How to fix an incorrect 1099-K form?

[Justapilgrim]

Square sent a 1099-K form that listed me as an individual to the department of revenue instead of filing it under my business name.  Now the department of revenue is claiming I have unclaimed income on my personal taxes instead of applying that income to my business which we have already claimed and paid.  How do I get this fixed? Square support has been slow rolling me and asking me to send a bank statement from the past year proving I didn't have other deposits to my business account beyond the date we had stopped using square...  I've talked to my bank and they are just as confused as to what documentation Square could be requesting that would prove I don't have deposits to my account and why it even matters to Square.  Square should have a record of all income I made through square and that is what their 1099-K should reflect. What is going on?  Are they afraid of getting fined by the IRS for incorrect tax reporting and hope I just go away? This has been an ongoing issue for the past three months.  I need help on this situation.  What should be my next step?

[kellyj · Accepted solution]

@Justapilgrim

We'd be happy to help, and it sounds like you have already spoken to our Support team.

From our Support Center:

Update Your 1099-K for a Previous Year

To update your 1099-K for a previous year, please begin by updating your taxpayer information from your online Square Dashboard to ensure that your Square business name matches what the IRS has on file.

Next, please contact us. In order to update your taxpayer information, make sure to have the following documentation ready:

• A copy of an official bank statement on your bank’s letterhead which shows deposits from Square to your business. The statement can show any month from the year you’re requesting an updated Form 1099-K and should include your full bank statement. If you are requesting to update multiple 1099-Ks, make sure to include a bank statement for each correlating year. Additionally, if you used multiple bank accounts in the year that needs correction, please provide a statement for each bank account you received deposits to from Square.

Your bank statement(s) should clearly show:

• Official bank letterhead with your bank’s logo.
• The bank holder’s name and address. Note: The bank account holder’s name and address need to match the name/information in your Square Dashboard under Taxpayer Information for the updated Form 1099-K.
• The bank account number or the last 3 digits of the account if you’re using a credit union.
• Deposits from Square in the same year as your requested 1099-K correction.

When we receive this information the 1099 can be correct to show your business information as expected.

[kellyj · Accepted solution]

@Justapilgrim

We'd be happy to help, and it sounds like you have already spoken to our Support team.

From our Support Center:

Update Your 1099-K for a Previous Year

To update your 1099-K for a previous year, please begin by updating your taxpayer information from your online Square Dashboard to ensure that your Square business name matches what the IRS has on file.

Next, please contact us. In order to update your taxpayer information, make sure to have the following documentation ready:

• A copy of an official bank statement on your bank’s letterhead which shows deposits from Square to your business. The statement can show any month from the year you’re requesting an updated Form 1099-K and should include your full bank statement. If you are requesting to update multiple 1099-Ks, make sure to include a bank statement for each correlating year. Additionally, if you used multiple bank accounts in the year that needs correction, please provide a statement for each bank account you received deposits to from Square.

Your bank statement(s) should clearly show:

• Official bank letterhead with your bank’s logo.
• The bank holder’s name and address. Note: The bank account holder’s name and address need to match the name/information in your Square Dashboard under Taxpayer Information for the updated Form 1099-K.
• The bank account number or the last 3 digits of the account if you’re using a credit union.
• Deposits from Square in the same year as your requested 1099-K correction.

When we receive this information the 1099 can be correct to show your business information as expected.

[tgourd]

The owner information is incorrect which is causing the 1099K to be incorrect as well.  How do I change the owner info and correct the 1099K

[Joe]

Hi there, @tgourd 👋 Thanks for reaching out to us here on the Seller Community! Welcome!

I've gone ahead and merged your post into an existing thread of Sellers who were also looking for information regarding editing 1099-K info.

While account ownership can't be edited through Square, you can make appropriate edits to your 1099! Take a look at this helpful Best Answer from KellyJ - she will walk you through all the info you need!

Let us know if you have any questions!

[ERIC9977]

HOW DO YOU FILE AMENEDED RETURNS THAT WERE FILED UNDER WRONG TAX ID NUMBERS

[nika]

Hi @ERIC9977. Check out @kellyj's instructions above that walk through how you can update your information and get a corrected 1099k.

[sfarris75]

I stumbled across this thread while searching for remedies to the same problem the OP had. I have provided a bank statement to Square - twice- documenting deposits made to a 501(c)3 non-profit account, but because the Taxpayer ID erroneously has my SSN, the IRS thinks I have unreported income for the year in question. I have been trying since Sept. 28, 2021 to get the 1099k corrected. I'm now on my third square customer "success" rep, as the first two stopped responding. I'm nearing taking legal action against Square because their slow rolling has the IRS escalating the issue and I had to pay $60 to file a petition in U.S. Tax Court to fight this with the IRS. I'm a retired teacher and non-profit director on a fixed income.  Square's delay in correcting the 1099 despite me following their instructions to the letter have created extreme anxiety and stress for me.

