If this paypal account is tied to your(or her) business account then paypal must report all the transactions per the new regulations. Note this only affects the "income" on an account not the expenditures. So only the person receiving the payment will be affected. They say personal transactions are not going to be reported however how they decide which is personal and which is not is not mentioned in their FAQs ... this would be a question for Paypal to answer ... https://www.paypal.com/us/webapps/mpp/irs6050w
Are personal payments that I receive counted in the total that will be reported to the IRS?
No. Personal payments that are not payments for the sale of goods or services will not be counted when determining if the IRS thresholds have been reached and will not be included on your Form 1099-K if you exceed the thresholds. However, all payments received for the sale of goods or services will be used to calculate the gross payment volume to be reported. PayPal monitors accounts to ensure that personal payments are not being used for sales of goods and services.
IRS current info :
https://www.irs.gov/payments/general-faqs-on-new-payment-card-reporting-requirements
I still contend there are other options available to you to "spend" the needed monthly amount by using the CC to pay for monthly bills like utilities... see my other post.
