I do affiliate marketing for a living. The commission payments get transferred into my business PayPal account and the various businesses also send me a 1099. Normally I would just list the 1099s on my tax return, but this affiliate revenue is already taxed when I enter the numbers off Form 1099-K that PayPal sent.
Now the IRS is saying that I failed to record these other 1099s that I received, which is technically correct. But I didn't do so because I didn't want my affiliate commissions to be taxed twice.
If the money is already accounted for on the 1099-K, then why do I also need to note the individual 1099s that I get from these marketing companies? Again, the goal is to avoid double taxation and make sure I'm doing everything correct.
Definition of 1099-K
"Form 1099-K, Payment Card and Third Party Network Transactions, is used to report transactions that are made via a payment settlement entities. Simply put, if you use a service to process credit or debit card transactions, that service is a payment settlement entity, and the amount of those types of transactions for the year should be reported on the Form 1099-K."