You'll need to sign in or create an account to connect with an expert.
Yes, Paypal is doing something wrong. Paypal is doing a lot wrong.
They do not verify with the account owner which transactions are income to report.
They choose the figures and just send them to the IRS, without ANY verification of those figures.
Basically, they are guessing at what needs to be submitted.
My 2020 1099 from Paypal is completely INCORRECT.
Not even one figure they submitted to the IRS is right.
This has been reported by Sellers on Paypal for years. Paypal just doesn't care if they do it right, and that is fraudulent behavior and subjects their account holders to serious IRS violations.
Yes, that's what it says.
But what Paypal does is an entirely different thing.
Exactly! I received a 1099K form out of the blue and NEVER sold with PayPal or anyone else for that matter. It said I earned $6400 and did 47 transactions. I have spend HOURS on the phone with PayPal and no one seems to track the previous call. They have given me no tracking number and I am about to call the news media and the IRS. Each time I call, I get more and more information. I learned that there were a lot of other people who also were receiving the same type of letters in the mail that I did. The scary thing is it looks so legit. Has the last four of my social, my address, etc. Has anyone else faced the same thing? I am VERY frustrated. 😠
I also got a 1099-K out of the blue that says I received over $46k! I sold a few personal items on ebay and received less than $1k. They've removed every capability to speak with a human at Paypal unless they call you. Even customer service people responding to message center keep sending me old links to "Call Us" that don't work! Even the customer service reps don't realize that Paypal has disabled all the "Call Us" links that generate a one-time passcode. It's also impossible to reach a human or leave a message when you call them. All voicemail trees end with information that directs you to contact them online. I received a response in the message center and a case has been created, but nothing has been done for weeks on that case. I've also sent a certified letter, and no contact from that either. I did receive a call from an empathetic foreign customer service rep that escalated the case, but still nothing. I'm about ready to start filing complaints with every state and federal agency that will listen, including the FTC and state attorney general. I do NOT want the IRS to scrutinize my return, and I do NOT owe taxes on $46k!
You need to respond to the IRS and explain that the form is in error and continue to work with PayPal to get it corrected. That is all you can do for now.
Hello. Did this ever get resolved? That's a crazy amount of money ey and how do you prove this to the IRS, especially when no one will help. Did you report them? I have incorrect information on my PayPal as well, but it's only a few hundred dred dollars. Still, it is definitely not right
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
leahcate1976
New Member
jestas34
New Member
emilymeganmarsha
New Member
hildelisah
New Member
smonique44
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.