Dispute reimbursements Question???

[testaroo]

So I have a question about IRS reporting and I am aware of 200 transactions and 20K and that it includes all money received regardless of fees and refunds.

But what of Dispute reimbursements from Paypal?

I had an auction where the scam buyer did a chargeback and took back the money he sent.

But Paypal was nice enough to reimburse me the amount out of their own pocket after hearing my explanation with photographic evidence.

So anyone know if that amount is  included in the IRS reporting?

(What I mean is I know the original amount the scam buyer sent me is included in IRS report. I am asking if the same amount that paypal rebimbursed me on top of it is included or not?)

Thanks

[DPCreations]

Gross receipts would be the big total.

You would need to account for the refunds as a refund in your business accounting software and use when you complete your 1040-C .  All gross receipts (PayPal and others, whether reported on a 1099K or not) would be used.  Then you follow line by line to add expense details.

[testaroo]

But does paypal report that dispute amount to IRS?

The reason I ask is, I'm pulling up the 2016 financial summary and udner Sales Activity, I have:

Payments received: $XXXXX.XX

Then further down under Dispute Activity,

Dispute Reimbursements: $YYYYYY.YY

The problem is the "Payment Received" amount falls under 20K so I won' be getting a 1099K.

But if I add Dispute Reimbursements amount to the Payments Received then it pushes the total to over 20K.

So that's why I'm asking. Whether Dispute Reimbursements would be included in Paypal's 1099K calculation b/c it wasn't counted in Payments Received sum but is included as line item further below.

Thanks

[Whac-A-Mole]

Gross receipts -goods and services wil be in the annual summary on 1099 form.

You would have to take out chargeback,sales tax,dispute loss ,refund to buyer yourself,like the other said on the small business form,line 2.

You lost the dispute but Paypal reimburse you for the loss,it should be on the 1099 gross.

[DPCreations]

As long as you file your business taxes correctly and accurately what PayPal provides on the 1099K or if ti doesn't won't matter. Your accountant would make sure all of your PayPal transcations would be included in your filing and correctly.  Your gross receipts need to be reported wether or not you receive a 1099-K.