The purpose of the 1099-K is for the payment settlement entities, such as PayPal, Venmo, etc., to report credit card sales and other reportable sales transactions to the IRS. The reporting requirement is triggered when the total dollar amount exceeds $20,000 and the total number of transactions exceeds 200. Keep in mind, the IRS will receive a copy of the 1099-K, and they complete a document match. If you do not enter what is on the form, it can cause the IRS to reject, review, or audit your return.
If there is a dispute with the amount reported, you may need to contact PayPay to resolve and have them issue you a corrected 1099-K. You should not file the return with an altered dollar amount that does not match your tax document.
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