USA Serious Question Need Help

[myaccountingquestions]

Thank you in advance for your help.

My company has several revenue streams which are processed through third party services, such as credit card processors. Each third party issues a 1099 for all payments distributed. However, one of the companies issued the 1099 to my personal social security number. They say they are unable to change it to the business EIN. The total is over $100,000.00. How can this be corrected? and how will it effect my business taxes etc.. as the income is reported on all my business financials. The business financials have not been filed yet. We are a Florida LLC if that helps.

Again - Thanks so much for your help. If you need more information, please ask.

 

[ColinCPA]

Thank you in advance for your help.

My company has several revenue streams which are processed through third party services, such as credit card processors. Each third party issues a 1099 for all payments distributed. However, one of the companies issued the 1099 to my personal social security number. They say they are unable to change it to the business EIN. The total is over $100,000.00. How can this be corrected? and how will it effect my business taxes etc.. as the income is reported on all my business financials. The business financials have not been filed yet. We are a Florida LLC if that helps.

Again - Thanks so much for your help. If you need more information, please ask.

Why are they unable to get this corrected? Did they contract to provide services to you or your company? Provide to them a completed W-9 and get them to file a corrected 1099. This should not be a big deal.

What business form are you operating under? If you are operating as a C-corp or S-corp, for instance, you do not need to be issued a 1099.

If they aren't going to resolve this, I suppose you will need to reflect the payment through your filing entity on your individual return. I would report the 1099 income as "Other Income" on line 20 of your return, this use a line item such as "Less: Amount paid through "your company name" EIN :99-999999", so that the income nets to zero and isn't double counted. If the IRS issues a notice, have proof to substantiate the pickup of the income on your business return. But, all this can be easily avoided if you get a corrected 1099.

 

[Samir]

I would push the company for a corrected 1099. It's a pain on their end to do it, but it really needs to be done that way if possible.