<prompt> Human: In 2013, I began buying and reselling limited edition Nike shoes on eBay through my parents account. For 11 months out of the year, I was using my parents Paypal account because it was already connected to the eBay ID with sales history. I initially only bought and sold the shoes to meet credit card minimum spending requirements and to also generate earnings through various cash back portals.As the year progressed, I ramped up my sales. I exceeded the 200 transactions20,000 limit with Paypal approx. 32,000 in total sales. I kept a detailed spreadsheet of my sales, COGS, all fees and shipping costs along with all receipts.I reported net income of 3,000 on my personal tax return, Schedule D and paid the applicable tax.My parents just received a CP2000 notice from the IRS stating that their was a discrepancy in the amount of the income they reported on their personal return vs. what was reported to the IRS, in the amount of 28,000. The IRS is assuming all of that was income and says they owe over 7,000. This is obviously not the case.I need advice on the best way to proceed.1. The CP2000 notice gave the option of drafting a written response that the income is misidentified. They can state in the letter that the income is mine by giving my SS number, name and address. I would then amend my 2013 return and fill out all the appropriate forms. Would the income transfer to me as the IRS is stating? This would be my preference.2. My parents can contact the IRS and see if they should amend their return by filing a 1040x and Schedule C for 2013. My concern with this option is that if the IRS wanted to audit schedule C, all of the payments for the goods, eBayPaypal fees and shipping expenses were done on my credit card. All funds from Paypal went to my bank account. Im worried the IRS would disallow those expenses since they arent in my parents name if I went this route.Any advice would be appreciated.  <response>: Call the IRS and tell them exactly what you wrote in this post. You did the right thing, and have records to support it. 