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How much was deposited on your PayPal account?
If the payment was less than 20K, no 1099K will be issued. If you received any type of income for services provided (like organizing a convention), regardless if you get 1099K/1099Misc or not, you are required to report it on your tax return. You can offset the income with expenses you had.
Ok. So what was deposited into your paypal account?
Where the money came from? From who?
Ok, I see. If you didn't organize the convention, what did you organized?
Ok. If you organized a convention, regardless if you made any profit or not, and received contributions, the contributions are considered your income. You will report the income on schedule C and deduct your expenses to arrive at your net profit or loss. If you used all the money for convention expenses, you shouldn't have any profit but you will still have to claim the activity on your tax return.
PayPal is required to report accounts with deposits over 20K or with more than 200 deposit. With 500+ deposits IRS will be looking for some type of income on your tax return. You cannot ignore it.
Any questions? Is there anything else I can help you with today?
I know it is not the answer you were hopping for, but that's the easiest way to keep IRS of your back and avoid future complications. PayPal with send 1099K to IRS and IRS softwares will be looking for a match on your tax return, just like with W2s or other tax forms. If the amount is not reported on your tax return, you will receive a notice that more income was reported from third parties and your return had been recalculated. You will receive a bill and you will have two options. Agree with IRS and pay the bill or amend the return and fix it. If you report it correctly now, you can avoid future hassle with IRS.
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