Schedule K - I reporting

[phillip-montgome]

I have a single member LLC and use PayPal for my Merchant Services. Any funds accrued in PayPal goes straight into my business checking account.  I do not withdraw any funds from PayPal.  Any checks or cash I receive also go into the business checking account.  Everything goes through my checking account.  At the end of the year I track any incoming payments as income.  That being said do I have to report the Schedule K-1?  If I do that I’ll be reporting that income twice.  I’ll be reporting the PayPal Schedule K-1 to the IRS and also that income will be counted when I report my income from the checking account.

[Critter]

You only have to report the income once ... you do not need to enter the 1099-misc or 1099-K  (it is not a K-1 ... that is a totally separate form)  income separately ... that part of the program is only for your records/use as the IRS never sees it.