1099-C

[ccjpol]

I received a 1099-C from PayPal Credit today.  After researching myself, I confirmed what I already knew, that I hadn't even USED my credit account in over two years, and the last time I accessed it at all was to pay it in full--again, over two years ago.  I am very upset about this because I work in finance, and anything like this that WAS actually reported to the IRS (whether incorrect or not) would be a real problem for me.  There is a phone number for questions, however, it goes to a voice mail.  I left only my name and phone number.  Further research shows that there are a large number of people who have received this, telling me that PayPal has had yet another data breach.  This is very upsetting, and I don't understand why PayPal doesn't have better data security, this has happened several times with PayPal accounts! 

[Urmama]

I will be contacting the IRS & will follow up. But I contacted PayPal today (they’re direct # not the phone # on the 1099-C.) But the PP rep said it is correct because BML accounts were sold to PayPal in May of 2019. Since FCC passed a new regulation in 2022 PayPal had to send out the 1099s for all transferred/bought accounts. I paid off my PayPal in 2021, so to me, having to claim the charge off is fraudulent no matter what. I paid my bill, did not cancel the debt and it was in prior years not in 2022. The crazy thing is the phone # on the document pulls up as a scam.

[Omegajb]

I got the same 1099-C claiming it was for a debt discharge which never happened. The sketchy thing is the phone number on the form is the same number on PayPal's help page but it's just a recorded message saying to leave my account and other personal information. That's a scam. 

If eligible, you can access your Form 1099-K and 1099-INT from your PayPal account around January 31 and your Crypto Gains and Losses Statement around February 15. You’ll receive an email from us once any tax forms have been posted, along with instructions on how to view them. Personal account holders, please go to the new PayPal Statements & Tax Center. Business account holders, please go to your Tax Statement Page. For 1099C PayPal Credit questions (box 4 of your tax form), please call[Removed. Phone #s not permitted]

[psjofors]

So I got this 1099 as well and do not have any debt at PayPal so this is obviously a scam. As long as it is sent out in a phishing attempt, I can ignore it, but if this was reported to the IRS (why would they do that?) it will affect how much tax I pay. Anyone knows how to contact PayPal?

[PayPal_Olivia · Accepted solution]

Hi @HeatherRJ, @Tiff1112, @air2023, @CampC2C, @Dungey22, @SeanMarcel, @Urmama, @Omegajb, and @Temp20230201B,

Thank you all for your posts in the Community Forum, and welcome or welcome back!

I'm sorry to hear that there was confusion regarding a 1099-C. There was an error that caused the documents to have the main Customer Service number instead of the appropriate number for the group that services questions relating to the debt cancellation, but other than that, the numbers listed in this linked article about 1099-Cs are the correct ways to contact for any corrections or to report that the debt is not yours.

I hope this helps!

Olivia

[Omegajb]

Yeah, there's a zero percent chance I'm going to leave my account number and other personal information on what sounds like an answering machine. If PayPal refuses to even have an option to speak to a live person, it's time to close my account. I've already contacted my state Attorney General and filed a complaint with them.

[oldschool2023]

My wife does not have a paypal account and never did.She got the Luxembourg 1099c.What is being done?This has class action lawsuit writen all over it.Does this go further than just paypal?What other companies does paypal own?Not Happy

[Kiyahra]

I was thinking the same about the class action lawsuit, count me in if that happens.

[bnlong3]

Me too!

[ccjpol]

This is  not the first time PayPal has had a serious data breach.  There is a real problem here and I think I will have to cancel my account if this is not straightened out, and QUICK.  To top it off, I did manage to speak to a person at PayPal...she was rude and snarky, acted like I was making a big deal out of nothing, and did not offer any kind of follow up options!  Mine was not in Europe, I am in the US, and I have confirmation from PayPal that I have not had any dealings with them for over two years, and at that time it was just to make a payment (which paid off in full).  I was never late, never reneged on any amount, and have had a zero balance for over two years.  Which, once again, means that this was another data breach from PayPal, with a bogus number that apparently the criminals thought people would leave account numbers on that they could use them to purchase items.  If PayPal at least took responsibility for this, offered some kind of resolution, it would be one thing, but the rudeness and total lack of interest or concern is unforgivable.  If someone does a class action...I'M IN!

[Kiyahra]

Received one today. I am also very upset that my SSN last 4 are also on here. This has been going on for YEARS and PayPal doesn’t care. Read up on the older posts. I’m reporting this fraud everywhere I can. Angry.