I am guessing here that it would be depending on the transaction.
If you had monies coming in and large amounts then it could be considered income.
But if you read paypal they claim they can shutdown and seize the account at any time.
So it means it is their account not yours.
So why would anyone have large amounts in that account anyway?
I have a friend that created and runs a multi-million dollar business and he shut down the paypal account just for that purpose.
It was to risky.