They do have a tax id # and are in the process of filing paperwork to obtain a 501C status - but don't have it yet - and definitely didn't have it for 2016 (the year in question). They have no employees, only volunteers (my husband is one of them). They do have a President, VP, Treasurer, Secretary. My husband is in charge of youth registrations and just set up the paypal account the same way his predecessor did. But at the time, they were only taking paper registration forms with checks from parents. Now, with the threshold of $20,000 of gross receipts and 200 separate online transactions, that registration process triggers the 1099K from Paypal. We probably should have known better than to put our own SS# but didn't have any precedent for the amount of online transactions we would be doing and didn't think it through. Ugh.
Thanks for any help you can give us. We definitely don't want to get on the wrong side of the IRS - but also don't want to pay taxes on money that we never received.
