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They sold someone else's equipment on eBay, split the proceeds, and received a Form 1099-K reporting about $219,000 under their own Social Security number. Now the IRS says they owe. What went wrong, and what should they do next?
In this video, I review an eBay seller's account of a complicated IRS dispute involving PayPal, Form 1099-K, the Automated Underreporter unit (AUR), and the Taxpayer Advocate Service (TAS).
I discuss why the gross amount reported on a 1099-K needs to be reconciled with the tax return, how the seller's arrangement and payments to t...