Anyone know if PayPal will correct 1099K INFO

jonniex · #1 03-25-2016

Just wondering if its worth pursuing this. I know its possible for a issuer to correct and reissue 1099K even if they are a couple years old, a tax adviser confirmed this is possible and legal to do. Does anyone know if paypal will do this?

I ran into a problem where I was forced to, with permission, use a friends info with paypal.

1099Ks were issued in my friends name and sent to the IRS but my friend did not earn this income.

I would like PayPal to now ideally reissue these 1099k with my company info and report this correction to the IRS

If I upgrade this personal paypal account to a business account with my LLC or sole proprietor EIN info, how likely would paypal go back and reissue these 1099K's with this new tax info so my friend does not have these tax documents in his name?

Does anyone else have experience with this?

phaz0rz · #2 03-25-2016

I say there's about a .01% chance of them letting you do that, honestly. Everything about what you're describing would sound fraudulent to them. Why in the world would you do business in someone else's name for a year, then want to report the income with a brand new EIN? That just doesn't make sense, and it's likely the way they'll see it.

Even if they are willing to reissue them, there probably isn't time for them to get it done by 4/15. It usually takes them weeks to review documents, so I'm assuming the case would be the same with this.

If you're going to keep using the account upgrade it to a business account now, attach an EIN, and get rid of the 3rd party's SSN.

MM78 · #3 03-25-2016

And it's stuff like this that we tell people NOT to use Friends/Family info....hope your friend made some money off all this.

jonniex · #4 03-25-2016

Quote:

Originally Posted by MM78

And it's stuff like this that we tell people NOT to use Friends/Family info....hope your friend made some money off all this.

I agree and learned my lesson. How do I proceed ?????

phaz0rz · #5 03-25-2016

Quote:

Originally Posted by jonniex

I agree and learned my lesson. How do I proceed ?????

Go to a tax accountant with your friend, find out what is owed on your profits, and give the money to your friend to give to the IRS.

What else can you do?

jeffweico · #6 03-25-2016

PayPal will not do this. They WILL do it going forward, but they will not go back and correct the 1099. Their position is that they had the information on file, which was verified as valid and that is what they are reporting.

I know this because I had a similar situation when the reporting first started. I called PayPal and begged, pleaded, threatened and attempted to bribe, but to no avail.

Give this information to your friend (or a tax accountant) and have him report it. You will have to pay whatever his taxes on the amount of profit are. It is a pain in the you know what, but there should be no repercussions unless your friend is receiving social security disability or some sort of other government assistance. Then it might be a problem.

MM78 · #7 03-25-2016

Quote:

Originally Posted by phaz0rz

Go to a tax accountant with your friend, find out what is owed on your profits, and give the money to your friend to give to the IRS.

What else can you do?

I was about to suggest the same......

unkown5454 · #8 03-26-2016

Quote:

Originally Posted by phaz0rz

Go to a tax accountant with your friend, find out what is owed on your profits, and give the money to your friend to give to the IRS.

What else can you do?

why do people struggle with this concept? it's a simple fix and you move on and change the game plan for next year.

instead people just sh*t their pants and act like the world is ending.

jeffweico · #9 03-26-2016

Quote:

Originally Posted by unkown5454

why do people struggle with this concept? it's a simple fix and you move on and change the game plan for next year.

instead people just sh*t their pants and act like the world is ending.

Well, you are right, but there is ONE circumstance which SHOULD scare you. That is if you used someone's SSN without their permission. If it was your Mom's, she will probably forgive you. But if you bought it from one of those darkweb places, you CAN get into quite a bit of trouble for that.

vogeltron · #10 03-28-2016

Quote:

Originally Posted by unkown5454

why do people struggle with this concept? it's a simple fix and you move on and change the game plan for next year.

instead people just sh*t their pants and act like the world is ending.

Unfortunately, some people have resorted to basic identity left. Using info that wasn't their's. I am sure this guys friend wants to kill him. Probably rightfully for being so careless.

phaz0rz · #11 03-29-2016

Quote:

Originally Posted by vogeltron

Unfortunately, some people have resorted to basic identity left. Using info that wasn't their's. I am sure this guys friend wants to kill him. Probably rightfully for being so careless.

A good (but not too smart) friend of mine created tax liabilities for his entire immediate family in 2015, against my advice. He read in an old copy of the Stealth Book to use friends and family's info so that's what he did, and he stuck with it. Ended up using like 5 SSN's which weren't his, and he now plans to ignore the 1099's that were sent out in his behalf.

The man's gonna get his whole family locked up. To anyone reading who's considering this route, DON'T DO IT.

GET AN EIN AND MANAGE YOUR BUSINESS(ES) PROPERLY!