Has anyone had a mistaken Paypal goods/services payment made to them vs friends/family and had to deal with resolving it through the 1099/tax filing?
I was sent a Paypal payment for season tickets where I'm just being reimbursed face value of the tickets plus the $500/seat license/donation requirement per the specific seat location. The sender mistakenly did it as a "goods and services" transaction, which automatically triggered an IRS notification. Also, FWIW, the notation states "WVU tickets" (possibly a concern as that's "goods" per this morning's round of Paypal discussions.
I immediately contacted Paypal to try to get it canceled, corrected, etc. before ever accepting the funds. The first "specialist" fed me a bunch of lies about how it was going to be cleared up, reported to the IRS as a mistake, not be an ongoing tax issue, and that I would receive documentation (I requested) regarding the mistake and steps taken to correct.
It continued to show on my account, and I was charged a Paypal goods/services fee. A "supervisor" was able to reimburse the fee but clarified there was never a way for them to reverse or correct it re the IRS reporting, and I would be receiving a 1099 showing the funds as income. She suggested I contact my tax advisor. I don't have a tax advisor, as I'm not a business, and I'm able to handle my personal taxes myself.
The sender has been willing to assist in various ways, so this is not a complaint regarding the sender.
I have a few thoughts on how I might be able to manage this, but wondered if anyone could provide info based on their own knowledge or resolution(s) to this issue. Appreciate any thoughts or experiences.
I was sent a Paypal payment for season tickets where I'm just being reimbursed face value of the tickets plus the $500/seat license/donation requirement per the specific seat location. The sender mistakenly did it as a "goods and services" transaction, which automatically triggered an IRS notification. Also, FWIW, the notation states "WVU tickets" (possibly a concern as that's "goods" per this morning's round of Paypal discussions.
I immediately contacted Paypal to try to get it canceled, corrected, etc. before ever accepting the funds. The first "specialist" fed me a bunch of lies about how it was going to be cleared up, reported to the IRS as a mistake, not be an ongoing tax issue, and that I would receive documentation (I requested) regarding the mistake and steps taken to correct.
It continued to show on my account, and I was charged a Paypal goods/services fee. A "supervisor" was able to reimburse the fee but clarified there was never a way for them to reverse or correct it re the IRS reporting, and I would be receiving a 1099 showing the funds as income. She suggested I contact my tax advisor. I don't have a tax advisor, as I'm not a business, and I'm able to handle my personal taxes myself.
The sender has been willing to assist in various ways, so this is not a complaint regarding the sender.
I have a few thoughts on how I might be able to manage this, but wondered if anyone could provide info based on their own knowledge or resolution(s) to this issue. Appreciate any thoughts or experiences.
