DianeW777
Expert Alumni

Business & farm

The information provided by @ReneeM7122 brings us to the same result where the IRS is matching the income to the return.  With that being said, if you choose to disregard that and enter the LLC name using the EIN, be prepared to provide the necessary information should the IRS database initiate an inquiry. Their goal will be to see if and where the income has been reported.  

 

By using the nominee action to transfer the income from the EIN to the SSN it would eliminate the IRS problem, if you choose to use the LLC on the W-9.

 

Nominee returns

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners. 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

  • On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here: 

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