Account limitation due to refund payment made as goods and services

jormipex
Contributor
Contributor

On Feb 2nd, I received a refund on PayPal (PP) from a purchase I made on AliExpress using my credit card, not PP. The seller (KingSmith) said they couldn't refund the money to my credit card because they were in China and because it has been more than a certain amount of days since I had placed my order. So they instead refunded me via PP. However, when they tried to refund the money, they sent it as goods and services. Once I saw that, I refunded the money back to the seller and contacted both PP and them about the mistake. PP sent me a notification requesting me to provide my taxpayer ID, saying that since I had received money for sales of goods and services, my U.S. taxpayer information was necessary to be used to prepare my IRS Form 1099-K. I sent PP copies of the invoice from the item I bought and screenshots of the emails and chat conversations I had with the seller where they said they were going to refund me the money through PP. I called PP, sent several messages, and was informed that I could continue using my account normally. Today, however, I received an email from PP saying that they were adding limitations to my account--I cannot receive or request money. This means when KingSmith tries to refund my money again, they won't be able to. I'm not sure what else to do. I cannot provide my tax ID information since they will be using that to report to IRS that I'm using my PP account for business, which I am not. I've had my PP account since 2018, and this is the first time that I'm receiving money through it. Please help! Thank you in advance.

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