I received a notification from IRS that my 2014 return had been filed incorrectly due to a 1099-K not having been added. The situation is slightly complicated however it is definitive that the notification was sent in response to an error on Paypals part. I have two different PayPal accounts, one of which had a total of 191 transactions for the year, my other PayPal account was created simply in order to receive transactions from myself and separate business and personal accounts.. This secondary account got marked for having 11 transactions for the year, pushing my total number to over 200 and therefore creating the need to list the 1099-k for third party transactions on the years taxes (specifies a need if over 20,000 dollars or 200 total transactions). I have a log of all my transactions for both accounts, and from the secondary account (and in some cases also on the primary) it is showing transactions to and from myself as valid to be counted as a part of the 200 threshold which necessitates filing if exceeded. How do I go about resolving this issue to the IRS? During that year I had never received any 1099 from PayPal, and even now when the total exceeds 200 transactions, it does so based on an error.. Personal transactions (such as "sending money to a friend" through PayPal are NOT supposed to be listed as valid.. The IRS is asking for nearly $9k after penalty fees for incorrect filing are added, I don't want to get stuck paying that based on something PayPal has filed improperly. Any help would be much appreciated. Thank you
