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Old 08-04-2020
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Default 1099k mismatch - W9 Request (Unique Situation)

Hi everyone, hopefully I can gain some feedback prior to calling Paypal. Otherwise I have to enter uncharted waters and see how this goes. Gulp. Been there before I know I will prevail again.

I received the mismatch W9 request as the title suggests. When going into my account details my business type was set as individual, I did not do this. I believe I may have selected sole proprietorship during the upgrade I know it is still the incorrect method but I never selected individual. (I changed it to partnership on my account as an update)

Important: My LLC is a single member disregarded entity owned by a Parent LLC which I own. On my articles of organization the sole owner is my PARENT company. It does not show my legal name. I did this on purpose to prevent issues like this from drawing a link. So, when filing my paperwork the legal owner is under my EIN of the parent company.

I say this because the 1099k I received has my personal name which is stealth on it. My only other Paypal business account when receiving 1099k always showed the business name on the 1099k. I have to imagine they sent my personal name to IRS with the EIN thinking it was a individual personally issued EIN? That is the only thing that makes sense to me.

I am going to call Paypal but I truly don't know the best course of action because I can't understand why it says its a mismatch. I just checked the legal business name of registry and it matches. The one idiotic mishap was I put the wrong zip code in filing with the state. So technically my zip code is incorrect that needs to get updated. But if they are only checking NAME and EIN it should match? From what I see it is only the NAME and EIN nothing else needs to match.

Now with the W9, I reviewed the information and I am a SINGLE MEMBER LLC, a disregarded entity OWNED by my Parent company. Therefore my SSN is not associated with this business creation. So I wouldn't put my SSN because I'm not even connected to business, right? Whenever I opened bank accounts this always added extra layers of security because I had to prove ownership of my parent company too, because I'm not directly connected to my subsidiary. Regardless I updated my account to partnership so I can lie myself out of that by saying its a partnership. Worst case I have to revisit this next year and maybe I don't even use Paypal next year. I'm just being transparent in the way I formed my business.

Any helpful guidance? I have been on this forum for a long time, I am not asking tax help. It is in reference too navigating this W9 and if truth has it they sent my information as a personal (individual) EIN it seems like this should be an easy fix?

Last edited by solefoodbk; 08-04-2020 at 01:07 AM.
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