1099 went under my personal name, not my business

[Layne C]

Hello,

One of my clients issued a 1099 under my personal name and SSN, when it should be under my business name and EIN. Does this matter? The payment from the client went into my business account, so I don't want to file as a sole proprietorship for them unless it doesn't matter. Their accountant said it is too late to change this, but I'd assume that if they incorrectly issue the 1099, wouldn't they be liable for getting me a correct one?

Thanks!

[MarilynG1]

Did you file a W-9 with your client with your Business Name?  Are you a Single Member LLC?

If you file a Schedule C for your Business, it won't matter that the 1099 has your name/SSN.   

If yours is not a single-member LLC,  then you should first be filing your business return as appropriate (C-Corp, S-Corp, Partnership, etc.) and then report your portion of the LLC earnings on your personal return via the K-1 issued to you by the LLC.

Here's more details on How to File Taxes with Form 1099-NEC. 

[Layne C]

They have been a client for a couple years, all previous years I was a sole proprietor, and this year I became a multi member LLC, so a partnership, and when I emailed them my W-9 for 2023 that's when they responded and said it was too late.

Thanks!

[KrisD15]

To clarify-

Will you be filing both a Schedule C and Partnership return for 2023?

It seems that the client felt they paid you, the Sole-Proprietor.

The updated W-9 should have been issued before any payments were accepted.

How were the checks for payment made out? 

If the payment was made out to you, you might be able to issue a 1099-NEC to the partnership for the same amount. 

Claim the income from the 1099-NEC from the client on Schedule C, then claim and expense for the same amount on your Schedule C which will then be claimed by the Partnership.