1099-C

[ccjpol]

I received a 1099-C from PayPal Credit today.  After researching myself, I confirmed what I already knew, that I hadn't even USED my credit account in over two years, and the last time I accessed it at all was to pay it in full--again, over two years ago.  I am very upset about this because I work in finance, and anything like this that WAS actually reported to the IRS (whether incorrect or not) would be a real problem for me.  There is a phone number for questions, however, it goes to a voice mail.  I left only my name and phone number.  Further research shows that there are a large number of people who have received this, telling me that PayPal has had yet another data breach.  This is very upsetting, and I don't understand why PayPal doesn't have better data security, this has happened several times with PayPal accounts! 

[Grimlock2]

Yet another day without a call back from the 1099-c help line.

Any one else experience this?

[Vansi08]

I just received 1099-C from Paypal (Europe) - cancellation of debt but I never borrowed money or used Paypal credit. What do I do? I am worried cause they have the SS number. I have read that people are getting this and I am on the same boat that have never borrowed anything or used credit with paypal.

 What do I do? Is this a scam?

[PayPal_JonK]

Hello @Vansi08, 

Welcome to the PayPal Community! I'm sorry to hear there's some confusion regarding a 1099-c you've received. I would recommend contacting the relevant support teams with the information in this Help Center article: What is a Form 1099-C?

They should be able to provide you the necessary details regarding that debt cancellation. My apologies for any inconvenience this may have caused, 

 - Jon K

[zuver2]

1099c

[Fthomas817]

Received a 1099-C in the mail for a debt that I never had. Called the company number on 21 Feb and received a call back this morning 22 Feb. Call took less than 5 minutes. She could not explain why I received the form, but stated she would submit the information to the fraud team to find out why I received the form. Also stated that I would receive a corrected 1099 and they would also report it to the IRS to have the form voided. Still curious how I received this form with my info on it being that I don't have any debt with anyone except a car note. Will update once I hear back from them. She told me not to file this form on my taxes.

[morganaecampo]

I read another post about this with a bunch of people saying they had PayPal credit that was paid off YEARS ago and some people who claim to have never received PayPal credit and never had a debt to begin with. I saw that a report of data breech was reported 12/6-12/8/2022 so maybe that has something to do with it. However, from an accountant's point of view (assuming whoever sent out these 1099s also sent them to the IRS, meaning you have to claim it as a tax payer), report the debt off the 1099-C BUT then file a form 982 for the exact amount of the debt but as a NEGATIVE. Form 982 basically states that you're not responsible for that debt. Therefore you're making the IRS happy by reporting that and they won't investigate your return since you reported everything, and at the same time you're not accounting that "paid debt" as income. It impacts you 0%. I really hope this helps even a little bit!

[Fthomas817]

Sorry "No Can Do". That would mean that I would have to lie on my tax return. I have never had any sort of credit/credit card with that company. And since the IRS won't answer their phones I am filing my taxes without claiming that amount of money. I would rather the IRS contact me about me not filing that info than to have them contact me stating that I lied. I have a PTIN number and don't want to risk that either. Thanks for the info though.

[morganaecampo]

Understandable. It’s not illegal to file the form. But if you don’t put the 1099-C in return, what usually happens is the IRS immediately flags your return to say “Hey, this was filed with the IRS however you failed to claim it.” Then I imagine you would have to get proof, probably some kind of correspondence, from PayPal to say it’s a fraudulent tax form. Then it would take months and months to figure everything out. So that’s why I suggested the 982 form. It’s legal and releases the “debt that was paid”. We’ve done this for several clients for a similar reason (it wasn’t with PayPal) and haven’t had any issues with it. It is true that the “debt paid” is not your responsibility and the 982 tells the IRS that is indeed not your responsibility. I obviously respect your choice in what to do. I was just hoping to give you a viable idea. Good luck to you! 🙂

[Fthomas817]

Thanks. I will seriously consider it then.

[11715KB]

Has anybody else received A1099C that is not valid and send to an address that you haven't lived at ever but you lived in that state 20 years ago and it's labeled BILLmelater and also has your personal information