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Level 5

How should I respond to the IRS' request for submission of a Schedule C for my 1099-K from 2015?

In 2015 I lived in Florida all year. I was single, lived alone, and rented. I was employed full time by the same company I have worked for since 2010.


I made a major move in June of 2015, remaining in the state of Florida, and downsized from a 3BR, 2BA house (rented) to a 1BR condo (rented). In downsizing, I sold a lot of my personal possessions at a loss online, receiving payments through PayPal. I was unaware of my tax implications as a result of this and did not receive a 1099-K in the mail from PayPal. When I filed in 2015, I did not file anything in regards to the items I sold or claim anything related to this. I only filed my normal income from my job, as I usually do.


The IRS sent me an audit letter in 2017 which I responded to in September of 2017. I provided a full list of my PayPal transactions for 2015 and explained the downsizing and moving situation that I went through. Now they have sent me a letter requesting that I submit a Schedule C for my 1099-K.


I am very confused. Do I really owe the IRS over $10,000.00 in taxes for 2015 on the used items I sold at a loss through eBay and elsewhere online?