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Square reported business income as my personal income and now they IRS wants me to pay back taxes

Square reported my business earnings to my personal taxes and now the IRS wants me to pay back taxes owed.

 

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Super Seller

Square will report your income to the IRS, just like any credit card processor would, using the 1099-k form.  

 

This page outlines the 1099-k form and how it works.  https://squareup.com/help/us/en/article/5048-1099-k-overview

 

you can view your 1099-k forms here.  https://squareup.com/dashboard/business/taxes

 

You can also update your TIN or EIN number here so income isn't tied to your SSN but instead to your business. https://squareup.com/dashboard/business/taxes

 

Either way, credit card income will be reported and you will have to pay your income taxes on it.  As always Tax advice should be sought from a tax professional.

 

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