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Received Paypal 1099K without a SS# on it
 

Hi all,

I have not been suspended from ebay yet, but I have multiple accounts with multiple violations and am preparing myself with this great Stealth info for when I need it. Before I knew about all this, I created a Paypal account with a ⊗⊗⊗⊗ name and connected a bank account that is in my real name. This was mostly because I just didn't want strangers over the internet (my ebay customers) having my real details. That was my concern at the time. The name discrepancy has never come up because I have transferred all the funds to another Paypal account that is in my real name in order to withdraw.

Now, I passed the $20k receipts mark this year on the ⊗⊗⊗⊗ name account and Paypal sent me a 1099k. The 1099k has no SS# or EIN# ect... And is in the name of a person that does not exist. There has never been a SS# associated with the account. I do however have a bank account attached that has my real name on it, just never used it. I linked it just because Paypal doesn't let you do ANYTHING unless you have a bank account or credit card attached.

I'm not sure what to do about reporting this money ( I'll make sure going forward that I don't pass this $20k/200 sales mark again on one account!)

I am left with a 1099k in a ⊗⊗⊗⊗ name with no SS#

How can Paypal even send a 1099k to the IRS without a SS#/TIN#/EIN#?

It's not like I can add it to my return in my real name.

Any thoughts?

Re: Received Paypal 1099K without a SS# on it
 

I understand you are new.

Have you read one thread on 1099K & paypal?

If so, did you not notice users are told to seek professional tax advice.

You find yourself a good tax professional, discuss matters with him. On your behalf he will file taxes for the money you made. IRS likes amounts, not names.

You can not under any circumstances ignore this. You have to takr action to deal with the matter.
:mod:

Re: Received Paypal 1099K without a SS# on it
 

You can pay taxes on that 1099 without a problem. The IRS gladly takes your money.

Re: Received Paypal 1099K without a SS# on it
 

I totally agree with Greenie on this one. Ask a tax professional what they would advise.

But one thing I CAN tell you is this... If you are proactive and take care of this and pay the tax, then it should not be any big deal with the IRS. They don't really go after taxpayers who want to do the right thing just because some technical mistake was made. But if THEY end up finding it and coming after YOU, then you are potentially in for a world of hurt.

And you are probably not looking at a lot of money owed anyway. There is a HUGE MISCONCEPTION going around that if you hit the $20,000 mark, that you owe taxes on $20,000 - but that is false! You only owe taxes on your PROFITS. If your profit margin is 10%, you would owe taxes on $2,000, NOT on $20,000. BIG DIFFERENCE.

Of course, how much the bill is would depend on your tax bracket.