I have an scorp but received a 1099 from a client

[lisaf1]

I have an individual LLC SCorp. I have a client who reported their payment to me on a 1099 with my SS#. I reported the income through my scorp/ein. We have both filed our business taxes already. I have not filed my personal taxes yet. I'm concerned this will show up as not reporting the income if I don't include it on my personal taxes but I've already reported it as received through my business and don't want to be taxed twice. The other company is unwilling to make a correction.

Do I need to amend my business taxes and pull out the income received and report as personal income? Or is there another way? I received the money through my business bank account, over the course of the entire year which will completely screw up my accounting if I have to pull it out. What options do I have?

[Anonymous_]

On your 1040, you can indicate that you received the amount entered on the 1099 you received as nominee for your S corporation.

[Mike9241]

if you receive an incorrect 1099, reach out to your client and try to correct it. If this doesn’t work, contact the IRS at (800) 829-1040 for instructions. You may have to include a letter with your tax return stating why there is a discrepancy.

another suggestion

In some cases, the 1099 sender may not be willing to work with you or be difficult to reach. In this scenario, there is no quick resolution. You’ll address the discrepancy on your tax return on

a) schedule 1 report income with a complete description it's erroneous on line 8z and subtract the amount on the same line 

or

b) create a schedule C showing the amount as income 

in deductions on schedule C  list as error in reporting the same amount

You will need to show the client reported an erroneous amount on your 1099 and attach a statement to explain the difference. In your statement, include the amount reported, the difference, and the correct amount. Unfortunately, a 1099 discrepancy puts you at higher risk of being audited, but your explanation may serve to reduce your audit risk.

in the future always use the S-Corp EIN on the W-9 part I leave the SSN line blank.

other may have different suggestions 

[rjs]

How did the client get your Social Security number? You must have given them a W-9 filled out as an individual, with your Social Security number. As Mike9241 said, if you want payment made to the S corp, give the client a W-9 with the name of the S corp, the S corporation box checked, and the EIN of the S corp. The W-9 is supposed to have either a Social Security number or an EIN, depending on the type of entity, but not both.

For the future, tell the client to stop using your Social Security number and make all future payments to the S corp, with the S corp's EIN. Give them a new W-9 if necessary. When you bill them, put the name and EIN of the S corp on the invoice, and not your personal name or Social Security number. However, if they have already made payments to you this year as an individual, they probably will not be willing to change their records of those payments.

[ee-ea]

Tel the client about section 7434 of the tax code  https://www.law.cornell.edu/uscode/text/26/7434

[rjs]

Section 7434 is "Civil damages for fraudulent filing of information returns." It's not clear that there is any fraud, or that the 1099 that the client issued is incorrect. The client made payments to an individual contractor who gave them her Social Security number, and they correctly reported those payments on a 1099 issued to the individual who was paid. The client did not make the payments to an S corporation. Most likely the specifics of the contracting arrangement were not clearly spelled out in advance. We don't have all the details. There may not be a written contract. The two parties had different understandings of the arrangement. The contractor may have given the client a W-9 that did not properly reflect the contractor's intentions concerning how payments were to be made.