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Court Authorizes Internal Revenue Service To Seek Customer Information from PayPal Inc.
The online payment provider, PayPal Inc., has received a summons from the U.S. Internal Revenue Service (IRS) requesting PayPal account holder information that may assist in the IRS' efforts to trace money that some American taxpayers are suspected to be hiding in other countries. The summons was approved by the U.S. District Court for the Northern District of California.
PayPal, which is owned by eBay Inc., enables individuals and businesses around the world to send and receive money by linking credit card and bank accounts to online PayPal accounts. According to Eileen O'Connor, Assistant Attorney General for the Justice Department's Tax Division, "Paypal is another one of the mechanisms by which money stashed overseas might be spent".
The IRS reportedly hopes that PayPal can help it to link credit card numbers to individuals, and to identify currently unknown taxpayers, credit card numbers and offshore bank accounts that might be evidence of tax evasion.
PayPal has stated that it takes the privacy of its customers' personal information "very seriously" and that it is still evaluating its options.
For additional information, visit:
http://www.siliconvalley.com/mld/siliconvalley/news/editorial/14318267.htm