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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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I am concerned with the new paypal requirements for a 1099

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I am concerned with the new paypal requirements for a 1099 that my wife and I will be responsible for a large amount of tax that isn't necessarily income. I am in Afghanistan and was asked to handle collection and and payment for a satellite service for our platoon. This totals to over $20,000 dollars though every dollar I have collected went to pay the internet service provider. Am I going to get stuck paying out of pocket for the taxes associated with this?

Hi and welcome to Just Answer!
The form 1099-K is a new form and it has not be finalized yet - here is a draft -

That form is design to report payments - but the fact of reporting doesn't classify payments as taxable income.

The form 1099-K will be issued to you based on requirements in Regulations section 1.6050W-1.

Here are regulations -

Here are some additional information provided by the IRS -
You will need to provide explanation to the IRS about sources and purposes of these payments. But based on your information - that is not your taxable income - and you should not pay any tax on these amounts.

Please be sure to keep all records.

Please be aware that this is a new type of reporting - and most likely - there will be many changes.


Let me know if you need any help or clarification.

Lev and other Tax Specialists are ready to help you