Hi
I have seen some guidance on this but it has been a bit conflicting, with some posts saying do nothing, while others say report it. Here is what I have:
I accidentally sent about $26,000 from Paypal to my personal account rather than our 503(c)3 nonprofit account. When I saw the money in my account, I had my bank move the money from the personal to business account (both are at the same bank.)
Now I am worried about how to report this. I use the Home and Business TurboTax for personal and we file 990 forms with the IRS for the non-profit.
Do I:
1. Do nothing and wait for the IRS? (Which feels really wrong.)
(https://ttlc.intuit.com/community/taxes/discussion/re-i-transferred-money-from-my-personal-to-busine...)
2. Report it as Other Income and then deduct the 26,000, as some posts have indicated.
3. Or do I report as Other Income ($26,000) and then a second Other Income (-$26,000) to zero out the total as other posts have indicated. (https://ttlc.intuit.com/community/business-taxes/discussion/received-1099-with-personal-name-instead...)
Within our Paypal account, I do have our non-profit EIN and my own SSN listed.
Any ideas?
