USA 1099, Schedule C and S-Corp

[NKaufman]

Recently came across a situation which left me quite confounded.

One gets a 1099 (on SSN and not EIN) because the client contract will not allow payments to S-corp. How does one assign most (or even 100%) of the 1099 revenue from Schedule-C to S-corp.

Was looking at this article where someone mentioned doing 100% nominee to S-corp.

https://www.taxprotalk.com/forums/viewtopic.php?f=8&t=7108

Any thoughts?

 

[LLCOOLES]

The tax returns for a sole proprietorship and an S Corporation are very different. The tax return for the proprietorship is the schedule C, the tax return for the S Corporation is an 1120s. This is a much more complex return than the schedule C. So take the amount from the 1099 received and place it on Line 1 (gross receipts or sales) of the 1120s. Income or losses from an S corporation distributed to a shareholder will come on a form called the K-1. It will appear in box 1.
I hope this helps you out in the future.
Mr. Leslie Linear-Linkedin and (e-mail address removed)

 

[NKaufman]

You just repeated what I mentioned plus stuff that isn't relevant

After doing some more research, assigning isn't as simple as people are making it out to be. IRS has issues with it

 

[LLCOOLES]

Dear NKaufman:

I did not see what your reply was. I do not copy or repeat what others post in this forum. I give my honest opinion in providing answers. You are entitle to your opinion on my response. I will not argue or disagree with you on what you said. So I will suffice it to say NKaufman, that in the future, you will not read any post provided by me. And that is allright.

 

[Nipa20]

I don's think you can assign , but may be recipient of 1099 can pay to S corporation and expenses on Schedule C . But sounds sham transaction if both are under same ownership.
Once 1099 is received would be required to be included in Schedule C

 

[NKaufman]

...So I will suffice it to say NKaufman, that in the future, you will not read any post provided by me. And that is allright...

And I'm very thankful for that.

 

[NKaufman]

...I don's think you can assign , but may be recipient of 1099 can pay to S corporation and expenses on Schedule C . But sounds sham transaction if both are under same ownership.
Once 1099 is received would be required to be included in Schedule C

Things are not as simple, I guess they never are.
This issue is a grey area especially in financial services sector where 1099s are common since individuals hold relevant licenses and contracts are drawn with individuals even when they have a separate entity