working capital reporting problem
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i tried contacting paypal through their email system, butbesides only allowing preset subjects (mine wasn't there) no mater what I did I got a form reply that had nothing to do with my issue. this form then said to 'reply to this email' if my question wan't answered. And of course doing so resulted in an instant email saying that that email address couldn't respond to questions, and it directed me back to the original web page to start the whole circular process again.
so in the vain hope that a paypal employee looks at these, here is my issue, which should affect anyone using paypal working capital:
Looking at the generated reports for this year, they are showing incorrect totals for sales. They are including transfers into our account from Working Capital as 'sales' instead of something like 'loan proceeds'. This is completely incorrect and will cause a problem (likely an audit) with the IRS if you continue to report these as 'sales', since your numbers will not match our tax returns.This is a big problem for everyone who uses Working Capital, and perhaps for Paypal since they will be giving the IRS bad information. Please confirm that this will be changed before the end of the year.

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Hello nocustomersrvc,
While PayPal Working Capital loan disbursements appear as sales in the generated reports, they will not be included as such in your business’s annual 1099K form from PayPal. You and the IRS will be presented with accurate information regarding your business’s PayPal sales revenue when the 1099k forms are generated.
I hope this helps answer your question and thank you for participating in the PayPal Community forum.
EJ
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I have found this to be not true. My 1099K from Paypal lists the Paypal Working Capital as sales income and therefore overstating the sales income i received from paypal payments. Someone over at Paypal really needs to look into this.

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