MY BUSINESS WENT FROM SOLE PROPRIETOR TO S CORP 1/2016 BUT SOME 1099 CAME TO ME WITH OLD NAME AND OLD FEIN # AFTER SENDING THEM THE W9 LAST YEAR..WHAT DO I DO?

[skconner]

FROM 1991 TO END OF 2015 WE WERE NAMED PACIFIC TANK SERVICES,  THEN I INCORPORATED THE COMPANY STARTING IN JANUARY 2016.. OUR NEW Name is Pacific Water Tank Services, Inc.  Most of our customers are repeat customers..so I have received over $125,000 of 1099 in the old name with the old FEIN ..they were given the W9 for the new Corp but the names are so simular  I guess they did not look at the # change. I need to file Corp Taxes by the 15th of March, what do I do about the incorrect FEIN  #'s?

[RichardG · Accepted solution]

I assume the 1099-MISC forms are for work performed in 2016, and the expenses for this work was booked on your corporation's books and tax return.  At this point you have no choice but to report the income on those forms on the corporation's tax return.  Otherwise, your income and expenses will not match on either your personal return or the corporate return.  

It's fair to say that the IRS will write to you later this year and attempt to put the $125,000 on your personal return.  At that point you'll have to write back and explain the situation (this might be a good year to buy Audit Defense).  Your only other option is to completely reconstruct your accounting to match the invoices and expenses with the 1099s and transfer those expenses to your personal return on Schedule C.