Paypal did the same thing to me for 2020. They issued a 1099-K under the individual social security number instead of corporate FEIN No. The PayPal account was established many years ago and at the time they required the social security number. I've since provided them with the IRS letter showing the corporate FEIN number as well as Article of Incorporation for the corporation. In return PayPal issued a new 1099-K for the same amount but this time under the corporations tax ID. I contacted PayPal and told them such correction is a (2) step process. Step (1) is to issue the 1099-K to the corrcet taxpayer, which they did. Step (2) is to issue a Corrected 1099-K to the original taxpayer (personal social number) with zero's in all amounts. This lets the IRS know that no income should be reported against this taxpayer ID. Paypal refused to issue the corrected 1099-K so basically now they have reported the same income for (2) different taxpayers. I contacted the IRS and they told me to report PayPay on form 3949-A. Paypal makes it extremely difficult to contact them and even when you contact them they usually are of no assistance. I am hoping filing form 3949-A results in penalties to Paypal.
... View more