Goods and services vs. Friends and family

[Jesreid05]

PayPal refuses to correct transactions that were sent as goods and services b it should have been friends and family, what are the tax consequences for this and does anyone else want to join a class action lawsuit?

[kernowlass]

@Jesreid05 

So someone used the wrong option to send you funds and its Paypals fault?  🙄

If you were not selling anything then just refund the payments so your mate or family member can use the correct option however your fee won't be returned as part of any refund made.

[Jesreid05]

@kernowlass 

Hey! That was really rude and maybe you’re  not so bright. So I will elaborate so you can adjust your oversimplified take on my post. I called PayPal at the time of the transaction and the person I spoke with simply refunded the fee, did not suggest refunding payment, and having them resend it and I thought it was handled/corrected at that time. That was in October and the amount was $1000, so now I’ve gotten a 1099 k from PayPal which they’ve also sent to the irs. I called them to address the issue again and they say they can’t correct it and I basically have to just either come up with the 1000 now to send back to them (which I don’t have) or operate as if I sold a good or service and pay taxes on the money as if it were income. It is unreasonable that they would have someone who is clearly incompetent handle the issue in the first place and also unreasonable that this issue cannot be corrected on their end. It’s also unreasonable that someone sending you money has the ability to essentially report a payment made to you as income for you and you as the owner of the account have no ability to remove the option of someone sending you a payment for goods and services if you do not use PayPal to sell goods and services. Good day, troll. Does anyone else have anything helpful to add?

[kernowlass]

@Jesreid05 

I think its rude to threaten a class action lawsuit on a company for a simple error on yours and the senders side of the transaction.

Why would someone need to tell you to refund, Paypal kindly refunded your fee so you could issue a full refund without any loss to yourself. 

So why not just do that?

If the sender of your payment was a family member or mate then surely that would be sorted out between yourselves by a quick refund. OR was it not a gift payment and was really a goods/services payment?

As you didn't bother to refund then it stayed as a goods/services payment causing you issues with 1099k. Paypal can't ''change'' a payment from one type to another after someone has sent it.

Calling someone names because you don't like their opinion is a tad juvenile.

[PayPal_Olivia]

Hi @Jesreid05 and @kernowlass, 

Thank you both for your posts, participation, and answers!

I have locked this thread. Please review the Community Rules and Guidelines in order to ensure that the Community Forum is kept a productive and safe environment.

Thank you!

Olivia