I received a Cp2000 notice in ref to income reported on 1099K from PayPal for 2022. I use PayPal for depositing and withdrawing from online gambling sites. I immediately requested my PayPal activity for that year and forwarded to the irs explaining that this was not for self employment income as they put in their notice but for gambling. I honestly forgot to list this income with my gambling winnings for which I did receive w2g forms for. So basically my question is can’t I just amend my return and include the amount from my PayPal 1099K under my gambling winning losses???? The PayPal activity clearly shows the name of all the online gambling sites used so that itself should have explained to the IRS that this was not self-employment income. I understand that I failed to list that income, however the Correction of my return is still incorrect in my eyes because they’re listing it as self-employment income.
