1099-G for new small farm not yet operational

[irregularTT]

I am in the process of starting a small farm business for which I have set up an LLC with EIN.   In 2023, the LLC received a USDA NRCS Taxable Grant (1099-G, Box 6) for a high tunnel.

Do I report this 1099-G on Schedule F even though my business was not yet open in 2023?

To me, neither Schedule F nor the subsequent Self Employment Tax seem applicable for 2023 because I was not engaging in ongoing business activities.  And, the SE Tax is being calculated on 100% of the Taxable Grant because there are no deductions for depreciation or start-up and organizational expenses. (It’s my understanding that these deductions start in the tax year in which the business officially opens.)

A second option for entering the 1099-G is from another Turbo Tax forum: https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-i-properly-enter-info-for-a-ta....

In doing this, the 1099-G gets reported on Schedule 1 which makes it look like I personally received the taxable grant rather than the LLC.  Is that a problem with the IRS?  How would they reconcile a 1099 issued to the LLC EIN being reported on Schedule 1 which is tied to my personal name and SSN?

Thank you in advance to anyone who can help me sort this out.

[MonikaK1]

If this is a single-member LLC, disregarded entity for tax purposes, then you should report it on your personal return Schedule F and not as "other reportable income".

If this is another type of LLC, such as one taxed as a partnership, then it should be reported on a tax return for the entity.

The IRS information return matching program will look for the amount to appear on a tax return. If you receive a notice from the IRS that it is missing, provide evidence of where the amount was reported.

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