I opened a business bank account and received a $100 bonus. My 1099-INT showed up under my EIN. How do I report this? Turbotax only allows me to use my SSN for 1099-INT

[blakebcg]

I run a single member LLC and signed up for a business bank under my EIN and my LLC's name. I signed up under a $100 offer and received it during the course of the year. The bank sent me a form saying the reward counted as interest income and needed to be reported on 1099-INT. The problem is it says "Taxpayers ID: <my EIN here>"

Turbotax wont let me enter this under my EIN, only as my SSN. I assume the IRS is looking to see if my EIN reports $100 in interest income and not my SSN... So what do I do?

[RichardK]

If you are reporting the SMLLC as a Schedule C, with the SMLLC's EIN, on your Form 1040, then the IRS should be satisfied because it can tie the interest income to the Schedule C.   

[Anonymous]

I'm going to take a stab at this, but am NOT a CPA, EA, or professional preparer. Just a volunteer preparer, completed the AFPS, created a single-member disregarded-entity LLC, and trying to put the pieces together as best I can.  

I would think Form 1040, Line 2b (and Schedule B if required), right along with all your other interest, is the place for the 1099-INT interest income.  Why?

With a single-member LLC, a "disregarded entity," the IRS literally disregards that the entity exists.  You're a sole proprietor, and you're treated as one for all tax purposes.  Treat bank interest income the same, no matter what account it's in.  Bank interest is not income from business activity ("such as notes or accounts receivable" per the IRS' examples of business interest in the Schedule C instructions).

But, what about that EIN?  The 1099-INT has your entity's EIN on it, so isn't the IRS looking for that interest to be reported wherever you report that entity's EIN?

Oddly enough, the IRS isn't looking for your LLC's EIN to report any interest, because they're actually not looking for your LLC's EIN to report anything at all.

What?!  All that work getting an EIN for your LLC, and the IRS isn't even looking for it on your return?  Well.... yeah!  When they say "disregaded," they really mean it!  They actually specify NOT to use the entity's EIN on personal income tax forms, including Schedule C, if it's a SMLLC, unless that EIN is for one of very few specific purposes that rarely apply.  When working with personal income tax, you essentially disregard the existence of your LLC.

https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-compan...

https://www.irs.gov/instructions/i1040sc#idm140094051277488

When your bank reports your 1099-INT with your entity's EIN to the IRS, the IRS already knows that EIN belongs to you, and ONLY you, and that the EIN is for a disregarded entity.  So, they're going to look for that interest income to be reported where all your other interest income is: Form 1040, Line 2b (personal income, and therefore not subject to self-employment tax).

And as others have said, if the IRS doesn't see that interest reported there, you're likely to get a letter asking why.

Again, not a CPA, EA, or professional preparer, so happy to be corrected if there's a firm citation to indicate that interest reported on 1099-INT should go anywhere aside from 1040/2b.

[ToddL99]

Report the $100 "bonus" on your tax return and use your SSN.  As @Anonymous and @RichardK stated, the SMLLC is disregarded by the IRS and the income is taxable to you. As long as the payment is reported on your tax return, the IRS won't have any problem.