fraudulent Brazilian Trademark Registrations Running Rampant

Although you might not think often about protecting your trademark rights in Brazil, you need to — even if you don’t yet have a single Brazilian customer. Scammers are constantly looking for... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.



Mar 31 - Apr 02
Denver, CO.

Eurowebtainment 2017

May 17 - May 20
Majorca, Spain

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!