Incorporated in April 2016. Informed the insurance company that pays me and gave updated w9. Rec'd 1099misc, & it's marked under my SSN. What do I do now to file w/EIN?

[gatehealing]

For Jan-April, I should have gotten a 1099misc for that income, then another for April-Dec under my EIN.

[rjs · Accepted solution]

Were the checks that they sent you after April payable to the corporation or to you? If the insurance company made the payments to you, then it's your personal income and they have to report it that way on the 1099-MISC, with your SSN. Then you have to report it on Schedule C on your personal tax return, not on the corporation's tax return. The corporation didn't receive the income.

When payments are made to a corporation, the payer is not supposed to issue a 1099-MISC at all. So if the payments after April were made to the corporation, you should get only one 1099-MISC, for only the amount that was paid to you personally in the first four months. If they made payments to the corporation, but included those payments on the 1099-MISC with your SSN, you have ask them to issue a corrected 1099-MISC.

[gatehealing]

Hi rjs, thanks for the fast response. All of the checks were issued to me. Is it possible that them to correct the mistake (they did get my paperwork, but they admit the ball got dropped) and re-report my income to IRS correctly (1st four months under ssn, last 8 under ein)?  Finally, I have one other payer that has done things correctly--I am expecting a 1099misc for the first 4 months . . . are you saying that for the last 8 months (under my EIN) I will not receive a 1099misc? What would I be getting instead?

[rjs]

I don't know if it's possible for them to correct it at this point. You would have to ask them. A possible complication is that, since the checks were payable to you, you probably deposited them in your personal bank account, not the corporation's bank account. If either you or the corporation get audited, the IRS is not going to be happy about the income going to you but being reported by the corporation.

For the other payer, you will not get a 1099-MISC for the last 8 months. You will not get anything else instead. The corporation reports its income based on its own records of the income that it received.

[gatehealing]

I actually deposited everything after April to my corporate account. It sounds like I will need to call that Paid in Capital and count it on my sole proprietorship income. Dang it. I'll ask em if they can correct it, otherwise, it'll be right for next year. So does the other company that did get the w9 correct even report what they paid me (after I incorporated) to the IRS? I'll be reporting all of it, but I've been waiting for something from them--sounds like I'm good to go as soon as I get the other one squared away? Thanks for your patience in answering these questions--its my 1st year of doing this  . . . I was warned that it'd be a bit messy this first year.

[rjs]

The other company does not report what they paid to your corporation to the IRS. Payments to a corporation are not reported. So there's nothing to wait for.

[gatehealing]

Thank you!

[gatehealing]

@rjs as it turns out, a 1099 IS sent out to the corporation. My office-mate is incorporated the same as me (single member PLLC S-corp) and has gotten 1099s from her payers for years, and has received hers for this year. I have received a 1099 as well for the other company that I contract with (the one that got my info correct).  Just FYI in case anybody sees this post and thinks it's ok to submit taxes before getting 1099 . . . they may wanna wait to get those 1099's

[rjs]

In general the payer is not required to send a 1099-MISC to a corporation. Most companies would rather not send them out if they don't have to. There are exceptions, though. Are you by any chance an attorney? A 1099-MISC is required for attorney's fees, even if paid to a corporation.

What's important is reporting the correct amount of income. It doesn't really matter whether you file before you have the 1099-MISC. The 1099-MISC doesn't go on your tax return. Entering it in TurboTax is just for your own records, and to encourage accuracy. Only the total amount of income actually appears on your tax return. Your records should be good enough that you would report the correct amount of income even if you didn't get the 1099-MISC.

[gatehealing]

Not an Atty, mental health pro in private practice. Could be an exception like atty, not sure. We really need to simplify this tax code to be more consistent! I would understand not wanting to send out 1099's for contractors if it could be avoided though. Thanks. !