961233
My friend has been using Google pay/wallet to split bills among our roommates for years now and has never had any issues. I should also say that my friend is not a small business and does not use the account for commercial use. There is also a button that can be clicked to make google pay a commercial account and my friend has never clicked it and it remains un-clicked today. Anyways, so my understanding of the situation is that Google has sent my friend an email indicating their intention to send them a 1099k unless they can prove they weren't using the account for commercial use. I am wondering if anyone has any info I can pass onto them. The situation with their account is essentially as I already mentioned that they use it to split bills. I think the issue may be because we all went on vacation together and we paid them pretty large transactions to pay for the hotel, tickets, airfare, etc. They get discounts on all these things so they bought them and we paid them back using Google Pay. Obviously this wasn't income but I feel super bad about putting them in this situation so I was hoping I could get some help for them here. I'd like to give them advice on how to help them get out of all of this through Google so they don't have to deal with the IRS. Any ideas as to what they can tell Google to nip this in bud before it becomes an IRS problem?
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Google pay (formally wallet) has no option ... if the min requirements to issue a 1099-K are met they must do so per the IRS regs. Now if this is truly NOT a business this friend needs to keep excellent records to refute any IRS letters in the future if they choose to ignore the form OR just report it on a Sch C and take a like amount as expenses to zero out the reported amount.
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