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So let me get this straight, 1099 from paypal AND my CPA networks? Why?

Discussion in 'Business & Tax Advice' started by JRoman, Jan 31, 2014.

  1. JRoman

    JRoman Newbie

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    Hey guys this is my first year actually making some big money with some online ventures compared to last year. This whole tax thing is driving me insane, I just cannot wrap my head around it. Why am I getting a 1099 from paypal and from my CPA network? Does that not mean I have to pay taxes on the same money since im getting two forms? Its all the same money, what is the purpose two 1099 forms in my mail box.

    (Worked at the post office till last year when I got laid off.. best thing to ever happen to my life, never returning to a 9-5)

    Thx guys
     
  2. ProSEO Show

    ProSEO Show Regular Member

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    I believe they are just both required to send you the form...You shouldn't have to pay twice on the same income...
     
  3. JRoman

    JRoman Newbie

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    Well my paypal 1099 is showing my total income which is fine. And the cpa network form shows what I have made with them correct? My assumption was the these are to be added together?
     
  4. ProSEO Show

    ProSEO Show Regular Member

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    I'm certainly no accountant or lawyer, but if you consulted with one most likely they would only use the information from your PayPal 1099 since it's more complete (additional income sources besides your cpa network I'm assuming?)...It's my understanding that you cannot be taxed twice on the same source of income...
     
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  5. JRoman

    JRoman Newbie

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    So lets say my brother works with a CPA network with his tax information. And hes withdrawing his payments into my paypal which has my tax information. My brother receives a 1099 from his cpa network, and I receive a 1099 from paypal. Who pays the taxes from the cpa network.
     
  6. MadStacks

    MadStacks BANNED BANNED

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    Both are required to send you that form since you are a contractor and in business for yourself. Take both forms with you
    to a tax specialist and they will help you take care of them.
     
  7. noseo

    noseo Regular Member

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    What will happen is that you will file your taxes correctly. Then the IRS might send you a bill because they add up the numbers differently. The IRS at this point has changed your tax return to fit their own estimates. Then you file an amended return explaining the reason that the IRS is wrong. Keep all documentation.
     
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  8. cocopuff0

    cocopuff0 Registered Member

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    This happened to my friend where he also received 1 from paypal and 1 from his cpa network. He paid taxes based off of cpa network's 1099 but later got a huge fine from the IRS because as noseo has stated, IRS seem to calculate things differently. So basically he had to work with his accountant to work things out with IRS. So yeah, keep all of your records!
     
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  9. ProSEO Show

    ProSEO Show Regular Member

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    This is good to know, def. gonna keep that in mind.
     
  10. Hopeful

    Hopeful Regular Member

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    I'd consult a professional... There's two things you never mess with- the IRS and their Taxes.
     
  11. evilclown

    evilclown Senior Member

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    Get a consultant to help because it could that both companies are reporting the earning. I know if you have 2 1099 from different cpa networks and then the 1099 of paypal has both amounts in it, then you should use the paypal one.
     
  12. liftitbuddy

    liftitbuddy Newbie

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    JRoman,

    I am an attorney and CPA, I would be happy to help you prepare your taxes. Please feel free to contact me.
     
  13. Tsmash

    Tsmash Regular Member

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    This is extremely common. You won't have to pay taxes for both 1099, just the amount you actually earned. However, the IRS will come back and try to screw you because until it gets sorted out, they will think that you only paid taxes on a half of your income. You'll get hit with a notice, you'll talk to your accountant (get a CPA if you don't already have one) and said accountant will sort it all out for you. The IRS screws up on the reg, I get bullshit notices from them all the time that my accountant has to sort out.