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Common US IRS Tax Questions 1099K, B-Notice, and FATCA

All US payment processors, including PayPal, are required by the Internal Revenue Service(IRS) to provide information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. 1099K and B-Notice are tax Forms which are applicable to holders of accounts both within and outside the United States since it pertains to income reporting for US persons/entities.

FATCA affects account holders that are outside the United States, and it requires PayPal to collect tax documents or certifications from account holders stating whether they are US persons. This includes, but is not limited to, business entities, and some individuals that open accounts outside the United States.

Tax Form 1099K Tips:
  • If you feel there is a discrepancy in your 1099K, please provide us with the transaction ID(s) in question and the justification for why the transaction is being disputed. Click Contact at the bottom of any page to call or email us.
You can also view these additional 1099K Help Center articles:
B-Notice Tips:
  • If there are any discrepancies with your tax identification number and name between PayPal and the IRS, you may receive an IRS B-Notice
  • The B-Notice will provide you with all of the additional information we need from you. If you received a 1st B-Notice, download IRS tax Form W-9 from the IRS website. If you received a 2nd B-Notice, please provide either a copy of your Social Security Card (individuals or sole proprietors) or a US IRS tax Letter 147C (entities).
  • The IRS does not have an online solution for requesting a tax Letter 147 C; the IRS will mail or fax the letter to you. To contact the IRS for a Letter 147C, you should call the IRS's Business and Specialty Tax line at 1-800-829-4933 between 7am and 7pm, local time, Monday through Friday. Requesting a faxed copy may be the quickest manner to get a copy of the tax Letter 147C. You can also view our tax information page for more information.
  • Fully complete and sign the relevant form and upload it by logging into your PayPal account and following the Notification prompt.
Why did I receive an IRS B-Notice?

FATCA Tips:
  • Only impactful for account holders outside of the United States.
  • PayPal must collect documentation such as certification of non-US status and either a tax Form W-9 for US persons or entities that are subject to US tax, or a tax Form W8BEN/W8BEN-E for non-US persons or entities that are not subject to US tax withholding and reporting.
  • Most business users who need to provide the requested information will be able to do so by logging into their PayPal account and following the notification prompts.
You can also view these additional FATCA Help Center articles: You can find more tax related information on the PayPal IRS tax website.
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