I sent them an e-mail and here's their reply:

"Dear Don Logerwell,

Thank you for contacting PayPal.

I understand that you received the information regarding the IRS issue. We
take the privacy of our customers' information very seriously. We have
received a summons, but we do not have any further information at this
time.

If you have any further questions, please feel free to contact us again."

I responded to ask if they will be notifying their customers if their records are provided to the IRS. I'll let you know if they reply and what they say.

Jeez, first the NSA, now the IRS, who's next in this administration to want to snoop around in our private lives.