THE IRS HAS TAKEN MY TRANSACTIONS VIA PAYPAL AND IDENTIFIED THEM AS TAXABLE INCOME


I had multiple transactions here and at US Audio Mart in 2019 and yesterday received a letter from the IRS stating the transactions were "Taxable Income" anyone else ever experience that with Paypal and now what?
Fighting the IRS is not something I look forward to!
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Showing 1 response by grannyring

PayPal also sent you a 1099 as the law requires them to if you have over 200 transactions and over $20,000 of proceeds. Both have to be true. PayPal does not mail the 1099, but you need to look online. Look under activities - statements - tax documents. If none are there, then PayPal did not generate one and the IRS did not receive one from PayPal. If the IRS has a 1099 from PayPal and your online account does not show one, then the IRS has asked for it outside the normal guidelines. 
The IRS is going after bigger fish as they don’t have the resources to go after 4 small transactions. I am sure your 1billion dollar business is the sole reason this is happening. The IRS may have asked PayPal for it as they are looking closer a folks they deem big fish.  
Just my thoughts based on what you have shared.