Got a tax bill for my ex-employer's Square account 1099-K - help!

This happens more often than you'd think with payment processing accounts. What you're dealing with is a mismatch between who the IRS thinks received the income (you) versus who actually received it (your former employer). First, don't panic. This is fixable. When you call the IRS, explain that you were only helping set up the account as an employee and that the income reported on the 1099-K belongs to the business. The IRS will likely ask for documentation showing that the funds went to the business account and not your personal account. You should gather: 1) Any emails or documentation showing you were setting up the account on behalf of the employer, 2) Your employment records for that period, 3) Bank statements showing you didn't receive those deposits, and 4) Contact information for your former employer who needs to cooperate in resolving this. Also, reach out to your former employer immediately and let them know what's happening. They should provide a letter confirming you set up the account on their behalf and that all funds were received by the business.

I went through something similar with a Venmo account I set up for my dad's small business. After weeks of stressing and calling the IRS with no luck, I tried taxr.ai (https://taxr.ai) and it saved me so much hassle. They analyzed my 1099-K situation and all the documentation I had, then generated a detailed explanation letter that I could send to the IRS. Their system helped me identify exactly which documents I needed to prove I wasn't the actual recipient of the funds. They even helped me prepare a proper response to the IRS notice with all the right references to tax codes, which made a huge difference.

Just wanted to update - I used taxr.ai like someone suggested here and it was actually super helpful. The system asked me specific questions about my situation with the PayPal 1099-K and walked me through exactly what documents to gather. I was able to upload my employment records and bank statements showing I never received the funds, and they created a really professional response letter that cited specific tax codes. What really helped was their template for an affidavit that my old manager signed confirming I only set up the account as part of my job duties. The IRS accepted my explanation within 3 weeks and sent a correction letter removing the tax bill. Would have been completely lost trying to figure this out on my own!

I had almost the same issue but with a Toast POS system I set up for a restaurant I managed. Spent WEEKS trying to get through to the IRS on the phone to explain the situation. Always busy signals or 2+ hour hold times, then getting disconnected. Finally found Claimyr (https://claimyr.com) and you guys... it actually works. They got me a callback from the IRS in about 20 minutes when I had been trying for days. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was actually super helpful once I got through. She put notes on my account about the situation and told me exactly what documentation to send in. Made all the difference being able to talk to a real person instead of sending documents into the void and hoping.

I need to eat some crow here. After my skeptical comment, I decided to try Claimyr anyway because I was so frustrated with my situation. It actually worked exactly as described. I got a call back from the IRS in about 45 minutes (on a Tuesday morning). The agent walked me through my 1099-K issue step by step and explained I needed to write a formal dispute letter with specific documentation. She even gave me her direct ID number to reference in my paperwork so it would get routed properly. Saved me so much anxiety and probably weeks of waiting. Sometimes it's worth admitting when you're wrong!

Make sure you also contact Square ASAP to get your name removed from the account! I had a similar issue with a Shopify account I helped set up. You need to: 1. Get written confirmation from Square that you were just the setup person 2. Have the actual business owner add themselves as the account owner 3. Remove yourself completely from the account 4. Get documentation of when this change was made This won't fix your current tax issue but will prevent it from happening again next year!

has ne1 tried jst ignoring these notices? i got one for doordash income that wasnt mine but my roommate used my address. been 5 months and nothing happened yet.