[Kassi_]

Welcome to the Community, @sfarris75 - 

If this is a current 1099K, you can made adjustments to the Tax Payer Information on your Dashboard. 

Look under Account & Settings > Business > Tax Payer Information. 

An old 1099K would have to be edited by our Tax Team. You would have to reach out to them directly. 

[sfarris75]

Taxpayer ID info has been changed, but corrected 1099 hasn't been issued. I've made many attempts to get contact info for the tax department, but so far, none of the customer service reps have provided that to me.

[Kassi_]

@sfarris75 - 

Is this for a current 1099K? Or an old one?

[ryanw]

How do you contact your "Tax Team?" Do they have a phone number, email address, or any other way to contact them? If I call, I spend hours navigating through customer service reps who have no idea how to fix this or connect me to the right people.

Who is the "Tax Team?"

[crwkathleen]

There is no way to reach out to your tax team directly. I have tried multiple times as well to no avail. SQUARE WILL DO NOTHING TO HELP!!!

[Jah89]

I received Form-1099-K for 2022, which appears to be in error.  I have been trying to get in touch with someone at Square/Block, Inc. which is the source of the form to determine what specific transactions were included on the form and to confirm that they have the correct taxpayer information.  I have written several emails, chatted with people and bots, but no one appears to understand that I am trying to verify the information on the form, so I can determine the nature of each transaction.  I don't believe I should have received the form and think it may have been issued to me in error, rather than to one or both of two organizations for which I processed Cash App and other electronic payments.  Can you help me get to the source of the Form 1099-K, so I can determine its correctness/accuracy.  Thanks  Adasqd

[_Violet]

Hi @Jah89 - I see this is your first post in the Seller Community so I'd like to officially welcome you! 🎉👏

In the US, the state where your taxpayer information is associated will determine your qualification for a Form 1099-K. The thresholds for Form 1099-K qualification can vary from state to state. Make sure to double-check your state’s thresholds here.

To access your Form 1099-K online:

1. Log in to your online Square Dashboard, and go to Account & Settings > Business information > Tax forms.

2. If you qualify for a Form 1099-K, you can download a PDF of your Form 1099-K and update your tax information directly from the Tax Forms tab if you need to.

I hope this information is helpful but please do let me know if you have any additional questions.

[crwkathleen]

I, too, have had this same issue with Square and it's maddening. I've been trying to get it resolved since 2020. Every time I get the runaround. I concur, SQUARE WILL DO NOTHING TO HELP!!!

[Justapilgrim · Accepted solution]

Hello all,

I just wanted to come back to this post and give everyone an update on my experience and what I went though to get it resolved.  Kelly's post above will not help you in any way as I attempted to do this as she instructed and after submitting the exact paper work that was requested to at least three different support representatives who all claimed that they couldn't find my previous tickets or submitted forms they informed me the accounting team were located out of the country and had no way to talk to them other than via the email that was already provided.  Since this issue was financially effecting my entire family by the IRS garnishing my tax refunds and my state trying to put a levy against my wages I took the advice of the representative I spoke to at my states department of revenue who graciously put a hold on levying my wages after explaining the situation.  I ended up hiring a CPA and for all three previous years that the incorrect 1099-K was submitted I filled out what is called a Schedule C form from the IRS and resubmitted the W-2's with the said forms.  Right when I was trying to start all of this the Covid-19 pandemic was sweeping across the US and the IRS pretty much shutdown.  I requested a tax advocate who is appointed by the IRS to assist if you are having issues reaching the IRS or are under hardship due to the circumstances surrounding the case.  After hiring the CPA and getting a tax advocate involved I'm happy to announce that this issue has finally been resolved (I hope!). As of 07/15/2021 I received all of my garnished taxes from the IRS and my returns for those years have been accepted.  As of 11/08/2021 I've spoken with my local state department of revenue and the case has finally been closed for the state as well and I'm awaiting a check in the mail for overpayment that the IRS sent to the state from some of my garnished tax returns. 

SQUARE WILL DO NOTHING TO HELP YOU!!!   

Once again here are the steps you should take.

(These are the steps I had to take to resolve the matter) 

--- My situation may differ as I had already submitted and paid the taxes for the business before receiving or being aware of the incorrect 1009-K forms from Square.

