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Old 04-04-2012, 11:39 AM
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Join Date: Apr 2012
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Post Sole Proprietor, 1099's with wrong recipient.

Hi all,
Im having a problem which I don't know exactly how to resolve.

I have had a SP business installing satellite services. I do have an EIN through federal and state. Although, when personal business hit a low, i did installations/service calls through corporate. Some of the 1099's i received were filed through my SSN, and a few were filed with my EIN and business name. But all of them SHOULD have been filed with my EIN and entered as business income, not personal income.

This has caused my personal tax liability skyrocket, as you can imagine and I need to get this resolved. I did use a SEPARATE 1099 filed to myself as salary; the rest is put back into the business to offset expenses, etc.

I am a MFJ with my wife receiving W-2 and three kids.

Please tell me what i need to do on my 1040X to correct this... I have since liquidated the business, i just need to get my records under control.



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Old 04-05-2012, 07:33 PM
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Join Date: Oct 2010
Posts: 5,230
“This has caused my personal tax liability skyrocket, as you can imagine and I need to get this resolved. I did use a SEPARATE 1099 filed to myself as salary; the rest is put back into the business to offset expenses, etc.”------->As a SP, you are supposed to report all your income on 1099s on your Sch C/Sch SE/ 1040 since you are NOT incorporated.SPs are permitted but not required to obtain an EIN from the IRS(Having an EIN also may convey a more official approach to your business).I mean UNLESS your tax status is a corporation, there is no difference in reporting your income on 1099s on your return as said above. You, as a SP, are a person who work for yourself in your own business and report your income on Sch C/Sch SE/1040.



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