I have read that statement so many times, 200 sales AND $20,000 gross payments and couldn't help but wonder if they are incorrect or wording it wrong so that we are not seeing it correctly. It worries me aeveryone is taking Paypals word for this, especially in light of the verbage "gross payments" being used. Why would they use the term gross payments" in conjunction with a designated number of transactions.
If the goal of this is for the IRS to be able to better track and tax income, then why would they apply the "both" criteria to the extent it could mean they are overlooking a lot of money. That would mean as a seller, I could have 199 transactions at an unlimited dollar amount, which could potentially mean a million in revenue ......why wouldn't the IRS want that reported?
I work for a tax office each season and all this has lead me to investigate further and the following statement was taken directly from the IRS site:
What is the de minimis standard for reporting?
"The de minimis standard exempts the reporting of transactions settled by a third-party settlement organization of a payee in a third-party payment network if the aggregate payments to the payee do not exceed $ 20,000 or if the aggregate number of transactions does not exceed 200 within the calendar year. This applies only to the payments settled by third-party settlement organizations."
taken from this page: www.irs.gov/newsroom/article/0,,id=249029,00.html
Note the use of the word OR.
I think you should read it and interpret it as seems most correct.