I am a consumer, not a seller on Paypal. I received a 1099-k form from paypal. It turns out that I received a refund from kiwi for a flight that was
cancelled in 2020 due to COVID. Kiwi was supposed to wire the money directly to my bank. Instead, they paid it through Paypal who wired it to
my bank. Now Paypal insists it is payment for merchandise/services I sold. I spent more than 7 hours on the phone over three days trying to convithem that I am a customer, not a seller. The first reps who answered the phone each time read me a script explaining that they issue a 1099-k for for all sales over $600. I kept telling them the amount in question was not the result of a sale. It was a refund for merchandise I purchased and did not use, (the airplane tickets).
On a few of my calls, I got all the way through to a "Supervisor" in the Tax Department. Two of them said they understood the problem, and agreed
that the 1099-k form was issued in error. They both put me on hold while they spoke to their "Superiors," and told me the problem would be corrected.
They said they were starting a "Pick-up" number, and I would hear from the Tax Department on my email within 24 hours, and receive a hard copy of a corrected 1099-k tax form in the mail shortly.
24 hours after I spoke to each "Supervisor" in the Tax Department, I received an email with the same script read to me by the first Paypal reps I had talked to. I just said that if there were sales of over $600, they have to issue a 1099-K.
Two other times I got as far as talking to someone in the Tax Department, but when I asked to speak to a "Supervisor," the call was disconnected.
I just finished sending registered letters to five Executives at Paypal. Unfortunately, it was difficult to find the name of the executives on the web. Many lists were outdated. There were some articles that said that the acting CFO & SVP was out on medical leave, and it gave the name of the acting CFO & SVP.
I addressed each envelope to the name of the executive I found, with the addition of "(or any person acting in this capacity)."
I will give them about 2 weeks to respond. If I don't get a satisfactory answer, I will file a complaint with the BBB. That often results from some action, because they know many consumers check ratings there. There is also a local TV station that takes on consumer complaints. I will try that as well.
There's also the option of filing a fraud charge with the IRS and the Attorneys General in both my state and in Nevada where the Paypal Tax Department is located. If all else fails, and I have to pay tax on the amount, I will take Paypal to small claims court. It is very expensive for big companies to respond to small claims suits. They would have to send someone to the suer's state. If they lose, they would not only have to pay up the amount I'd sue for, but also my court costs.
I am good at solving my consumer issues. I once had a problem with a GE refrigerator and worked my way up the ladder to the President of GE. I got a new refrigerator.