• Hire a CPA or go back to who originally submitted your taxes.
• Download the appropriate form Schedule C from IRS.gov website for the year(s) that need to be corrected.
• Download the appropriate W-2 from IRS.gov for the year(s) that need to be resubmitted.
• Fill out the Schedule C and Nominate your business as the payee of said taxes.
• Resubmit your personal W-2 with the correct amounts that you earned as  an individual (not the business)
• Submit all documents. (W-2, Schedule C, and 1099-k) 
• Follow up with your tax advocate as they will call you when they have new information or see where the IRS has made progress in your case.  (my refunds from the IRS were returned via direct deposit as I had already used that in the past for tax returns)
• I'd highly recommend trying to get a tax advocate to assist with your issue as it will expedite your responses from the IRS.  (To do this you must submit a letter to the IRS explaining your current hardship due to the issue at hand).
• If your local state is also claiming you owe taxes once you have resolved your case with the IRS and everything has been accepted you should be able to log into irs.gov and navigate to
• Tax Records
• Get Transcripts select a reason and continue.
• Under the Account Transcript section choose the year(s) you need to submit to your local dept. of revenue and download copies.
• Fax Account Transcripts to local dept. of revenue.
• Follow up with state dept. of revenue and make sure account is in good standing and any refunds are being mailed to you.

I hope this helps anyone else you is going through this nightmare.  It took me two and half years to resolve this mess partly due to Covid, but partly because Square lied to me about being able to assist in this matter for several months prior to creating this thread and having to find out what I needed to do graciously by the kind person who I spoke with at my states dept. of revenue.

, Best Regards
JustaPilgrim

[sfarris75]

I started to say "unbelievable", but after dealing with this issue for almost 6 months, your experience is completely believable. The main difference in our cases is that I was the exec. director of a 501(c)3 non-profit that is exempt from federal income tax. To date, I don't know how/why my SSN ended up on the 1099k because Square had the EIN/TIN for the organization. Square's requirement of a SSN to set up accounts needs scrutiny to stop this issue from happening. I've talked to several CPA's who say it's a common problem. 

It is beyond frustrating that the instructions provided by Square to correct a past 1099 seem so simple, yet expedient execution of that process is apparently beyond Square's ability. Customers should not have to go through multiple service reps to get answers. When we provide EXACTLY what Square requires to correct a 1099, and then get repeated run-arounds like we've experienced, it is apparent there is a serious problem within Square operations and management.

I'm sorry you had such a long ordeal, but I'm glad you finally got a resolution. I'm praying my situation is resolved soon. 

[ryanw]

What an absolute nightmare. Square is about to issue me an incorrect 1099-K and I am dreading this horror show. The website just says "Unable to communicate with the IRS" so I can't even begin step 1 of this process.

We're an elementary school PTA and Square is destroying the tax returns of parent volunteers trying to have bake sales so they can buy school supplies. Horrifying.

[JJ_]

We are sorry about this experience @ryanw 

The Tax Team is not a Phone support team. If your issue persists and you're unable to update your taxpayer information then I suggest reaching out to our support team so they can get this escalated for you. When you get a chance you can reach out here.

[crwkathleen]

Support team does nothing but give the runaround. 

[JJ_]

Hello there @crwkathleen 

If the Square Tax Team is requesting bank statements, you will need to provide bank statement(s) that show Square deposited to an account under the business name listed in your Tax Payer information instead of you as an individual. 

Please respond to the email sent from Square support with a PDF copy of your official bank statement attached. The statement can show any month from the year you’re requesting an updated Form 1099-K and should include your full bank statement. If you are requesting to update multiple 1099-Ks, make sure to include a bank statement for each correlating year. Additionally, if you used multiple bank accounts in the year that needs correction, please provide a statement for each bank account to which you received transfers from Square.

Your bank statement(s) should clearly show:

• Official bank letterhead with your bank’s logo.
• The bank holder’s name and address. Note: The bank account holder’s name and address need to match the name/information in your Square Dashboard under Taxpayer Information for the updated Form 1099-K.
• The bank account number or the last 3 digits of the account if you’re using a credit union.
• Transfers from Square in the same year as your requested 1099-K correction.

The IRS requires Square to verify that funds were transferred into a bank account registered to your business.

Note: Be sure to reply directly to the email with your bank statement(s) attached. Otherwise forwarded attachments will be separated from this email thread — delaying our ability to review and resolve this issue.

Note: The Tax Team is considered an internal team and doesn't offer email or phone support at this time to be able to support the best amount of Sellers as escalations occur by our support team. 

I hope this information is helpful!