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Old 07-14-2017, 01:36 AM
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LLC S Corp received 1099

Last year I filed 2553 for my single-member LLC start up. This year I received a 1099 for a service I performed that is not related to my business, but they used my company name and EIN on 1099 (I have done my regular business with them as well so they had all my company info). Can I report it on my 1040 hoping IRS won't notice the discrepancy, or do I file 1120 with form 851? I already prepared 1120S, but it does not give me an option to report 1099.



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Old 07-14-2017, 05:12 AM
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you filed the form of 2553 to elect S corp tax status. Electing S corp tax status means you?ll have to file additional tax documents each year, i.e., Form 1120S.they actually do not need to send a 1099-MISC to your S-Corp since the major exception to the 1099 requirement is payments to corps. Most payments to incorporated businesses do not require that they issue a 1099M form. but THEY can issue one just to be safe.They won't get penalized for issuing a 1099 to your S corp when they didn?t have to.The will also mail a copy of 1096/ 1099M to the IRS.IN any situation, basically, you can not attach the form to your 1120S return.They must have filed a 1099MISC with the IRS, too.I guess The best way to go is to get the issuer to correct the form 1099. Certainly, I would ask the issuer to change their records for the next year and you need to report the self employer income on your SCh C and 1040;you need to notify the IRS that the 1099M is wrongly issued to the S corp. Or For practical purposes, to direct 1099 income to an S corp, the hired individual must instruct the customer or client to pay the corp instead of the individual at the outset of the work. This may be achieved by completing IRS Form W-9 using the corp EIN and identifying the S corp as the formal payee. However, this form does not have retroactive effect, so once a 1099 has been issued, the official payee is responsible for reporting the income to the IRS Just enter the K-1 I guess they need to be reported as the income on the S corp?s 1120S



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Old 07-14-2017, 06:48 AM
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Quote:
Originally Posted by EllaM View Post
Last year I filed 2553 for my single-member LLC start up. This year I received a 1099 for a service I performed that is not related to my business, but they used my company name and EIN on 1099 (I have done my regular business with them as well so they had all my company info). Can I report it on my 1040 hoping IRS won't notice the discrepancy, or do I file 1120 with form 851? I already prepared 1120S, but it does not give me an option to report 1099.
note;aslongas your S-Corp receives the 1099-Misc, using the S-Corps Federal ID number, the 1099 income is just included in the Gross Receipts on Line 1 of the 1120S;
The only time that there is any kind of an issue would be if the 1099 came under your personal Social Security number but the amount was included in your 1120S. In that case you would have to include a note with your 1040, explaining that the 1099 was issued in error and the related income was included in the S-Corp, giving the name and Federal ID number of the S-Corp.



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Old 07-15-2017, 03:43 PM
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Thank you!

This is super helpful!



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