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Why did I receive an IRS B-Notice?

Since you receive payments for goods or services through PayPal, we are required to submit a tax Form 1099K to the IRS when the payments you receive meet the reporting thresholds set by the IRS. Recently, the U.S. Internal Revenue Service (IRS) identified a mismatch on your between the legal name and taxpayer identification number (TIN) in the IRS's records.  As a result of this mismatch, you received a B-Notice.

Because we complete the required information on the Form 1099-K using the information that you supply to us through your PayPal account, we need you to take action on your account.

The B-Notice we sent provides the additional information we need from you. You have received either a 1st B-Notice or a 2nd B-Notice.
  • If you received a 1st B-Notice (which happens the first year that the IRS identifies a mismatch in tax identification number/legal name), log in to your PayPal account and follow the Alert Notification to the tax Form W-9 dashboard. Download, fill out, and upload the tax Form W-9.
  • If you received a 2nd B-Notice (which happens the second consecutive year that the IRS identifies a mismatch in tax identification number/legal name), please  provide either a copy of your Social Security Card (individuals or sole proprietors) or a US IRS tax Letter 147C (entities). Log in to your PayPal account, and go to the Resolution Center to upload the document.
Note: The IRS does not have an online solution for requesting a tax Letter 147C; 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 visit our tax information site for more information.

Please note that the relevant tax Form needs to be processed before the deadline mentioned on the B-Notice in order to prevent your account from becoming further limited.  

Note:
  • If you have multiple PayPal accounts, you may need to verify that your tax identification number is accurate for each account.
  • Please make sure all pages of the document are included and signed if applicable prior to logging in to your PayPal account and uploading the document. You may also send documents to:
Tax Operations
PayPal
PO Box 45950
Omaha, NE 68145
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