1099K

[Kingshipmag]

Paypal submitted a 1099K for transactions that should have been friends and family. They will not make the correction after many attempts to call and message them. They can careless that we are being taxed on transactions that were not income. It is so disappointing that they have the power to make simple corrections or even write a letter stating that they can clearly see that the transactions were between husband and wife and they will not do it. We are left being taxed for income that was not income. I am going to have to get a lawyer to advocate for us. Has anyone else experienced this?

[PayPal_Meghan]

Hello @Kingshipmag, 

Welcome to the PayPal Community Forum! 

I'm sorry to hear that your 1099K includes transactions that were intended to be sent as Friends & Family, even though they were marked as Goods & Services. PayPal is required to report all transactions marked as Goods & Services. When filing your taxes, I recommend creating an Activity Download that includes all transactions and presenting the document to your tax professional. They may be able to help you determine if any adjustments can be made with the additional information. 

I hope this helps; have a beautiful week! 

- Meghan

[jjc3]

HI Megan - Should I call my attorney or will PayPal do the right and fix their errors on my 1099K? Please advise, should take PayPal 5 minutes to solve this but if they'd prefer the legal fees I'll make the call.

[PayPal_Ayesha]

Hello @jjc3,

Welcome to PayPal Community Forum and thank you for posting!

I'm sorry to hear that you're having these issues with your 1099-K tax document. I understand how frustrating this would be. Here's the Help Center Article to request for correction. If you need any help, I suggest contacting PayPal Customer Support Team to make changes. To contact our Customer Support, please click on 'Contact' at the bottom of any PayPal website page to view available options. 

Regards,

Ayesha

[jjc3]

Hi Ayesha,

I called customer service twice and they told me under no circumstances would PayPal change the incorrect 1099K they generated. I wrote this in my post which you obviously didn't read. Your response also contained a link to a worthless "help" document which doesn't correspond to anything presented on my screen. See screenshot and tell me exactly what to do from there since the only option is to download and the other report I suggested days ago and has been spinning endlessly in your worthless software.

I have passed your response along to my attorney so he is able to see that PayPal continues to give me the run around and fails to provide any means to correct their error. I will also be alerting multiple consumer protection agencies about what is going on at PayPal.

Jacob

[skier303]

I had them holding $460.62 from stubhub under the tax id reason. I had my lawyer contact them and they collapsed like a house of card. funds were released and none of the customer service agents understand how this could of happened, paypal has there employees so convinced that they are correct they will even keep saying the lies. so sad that you have to do this when the law is on your side.

[jjc3]

Thanks so much for the heads up about this. I figured calling a lawyer was the only way to get a company as bad as PayPal to do the right thing. I just reached out this morning with the same issue and got the same song and dance. I will give PayPal a day or so to do the right thing before unleashing my attorney on them. Shame since I've been a customer for over 10 years and I will definitely be closing my PayPal account after my lawyer forces them to make my 1099K right.

[PayPal_JonK]

Hi @jjc3, 

I can understand how this must be a bit of frustrating situation. I'm sorry to hear about your experience contacting our Customer Support as well. I would first recommend waiting for your Reconciliation Report to complete downloading before reaching out again. That way you can find where the disconnect / incorrect reporting amount is. However, if after reviewing the Reconciliation Report, you find the transactions in question were duplicated Zettle transactions, when you contact our Customer Support, let them know your 1099k is being affected by a known issue. If they are not duplicated Zettle transactions, I can confirm we are not reporting any other known 1099k issues that would generate an incorrect amount. 

Please keep in mind they will not request a correction for a 1099k for transactions that encounter fees, refunds, currency exchange losses, etc. PayPal is required to report the total gross amount of payments received for goods and services which can include, but are not limited to:

• Amounts from selling personal items at a loss
• Refunded amounts
• Processing fees

Normally, when a request is opened to review the 1099k, the specific transactions in question need to be reported along with it. That way they know specifically what to look for. I'm sorry you would have to contact them again. If they state they can not submit a request to review / update the 1099k, you can point them to this article: What if the amount reported on my Form 1099-K is incorrect? (I know we've provided that previously, but I didn't want you to have to go searching for it again.)

I hope that helps clear things up a bit. Best wishes, 

 - Jon K