I read the answer seems like if you do it that way your gross income would show you made more money when you didn’t, that is the issue I’m having with a client now that’s in a audit with IRS. This is a glitch in the IRS system.
Client received 1099k from pay pal and the same people that paid him gave him a 1099misc, this is duplicated income and should not be in gross receipts.
If you do it the way you guys are saying the over income is not going to be correct. Even though yes you won’t pay taxes on it, but that’s a big difference saying I took in 200k when I only took in 70k understand ?
So we have brought this to the auditors attention and he’s not buying it, this poses a really big problem that should be corrected..... on IRS’s end.
