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Help Center > Merchant Services/Manage business and sales tools > Why did I receive an IRS B-Notice?

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Why did I receive an IRS B-Notice?

You've received an IRS B-Notice because some of the information on your PayPal account doesn't match what the IRS has on file for you. The name and tax identification number we have on file was used for Form 1099K reporting and this information does not appear to match the information on file with the IRS.

We submit a tax Form 1099K as required by the US Internal Revenue Service (IRC Section 6050W) when the payments you receive meet the reporting thresholds set by the IRS. All payment processors, including PayPal must comply with this IRS rule.

The B-Notice we sent will provide you with all the additional information we need from you.
  • If you received a 1st B-Notice, log in to your PayPal account and follow the Alert Notification in to the Tax Dashboard.
  • 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 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.

If you have multiple PayPal accounts, you may need to verify that your tax identification number is accurate for each account.

Please provide these documents within 15 days of receiving the notice to avoid limitations to your 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

Please visit the PayPal tax reporting site for more information on IRS reporting requirements.

For more information on tax reporting and FAQ's please visit the PayPal IRS 6050W website.
 
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