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1099's from Paypal

rsmath

Active member
Nov 8, 2008
6,084
IRS website says that 1099 is due on January 31st. I ASSume that is a postmark date, not a date that you have to have it in your mailbox by since 1099 mailers cannot guarantee the USPS will deliver a letter in a timely fashion.

It even appears there may be a new line on the Schedule C long form for you to put that amount if you get a 1099 for your paypal activity.
 

rsmath

Active member
Nov 8, 2008
6,084
boomo said:
ill still believe when i see it.
I believe it's happening. On the personal income tax schedule C, there is a question on there about whether you have any activity that requires a 1099 to be sent out (generated from the business to a vendor or other third party) and if "yes" is checked, it is asked if you have sent out those 1099's.
I'm sure tax returns for companies such as ebay (paypal) have similar language and that if you answer it wrong (you have activity yet check no), it gives the IRS a hook to take legal action against you for not sending out 1099's.

What I have to see to believe is if those who get the 1099's this year from Paypal will be audited for recent tax years. When there is smoke, there usually is fire... it's hard to think if one gets a 1099 from paypal this year that their business grew large in just one year and hasn't been that way for years with non-disclosure of income in past years.
 

rsmath

Active member
Nov 8, 2008
6,084
brauny said:
What will they send and will it be snail mail or emailed?
paypal is sending out 1099-K's if you meet the number of transactions _and_ dollar volume thresholds and you should expect it in the USPS mail (probably postmarked Jan 31st or so to meet the IRS deadline).

paypal may email it to you as a heads up but usually tax things like that also get USPS mailed as a followup to an email.
 

RandomH

Active member
rsmath said:
brauny said:
What will they send and will it be snail mail or emailed?
paypal is sending out 1099-K's if you meet the number of transactions _and_ dollar volume thresholds and you should expect it in the USPS mail (probably postmarked Jan 31st or so to meet the IRS deadline).

paypal may email it to you as a heads up but usually tax things like that also get USPS mailed as a followup to an email.
What are those numbers and $?
 

rsmath

Active member
Nov 8, 2008
6,084
200 transactions and $20,000 are the numbers I've seen reported in various articles. People are even being asked for their tax ID info if they haven't exceeded those thresholds if Paypal thinks it is likely to happen but they claim they won't file any 1099-K's unless the thresholds are both exceeded.
 

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