@Zola_de_Firmi  "There is no PayPal associated with our construction company."

This being the case, it may be worthwhile to consider establishing one for cases like this.

Depending on your husband's business type (Schedule C or otherwise), the effects of this 1099-K may wash out, but I wouldn't be too hopeful; you did mention that you were a partner, and getting Paypal to correct it, let alone in time to file before the due date, may be rather the task to undertake.

Hope it works out for you, though.

"Do you mean excluded from calculations for 1099 generation for our company file? That doesn't pertain here. I am confused by that part of your reply."

I'm not sure if the staff here have been swallowed up by Intuit's shift towards reliance on AI or not, but even if they're not, they likely rely heavily on keywords in posts.

This kind of reply from the staff here is usually to head off a common misconception among business owners; ever since 1099-Ks (a form used to report credit card, debit card, and some other forms of electronic payments) came into play, many businesses have made a mess of reporting the amounts they pay their contract laborers and other vendors that should receive either a 1099-NEC or a 1099-MISC.

In short, if a business owner paid a 1099-NEC vendor by the relevant electronic payment and included the amount on the 1099-NEC, the vendor in question would end up having the income double-reported to the IRS on both the 1099-NEC (which it shouldn't be on) and the 1099-K (which it should be on).

That would lead the IRS to expect the vendor to pay income taxes twice on the same income, being that it was reported twice.

So, it's become part of the standard reply you'll find on topics related to 1099s here.