Avoiding 1099-K Tax Reporting Errors: IRS Guidelines.

The IRS has clarified that all business income must be reported, regardless of whether you receive Form 1099-K or not. The agency has also provided guidance on how to handle mistakes on the form, including contacting the issuer directly to correct errors or zeroing out the income on two lines of Schedule 1 with the description "Form 1099-K Received in Error" for both. Taxpayers who received Form 1099-K after selling personal items at a loss should report profits as a capital gain on Form 8949 and Schedule D.