I am curious about the PayPal business account. In the PayPal tax section PayPal states that if you are a merchant and you are paid more than $20,000 from sales and you have made 200 transactions then PayPal will send in a 1099-K to the IRS and distribute one to you. My question is, "what if you make less than that amount? How do you report that to the IRS without having a 1099-K? Do you just go through and add up all of the money received from your transactions? And you just list that amount where applicable? And the IRS will tax you accordingly?
Thank you in advance for anyone who can help.
