I read another post about this with a bunch of people saying they had PayPal credit that was paid off YEARS ago and some people who claim to have never received PayPal credit and never had a debt to begin with. I saw that a report of data breech was reported 12/6-12/8/2022 so maybe that has something to do with it. However, from an accountant's point of view (assuming whoever sent out these 1099s also sent them to the IRS, meaning you have to claim it as a tax payer), report the debt off the 1099-C BUT then file a form 982 for the exact amount of the debt but as a NEGATIVE. Form 982 basically states that you're not responsible for that debt. Therefore you're making the IRS happy by reporting that and they won't investigate your return since you reported everything, and at the same time you're not accounting that "paid debt" as income. It impacts you 0%. I really hope this helps even a little bit!
... View more