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Old 04-16-2011, 12:15 PM
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1099 Misc given to s corporation's name

Hi, my question is the following. Some of the 1099-Misc were given to recipient's name: "the s corp name", and some others were given to the solo shareholder of the s corp.
Should I enter all the 1099Misc in his 1040 or should I enter only the ones in his name? and the rest in 1120s? If so, where should I enter 1099 misc in 1120s?

Thanks



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Old 04-17-2011, 08:32 AM
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“Should I enter all the 1099Misc in his 1040 or should I enter only the ones in his name? and the rest in 1120s? If so, where should I enter 1099 misc in 1120s”---> I guess they need to be reported as the income on the S corp’s 1120S. Even though they receive 1099s in their name, they STILL show 1099s income as corporate income on the S corp’s 1120S. The solo shareholder that received his 1099MISc income, as an IC, I guess( BUT I am not sure) needs to file his Sch C to report the his 1099 income on his Sch C and report it on his 1040.In general, you need to send a 1099-MISC to the LLC or LLP but not to the S Corporation; 1099-MISCs are issued to individuals, estates, partnerships, disregarded single-member LLCs and LLCs treated as partnerships. Corporations and LLCs treated as an association and taxed as a corporation are generally not issued 1099-MISCs UNLESS the payments are: for medical and health care (box 6); for fish purchases paid by cash (box 7); for attorney fees (box 7); or etc. As long as you hire LLCs and pay them more than $600 per year, then you need to file Form 1099-MISC with the IRS to report the amount of the payment. However,this requirement doesn't apply if the LLC has opted to be taxed as a corporation. So, you, as a hiring firm, do not have to file Form 1099-MISC when you hire a corporation. For this reason, some businesses prefer to hire corporations instead of LLCs because they can avoid filing the 1099-MISC form altogether. Payments to corporations (and, implicitly, all corporations passthrough entities or not) are not required to be reported. Firms don't like filing the forms because they often lead to audits. In other words, you need to issue a 1099MISC if the entity you paid is anything other than a corporation, and exception: you MAY issue a 1099 even to corporations as long as the payment is legal fees or rents.



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