Submit tax report corrections

You can regenerate Form 1099-K after merchants update their profile information through KYC verification. PayPal processes corrections for up to 5 years after the original form generation.

When to submit corrections

You need to submit a correction request in these situations:

• Merchant updates their legal name.
• Merchant updates their address.
• Merchant updates their TIN/SSN information.
• Merchant completes KYC verification after KYC revocation.

PayPal automatically enables the tax reporting capability when merchants complete KYC verification and disables it when KYC is revoked.

Correction workflow

1. Merchant updates information through your platform and completes KYC verification.
2. You submit correction request to PayPal through the API.
3. PayPal validates KYC and tax reporting capability, regenerates the form within 3 days, and files it with IRS and state agencies.
4. PayPal sends a webhook notification when the corrected form is available.
5. You retrieve the corrected form and deliver it to the merchant.

1. Verify KYC completion

Ensure the merchant completes KYC verification for their updated information before you submit a correction request. PayPal rejects correction requests when the merchant’s KYC is revoked.

2. Submit correction request

You can submit a correction request using one of two approaches:

Quick request

Use a valid access token and make a POST call to the /v2/taxes/reports/{reportId}/corrections endpoint to regenerate the form using the merchant’s current KYC-verified information. Include the following parameters:

Path parameter: reportId is the ID of the original report you want to correct, retrieved from the List available tax reports response.

Parameter	Action
type Required, string	Set the type of correction request. Possible values: TAX_DATA_CORRECTION - Correct profile data or aggregated transactions ZERO_OUT - Correct report for customers not subject to reporting
requester Required, string	Set the entity requesting the correction. Possible values: USER - For partner-initiated corrections on behalf of merchants. ADMIN - For operations team-initiated corrections.
quick_correct boolean	Set to true to regenerate the form using current verified data on file. When true, PayPal uses the merchant’s current KYC-verified information without requiring explicit correction details.

Sample request

curl -X POST 'https://api-m.sandbox.paypal.com/v2/taxes/reports/11EF-A741-C86DDAC4-BE58-CF8F5BF706E8/corrections' \
-H 'Content-Type: application/json' \
-H 'Authorization: Bearer <ACCESS-TOKEN>' \
-d '{
    "type": "TAX_DATA_CORRECTION",
    "requester": "USER",
    "quick_correct": true
}'

A successful call returns a 200 OK response. The response includes the following parameters:

Parameter	Description	Further action
id string	Unique identifier for the correction request.	Check correction status using this ID.
corrected_report object	HATEOAS link to the corrected report. Populated when status is COMPLETED.	Retrieve the corrected report using the report ID from this object.

Detailed request

Use a valid access token and make a POST call to the /v2/taxes/reports/{reportId}/corrections endpoint with the specific correction details you want to apply. Include the following parameters:

Path parameter: reportId is the ID of the original report you want to correct, retrieved from the List available tax reports response.

Parameter	Action
type Required, string	Set the type of correction request. Possible values: TAX_DATA_CORRECTION - Correct profile data or aggregated transactions ZERO_OUT - Correct report for customers not subject to reporting
requester Required, string	Set the entity requesting the correction. Possible values: USER - For partner-initiated corrections on behalf of merchants. ADMIN - For operations team-initiated corrections.
correction_details.account_profile object	Provide the corrected account profile information.
correction_details.account_profile.external_id string	Provide the partner-assigned external identifier.
correction_details.account_profile.tier string	Provide the account type. Possible values: PERSONAL - PayPal personal account BUSINESS - PayPal business account PREMIER - PayPal premier account
correction_details.account_profile.legal_country_code string	Provide the two-letter country code. Example: US.
correction_details.account_profile.primary_owner object	Provide the corrected primary account owner information.
correction_details.account_profile.primary_owner.names array	Provide the corrected name. Each object contains full_name.
correction_details.account_profile.primary_owner.addresses array	Provide the corrected address. Each object contains address_line_1, address_line_2, admin_area_2 (city), admin_area_1 (state), postal_code, and country_code.
correction_details.account_profile.primary_owner.documents array	Provide the corrected TIN/SSN. Each object contains identification_number (encrypted), partial (boolean), and type (SSN or EIN).

