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Paypal sent tax info to IRS, but IRS says they didn't receive anything
 

So I went to an accountant and showed them the tax information paypal sent me and sent the IRS.

They called the IRS to find out exactly what information they have.

Turns out, they have nothing. My paypal has my SS number, but also an EIN number. i have NO idea where paypal would have even gotten an EIN number from. I do not have one, but paypal seems to have one for me.

So now, I'm not sure what to do.

Re: Paypal sent tax info to IRS, but IRS says they didn't receive anything
 

so if the IRS has no info, what is the problem?

Just do accounting as usual. The 1099K really does not effect you or your accountant in any way.

Re: Paypal sent tax info to IRS, but IRS says they didn't receive anything
 

PP has your SSN? Hmm

Re: Paypal sent tax info to IRS, but IRS says they didn't receive anything
 

The EIN have to be unused right? can you have more than 10 and paypal will never see it's you? just like with bank accounts just more expensive, am I right?
As long as you supply them an EIN they don't need any other doc's like bills,invoices etc..?

Re: Paypal sent tax info to IRS, but IRS says they didn't receive anything
 

Look, please do not take a thread off topic with these questions.

The sensible reply is that even with supplying EINs etc, paypal always has the right to ask for invoices.

Re: Paypal sent tax info to IRS, but IRS says they didn't receive anything
 

I asked it here and didn't open a new thread because I think the answers to my questions might also help James.

Re: Paypal sent tax info to IRS, but IRS says they didn't receive anything
 

It's a legit account, so yes. Not worried there

Re: Paypal sent tax info to IRS, but IRS says they didn't receive anything
 

I"m going to be starting up an S corp, so I plan to have everything legitimate for this year.

But until then, I'm just curious what the IRS will do with the info they have. I still have no clue what EIN they are using and where they got it from. Can you just make up a number when signing up for paypal? Is that what I did oh so many years ago?

I mean, will the IRS go to paypal and ask them who I am? If i ignore the 1099K, I don't want to be bitten in the ass later on.

Re: Paypal sent tax info to IRS, but IRS says they didn't receive anything
 

Yes, unused. Paypal will never see who you are. And yes, much more expensive, because you have to setup a business. EBAY can still ask for invoices if they so choose.

Re: Paypal sent tax info to IRS, but IRS says they didn't receive anything
 

Sounds like a couple issues will be instantly resolved when you upgrade to business and add an EIN.
IF this is a paypal friendly account, you can call paypal and chat with them about options. They will tell you to make a new account and leave this one.
If you go this route, I STRONGLY suggest going the stealth route and wait until paypal demands on the second request for tax info and then upgrade. This will keep it off your SS number and just business name/EIN.

If this is 100% stealth, when you UPGRADE to business ALL old info is irrelevant and PayPal will report to whatever NEW info you give them. Even if it is on December 30th.

Paypal is not going to ask the IRS who you are. To my understanding it is impossible to do so anyways. Basically paypal/amazon etc... can ask "Is this info accurate" with a YES or NO answer.

Re: Paypal sent tax info to IRS, but IRS says they didn't receive anything
 

What I mean, was if the IRS will ask paypal who I am. I received an email 6 months ago from paypal

So I changed the business name on my account, to my personal name. And they stopped bothering me. I don't know why Paypal asked me this so late in the year. Perhaps it was from the previous year? I don't know.

I have a business account right now by the way.

I can't start a new paypal ( I don't think?) because they limits would be just way too low. I gross $8k a month.

So why would paypal tell me to leave this account? There is an option to change the EIN on it. It is a good account, but I still don't want to risk calling in and asking about it, just in case. Not yet at least.