First you should try to have the issuer of the 1099 change it to the EIN.
If that doesn't work, you will have to report it on your tax return, but you can flow it back to the S-Corp.
- Include the amounts from the 1099 forms on Line 1 of Schedule C.
- Then, in Part V of Schedule C under Other Expenses.
- Put this exact description "Nominee Income to xx-xxxxxxx (which is your business EIN)" and post the amount.
- You do not have to enter the 1099 as a negative number.
- This shows the income coming in and going right back out without any tax consequence.
- The effect is to show the IRS that you recognize the income, but that it belongs to entirely different identification number.
- Then include the amount as Cash on the S-Corp.
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