1099K Question

[wavingkitty]

Greetings All:

Small seller here, selling mostly downsized items & other unwanted household items. The question I have is about the new 2022 tax law if selling over $600 and the issuing of 1099K forms to people that do sell over the amount:

PP has stated in 2022 they will issue a 1099K for third party transactions over $600 & so have some selling sites said they will issue them as well. If one uses PP for third party transactions for their sales on a site that issues a 1099K, won't this result in a seller getting duplicate 1099K info reported for the same sales?

[PayPal_Olivia]

Hi @wavingkitty, 

Thank you for your post and welcome to the community!

It is possible that you will get duplicate 1099Ks if the other sites are also issuing them for the same transactions. PayPal is required to issue a 1099K at that threshold.  I regret that PayPal is unable to provide guidance on how specifically to report the income when you file. If you have questions that other members of the community are also unable to chime in on here, you can always contact the IRS directly, or consult a tax professional.

I'm sorry I can't provide more clarity, but I hope my suggestion helps!

Olivia

[FredGwynn]

PayPal should have a Class Action files against them, for their false 1099K reporting activity, and the waste of time PayPal creates - by refusing to fix and issue amended and corrected 1099K, for obvious transaction errors.   

I have spent over 4 hrs on the phone with PayPal, as recently as today, to have PayPal re-issue their incorrect 1099K, but they REFUSE!!!  When the original payment activity was received in error, and PayPal can see that the original payment receipt activity was received in error - PayPal still refuses to correct their mistakenly issued 1099K.

This is criminal behavior on PayPal's part, given the down the line ramifications PayPal's mistakenly issued 1099K creates, and PayPal's unprofessional refusal to fix a 1099K error!

Financial Institutions that actually care about their Customers, will work with their customers to fix 1099K errors - NOT PAYPAL!!

Please reach out to me for any Lawyer interested in developing a Class Action.

[wavingkitty]

If you are going to hijack a thread for a rant, at least answer the question....