Thank you for your response (I didn't know that you had responded - I didn't get an E-mail...).
As I wrote in my original post, I don't understand why PayPal doesn't have to report sales for any amount (not just $20K/200). Other credit card processors do this and IRS rules requires this. As I wrote above (Case 1):
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Case 1: From payment card transactions (e.g., debit, credit or stored-value cards), and/or
Case 2: In settlement of third-party payment network transactions above the minimum reporting thresholds of –
· gross payments that exceed $20,000, AND
· more than 200 such transactions
