TaxMan63,
Boy that must be frustrating! The IRS does say that it is quite possible many taxpayers are in the same situation. With regards the underlying tax forms, their FAQ (https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions-individuals) gives a set of steps to follow. First see if they can rescind the 1099-K. If not, the thing you can do is delete the 1099-K entry in TurboTax and enter the figure as Less Common Income->Miscellaneous Income->Other Reportable Income with the explanation "Form 1099-K issued in error". I don't know how to force the corresponding adjustment to subtract that same amount without going into Forms View. I do not know if that is available in the online version you are using. (I use the downloaded Desktop version.) Anyhow, if that is an option, you can override the entry on line 24z of schedule 1 following the same instruction.
Let me know if you can get one of those options to work for you.