Sample request

curl -X POST 'https://api-m.sandbox.paypal.com/v2/taxes/reports/11EF-A741-C86DDAC4-BE58-CF8F5BF706E8/corrections' \
-H 'Content-Type: application/json' \
-H 'Authorization: Bearer <ACCESS-TOKEN>' \
-d '{
    "type": "TAX_DATA_CORRECTION",
    "requester": "USER",
    "correction_details": {
        "account_profile": {
            "external_id": "1939261082936477870",
            "tier": "PERSONAL",
            "legal_country_code": "US",
            "primary_owner": {
                "names": [
                    {
                        "full_name": "Jane Doe"
                    }
                ],
                "addresses": [
                    {
                        "address_line_1": "456 Oak Avenue",
                        "address_line_2": "Apartment 5B",
                        "admin_area_2": "Portland",
                        "admin_area_1": "OR",
                        "postal_code": "97201",
                        "country_code": "US"
                    }
                ],
                "documents": [
                    {
                        "identification_number": "ABcNkzU2.0sWUvLn3D45aJK5K2mTyx1QnSxb1j3x0JOY2D3CjsKm6-E",
                        "partial": false,
                        "type": "SSN"
                    }
                ]
            }
        }
    }
}'

PayPal validates that the correction details match the merchant’s current KYC-verified profile before processing the correction.

3. Check correction status

Use a valid access token and make a GET call to the /v2/taxes/reports/{reportId}/corrections/{correctionId} endpoint.

Path parameters:

• reportId is the ID of the original report, retrieved from the List available tax reports response.
• correctionId is the correction request ID from the Submit correction request response.

Sample request

curl -X GET 'https://api-m.sandbox.paypal.com/v2/taxes/reports/11EF-A741-C86DDAC4-BE58-CF8F5BF706E8/corrections/11ED-FABB-440B8FA8-9CB0-43A289BCF687' \
-H 'Authorization: Bearer <ACCESS-TOKEN>'

Correction statuses

Status	Description	Further action
INITIAL	Correction is initiated.	Wait for processing to begin.
PENDING_INFORMATION	Correction is pending user action to complete required processes.	Contact PayPal support for required information.
MANUAL_REVIEW	Correction is pending admin review.	Wait for review completion.
PROCESSING_REPORT	Required processes completed and corrected report generation is in progress.	Wait for completion or webhook notification.
COMPLETED	Correction is completed and corrected report has been generated.	Retrieve the corrected form using the href from corrected_report.

4. Retrieve corrected report

Use a valid access token and make a GET call to the /v2/taxes/reports/{reportId} endpoint when the correction status is COMPLETED.

Path parameter: reportId is the corrected report ID extracted from the corrected_report.href in the Check correction status response.

Sample request

curl -X GET 'https://api-m.sandbox.paypal.com/v2/taxes/reports/11ED-FAC1-508DB6F6-8C1B-42A3FDA7CBC5' \
-H 'Authorization: Bearer <ACCESS-TOKEN>'

5. Handle correction webhooks

PayPal sends a TAXES.REPORTS.GENERATED webhook event when a corrected report is ready. The event includes is_corrected: true and original_report_id to identify the corrected report.

For information about handling webhook notifications for both regular and corrected reports, see Handle webhook notifications.

Best practices

• Submit correction requests only after merchants complete KYC verification.
• Verify tax reporting capability is enabled before submitting corrections.
• Check merchant KYC status and capability if a request fails.
• Inform merchants about the 3-day SLA for correction processing.
• Store correction request IDs and track status changes.

Limitations

• You can only submit corrections for reports from the current year and up to 5 years prior.
• PayPal does not support corrections to payment amounts or transaction totals. You can only correct merchant profile information such as name, address, and TIN.
• Corrections require completed KYC verification and active tax reporting capability.