Paypal made a mistake on my 1099-k, seeking advice on how to fix!

[sgong33]

A bit desperate here as paypal customer service has been no help.

The gist of my problem is paypal reported a 1099-k (31 transactions for $4,424) to the IRS for 2015. They reported this because they accidentally tagged income from my 501c3 business account to my personal SSN. I got the 501c3 1099k fixed however the IRS is still now saying i owe taxes/self employment on my personal 1099k (that never should have been sent but was because of the mistake on my 501c3). I called the IRS and explained that the money from 2015 was from selling used items when we moved homes but they said I still need to report it. I also called PayPal looking for guidance and they said they would "zero out my 1099k for 2015" and send it to me via mail... well sure enough a week has passed and they sent me the wrong 1099k and im going in circles trying to get the new form.

So my questions are:

1. Do I owe taxes on the sale of my used personal goods in 2015/How do i report and file it? (the IRS is currently considering it capital gains and self employment). I thought all i need to do was write a letter to the IRS stating that these were garage sale items.

2. Will a zeroed out 1099k form from paypal even help? Since they already reported that money to the IRS, do i have to file/explain? or do i wait for the zeroed out form and just tell the IRS "it was a mistake, heres the new 1099k showing zero."

There is a serious disconnect with paypal customer service. Their system of "you cant speak to the person who can help you, but ill put in a ticket and have a nice day" creates a serious gap in getting the proper help provided.

[wuyaqi55]

I'm wondering if you are able to talk to their customer service? I tried many times but they never picked up.

[Rickcin]

I’ve finally spoke to a live person who was totally useless! They couldn’t speak English and had no clue whatsoever, she was zero help.  

Thinking about dumping PayPal since they are actually costing me money with their incompetence since they more than doubled what should be reported on my 1099. 

[AleBouqcakes]

I had a similar/same issue. In may case, I noticed PayPal only included payment card/third party payment transactions. That is, only those where Paypal charged a fee.

[Rickcin]

I also have a problem with my 1099 that PayPal has come up with and although I’ve notified them several times, I’m still not nowhere with this and it’s still not correct. The customer support is horrible and I’ve spent over an hour on the phone with a person who could barely speak English and was totally clueless!

This is very upsetting and I will not continue to use their service unless they can resolve my issue with the correct information!

[rainbomg]

I too am freaking out. I’ve received a notice from the IRS that I owe back taxes and fees galore for $120k in sales that PayPal reported to them for 2017, I guess under my social? I’ve searched my PayPal accounts, (I have two bc I didn’t know what I was doing and I set up an extra one after I’d already had one that I never used for years, both personal accounts and I’d only received a total of $5 on one of them from a cash back thing on Retailmenot, I never used these accounts and they didn’t show they were in use either, it’s all 0s for 2017 on both) I can’t find any information on this. The irs says I have 2 weeks to fix it, and that PayPal has to submit to them corrected 1099 that shows 0 for me for this year, but ffs I cannot get help. I’ve been going around in circles for a month and there is NOWHERE to email or submit this to. It’s just incredibly frustrating loops that stick me back into the same useless page that wants me to pick a transaction (uh, there isn’t one!) or go to help, then help sends me to the same “pick a transaction” wall and the message center insists on forcing the same path, it’s truly crazy making to do this and I’m going to have no recourse in like 10 days from officially owing $60k in taxes. 
I never received this money, so it can’t have had any of my real info attached, and I never sold anything to earn any money, and my listed PayPal account doesn’t show this money. Is there a freakin email address for someone in the fraud department or something that I can get to help me or give me the info on this fake account? The irs says I have to prove it? 

[ivoryguy36]

Add me to the list.  1099-K for $46k.  Obviously fraud.  Impossible to reach a human.  I complained through the message center, and got a case opened but no action.  I sent a certified letter to Paypal and no action.  I keep sending follow up requests in message center, and did speak to an empathetic foreigner who escalated the ticket, but still no action weeks later.  I'm about to file complaints with the state attorney general's office and the FTC and anyone else who will listen!

[rainbomg]

I was told mine was escalated too, but to whom? This is so upsetting.

[wuyaqi55]

I've been waiting half a month for hearing back on my case. I kept reaching out to them but no one picks up my call. I tried to talk through the message center and they just set up a ticket then nothing heard back, and nowhere to track my ticket!!  OMG, SOOOOOO... FRUSTRATING !!

[ivoryguy36]

I finally got a reply yesterday that they have verified fraudulent activity and a corrected 1099-K has been issued.  Should arrive two weeks.  I had sent a certified letter on Feb. 6th demanding action or I would retain an attorney to start legal proceedings.  Two days ago I filed complaints with my state attorney general and with the government consumer finance protection bureau at consumerfinance.gov.  I think it was the certified letter that got action, personally.  I don't think the online claims had time to reach them.  

[rcarl616]

I have a similar problem: 1099-K for 2020 for $4000+ but no activity on my part that would generate income. PP says there is a duplicate acct in my name so very possibly fraud is involved. Let us know when/if you get a revised 1099 and if you are satisfied with it.