I would call PayPal and be very stern with them. It appears they have falsely issued the 1099 and they need to riscind it otherwise it will cause you no end of paperwork pain. This is there mistake and they need to fix it. I suspect you will need to elevate this probably up a few levels.
As noted the IRS now possibly thinks this is income and you are looking at big numbers when all your stuff is mixed.
PayPal appears to be covering their asses by screwing you. It is over 20K and 200 transactions. One could even say they are violating your confidentiality as they appear to have no legal reason to report this data.
As noted the IRS now possibly thinks this is income and you are looking at big numbers when all your stuff is mixed.
PayPal appears to be covering their asses by screwing you. It is over 20K and 200 transactions. One could even say they are violating your confidentiality as they appear to have no legal reason to report this data.