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! 

[HeatherRJ]

At Least, they should offer a one year subscription for identity theft protection to help their customers. After all, we are the ones who keep them in business.

[bnlong3]

I have received the exact same thing and I've never had credit with PayPal. It is really concerning that they have so much information on me.

[Grimlock2]

Just received a 1099-C from PayPal Europe (Luxembourg) cancelling debt (PayPal Credit) for a debt I know nothing about. My credit is locked and there is nothing on my credit report to indicate this debt is mine. Tried contacting PayPal for assistance but got the run around (transferred 4 times) and eventually looped back to where I started. Also left a voice message for a call back regarding this tax form but have not received a call. Has anyone else had this experience and how did you get it resolved?

[Kiyahra]

I just got the same letter and it’s a SCAM. I have NEVER had a credit account with PayPal. I’m very upset by this, as the last 4 digits of my Social Security number are on it. This has obviously been going on for a long time and PayPal doesn’t care. Years. Look at all the other posts there have been. I’m reporting this everywhere I can.

[TessaD1970]

I just got one today as well!!! I don't owe PayPal any money!!! Never even applied for PayPal credit. They have my freaking social, and I'm furious!!! I don't know what to do, either. I understand that is is a scam, but I really don't like that they have my info like that!!!

[Kiyahra]

I understand Tessa! I feel the same way! I’m going to research tomorrow. So upset about the SSN. I don’t know what we can do about that, except monitor our credit 😞 I’m honestly stressing about the fact they got it. But I’m going to contact every outlet possible! Make sure to keep an eye on your credit report!

[Grimlock2]

I put a freeze on my credit some time ago.  It prevents any new accounts from being opened and it is pretty easy to do at the credit bureau web sites. You can temporarily remove the freeze whenever you want to apply for new credit at any time.  My credit has been frozen for many years so I know for sure this is fake as there are no delinquencies and no collections on my history.  I have a feeling someone used my name (minus SSA) to obtain a loan and since it defaulted it went to collections who then assigned a known SS number - namely mine, in order to write off the debt from the company balance sheets and lower their tax liabilities that way.  I pulled my 3 reports just now from the free credit report web site and they are showing the freeze and everything in them looks fine.  The issue I have is that the 1099-C will go to the IRS who will then consider this as taxable income and try to tax me on the amount.  I am still waiting on PayPal to call me - I left my details with the contact number they have for reporting 1099-C issues. I look forward to an interesting conversation at some point.

[TessaD1970]

Thankfully, it's something I do all the time. I have really good credit, so I can at least dispute.

[MoniqueAnneMc]

I just received the same things and am unsure what to do next.

[Josephpaul]

Same here, 1099-C. Just starting using Paypal in December 2022. Credit is locked and never had a credit account with Paypal. The 1099-C appears legit. Try explaining this to IRS if you don't claim this on your return. Definitely will be canceling Paypal. They need to be sued !