Author Topic: 1099-k unreported tax and audit  (Read 654 times)

SFremy

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1099-k unreported tax and audit
« on: April 29, 2018, 01:26:47 PM »
Hello,
 I was just audited through letter by IRS for small business tax on an unreported 1099-k from paypal. I had my head in the sand last year and actually never believed I had made over $20,000 (but I did).  I am hoping and praying that I can still amend this form to show the business costs of my products on ebay against the gross taxable income.  In a sense, redo my taxes to give an accurate business profit/loss. Can anyone please help?  Thanks so much for your time.
Remy

MDM

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Re: 1099-k unreported tax and audit
« Reply #1 on: April 29, 2018, 01:35:11 PM »

SFremy

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Re: 1099-k unreported tax and audit
« Reply #2 on: April 29, 2018, 01:49:44 PM »
Thanks much.  I will save this page for sure.  My only question now is, does this also apply to an audit situation?

MDM

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Re: 1099-k unreported tax and audit
« Reply #3 on: April 29, 2018, 01:56:26 PM »
Depends on the exact wording of the audit letter.  In general, if you agree with what the IRS claims, just follow the instructions in the letter.  It gets more complicated, but still doable, if you don't agree.

Sibley

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Re: 1099-k unreported tax and audit
« Reply #4 on: May 04, 2018, 04:01:44 PM »
My dad screwed up on reporting 1099 incomes, and got a letter. I researched it, did an amended 1040X for them, had them send it in (with a check), and wrote a letter back to the IRS with info, attaching the amended return. That was the end of it I believe.

Then I fired my dad from doing taxes.

MustacheAndaHalf

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Re: 1099-k unreported tax and audit
« Reply #5 on: May 04, 2018, 09:11:05 PM »
If you hit $20,000 in sales last year, I'm guessing you had sales before that.  You might want to take a look back at your profit/loss in prior years and see if you need to amend earlier years, as well.