1099-K issued to single member disregarded entity LLC EIN rather than SSN? Does this need to be corrected?

[al123]

I accept payments though PayPal though my website. I am a single member disregarded entity LLC. When signing up for a business account though PayPal you needed to select one of the following: individual/sole proprietor, corporation, partnership or charity. Unlike on form W9 there was no individual/ sole proprietor or single member LLC option so I selected corporation and gave my EIN which is tied to my LLC. I was required to get an EIN to open a bank account. I received the 1099-K which listed my EIN and not my SSN. Do I need to correct this or not because the LLC business name and EIN will be on my Schedule C. Should I request the 1099K be amended?

[Anonymous_ · Accepted solution]

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@al123 wrote:

Do I need to correct this or not because the LLC business name and EIN will be on my Schedule C. 

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In that instance, the 1099-K does not need to be corrected.

[pkbartonk20]

Yes, how do I do it?

[KathrynG3]

The EIN does not need to be corrected since the single member LLC is a disregarded entity. That means that it is reported on the individual return, Form 1040. 

Include Form 1099-K on your Schedule C. If you already have Form 1099-K included in the reported income, you have two options.

• Keep Form 1099-K for your records and report the income as one number, or
• Back out the portion of the income that is attributable to Form 1099-K and include Form 1099-K.

Since the IRS will be looking for Form 1099-K on your return, the second option may be best. To do this in TurboTax, follow these steps:

• From the Wages and Income section, go to Self-employed income and expenses and
• Select Start/Revisit to begin with reporting Form 1099-K.
• Report Form 1099-K as received in the COMMON INCOME section under Other self-employed income, includes 1099-K, cash, and checks.

For more information, see: What is Form 1099-K?