1099-NEC

[Isaac2000]

Hi, I have a s-corporation with EIN number, but the income report on 1099 with my social security number.  Can I report it on my business tax return, or I have to report it on my personal because of s.s.n.

 

[JohnB5677]

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.

1. Include the amounts from the 1099 forms on Line 1 of Schedule C. 
2. Then, in Part V of Schedule C under Other Expenses.
3. Put this exact description "Nominee Income to xx-xxxxxxx (which is your business EIN)" and post the amount.
4. You do not have to enter the 1099 as a negative number. 
5. This shows the income coming in and going right back out without any tax consequence. 
6. The effect is to show the IRS that you recognize the income, but that it belongs to entirely different identification number.
7. Then include the amount as Cash on the S-Corp.

[Isaac2000]

Thanks, just one thing, deadline for s-corporate is before personal, is it ok? How the IRS match this if you know?

I really appreciate your help

[PatriciaV]

Yes, as long as you report the income on your S-Corp return, you should be fine. The process outlined by Expert JohnB will flag the income entry on your 1040 return, allowing the IRS to match the two. Also note that your SSN is associated with your S-Corp EIN because you are a member of the S-Corp.

[Isaac2000]

Thanks so much