Person that sent my 1099 misc misidentified my identification number?

[Honorcode]

Thank you for your well thought reply.  Let me offer the reasons why I am still confused, and to address your questions.  

1) IRS W9 Instructions, Page 4, Part I:  I copied it directly from the W9 in black italic font.  The red font are my comments based on my understanding of the instructions.    https://www.irs.gov/pub/irs-pdf/fw9.pdf

"If you are a single-member LLC that is disregarded as an entity separate from its owner, enter the owner’s SSN... The IRS makes it very clear that I am to use my SSN, and not to use my EIN.   The next part adds a lot of confusion ...  (or EIN, if the owner has one)  ... [by this previous text in the parenthese, the IRS means that if the disregarded LLC is owned by an LLC that is a corporation, and that corporation has an EIN, then use the corporations's EIN]  Now, I suspect that a lot of people are now confused, so the IRS adds the the next sentence, and this sentence is repeating the first sentence of this paragraph.    Do not enter the disregarded entity’s EIN. If the LLC is classified as a corporation or partnership, enter the entity’s EIN." 

It is the above instructions, that are terribly written, that cause a lot of problems.  If I were to re-write it, I would say the following:

a) A single-member LLC that is also a disregarded entity can be owned by an individual, or owned by another LLC.  

b) If the owner is an individual, then you must use the individuals SSN (even if the disregarded entity has an EIN, do not use it for IRS purposes)

c) If the owner is a Corporation, then use the corporations EIN.

d) If the owner is a different single-member LLC, and that LLC is also disregarded, then use the individual's SSN

======== The above covers the W9 ==================

Part 2:  IRS Instructions on filling out a 1099.  Please see 

https://www.irs.gov/pub/irs-prior/i1099gi--2019.pdf.    Section J.  It states:

"For a single-member LLC (including a foreign LLC with a U.S. owner) that is disregarded as an entity separate from its owner under Regulations section 301.7701-3, enter the owner's name only on the first name line and the LLC's name on the second name line. For the TIN, enter the owner's SSN (or EIN, if applicable). If the LLC is taxed as a corporation, partnership, etc., enter the entity's EIN."  The EIN is only applicable if the owner is a corporation that has an EIN.  In my case, I am a disregarded-enetity, so the IRS wants the 1099 in with my SSN, not the EIN.

============ The addresses the 2 key IRS instructional documents for disregarded entities ====

More helpful information:

1) Rental Income = I only use Schedule E.  I do not file a schedule C.  However, the 1099-MISC are using my LLC's EINs, even though they are disregarded entities.  I think this is wrong given the above instructions.

2) Vanguard, who provides me with tax planning services at no charge, helped me set up my EINs and W9s for my LLCs.  The 1099-DIV and 1099-B that I receive from vanguard uses the EIN.  I think this is wrong.

3) Its been 3 years since I have created these LLCs, and I have a large stack of 1099s.  I am worried that all of?

them need to be corrected.  Some of the 1099s are from companies that went out of business.  what do I do?

4) My IRS tax transcripts do not list the wage and income for anything that uses the LLC's EIN.  If my SSN was linked to my EIN, wouldn't it be with my SSN's tax transcripts?

Thank you.

[VolvoGirl]

The instructions about filling out the 1099Misc are if YOU are filling them out to give to other people.  Not for ones you get from someone else.   You have been setting up multiple LLCs?  You should see a CPA or tax accountant.  One thing I've been meaning to ask you is when you set up the Single Member LLC did you select it to be an S corp?  If you did that makes a difference in all this.  

[Honorcode]

Hi.  My single-member LLC is not an S corp.  It is not a partnership.  It is not a corporation.  

I agree that the instructions that I provided are based from the filer's point of view, but that is also my point.  The filer was suppose to place my personal name, my personal address, and my SSN on the 1099s.  Instead, they listed my business name, my business address, and my business's EIN.  Based on the 1099 filer instructions, it seems that the filer did everything wrong except the dollar amount.

[Honorcode]

Thank you for your well thought reply.  Let me offer the reasons why I am still confused, and to address your questions.  

1) IRS W9 Instructions, Page 4, Part I:  I copied it directly from the W9 in black italic font.  The red font are my comments based on my understanding of the instructions.    https://www.irs.gov/pub/irs-pdf/fw9.pdf

"If you are a single-member LLC that is disregarded as an entity separate from its owner, enter the owner’s SSN... The IRS makes it very clear that I am to use my SSN, and not to use my EIN.   The next part adds a lot of confusion ...  (or EIN, if the owner has one)  ... [by this previous text in the parenthese, the IRS means that if the disregarded LLC is owned by an LLC that is a corporation, and that corporation has an EIN, then use the corporations's EIN]  Now, I suspect that a lot of people are now confused, so the IRS adds the the next sentence, and this sentence is repeating the first sentence of this paragraph.    Do not enter the disregarded entity’s EIN. If the LLC is classified as a corporation or partnership, enter the entity’s EIN." 

It is the above instructions, that are terribly written, that cause a lot of problems.  If I were to re-write it, I would say the following:

a) A single-member LLC that is also a disregarded entity can be owned by an individual, or owned by another LLC.  

b) If the owner is an individual, then you must use the individuals SSN (even if the disregarded entity has an EIN, do not use it for IRS purposes)

c) If the owner is a Corporation, then use the corporations EIN.

d) If the owner is a different single-member LLC, and that LLC is also disregarded, then use the individual's SSN

I am not taxed as a corporation.  I am taxed as an individual.  For that reason, I also beleive that the 1099s need to use my SSN, and only my SSN.

======== The above covers the W9 ==================

Part 2:  IRS Instructions on filling out a 1099.  Please see 

https://www.irs.gov/pub/irs-prior/i1099gi--2019.pdf

 Section J.  It states:

"For a single-member LLC (including a foreign LLC with a U.S. owner) that is disregarded as an entity separate from its owner under Regulations section 301.7701-3, enter the owner's name only on the first name line and the LLC's name on the second name line. For the TIN, enter the owner's SSN (or EIN, if applicable). If the LLC is taxed as a corporation, partnership, etc., enter the entity's EIN."  The EIN is only applicable if the owner is a corporation that has an EIN.  In my case, I am a disregarded-enetity, so the IRS wants the 1099 in with my SSN, not the EIN.  The IRS also states "if I am taxed as a corporation, then use the EIN". I am not taxed as a corporation.

============ The addresses the 2 key IRS instructional documents for disregarded entities ====

More helpful information:

1) I only use schedule E for the rental income.  I do not use schedule C. 

2) Vanguard helped me set up all of my EINs and W9s because I qualified for their help.  The 1099-DIV and 1099-B that I receive from vanguard uses the EIN for the disregarded entities.  I think this is wrong given the IRS instructions..

3) The IRS transcripts for my SSN does not show any of the income that was reported to my EINs.  If the accounts were linked, wouldn't I see these statements under my SSN's tax transcripts?

4) If my 1099s are incorrect, how do I fix them?  Note that a few of the filers are now out of business, there is no way to get the original filer to submit a correction.

Thank you

Thank you.

[Carl]

1) IRS W9 Instructions, Page 4, Part I:

Has absolutely nothing what-so-ever to do with completing the 1099-MISC in any way, shape, form or fashion. But for the W-9, you apparently didn't bother to read what comes immediately after in parenthesis.

If you are a single-member LLC that is disregarded as an entity separate from its owner, enter the owner’s SSN (or EIN, if the owner has one.).

Then in your own post above referring to "section J" you yourself even included where it clearly states the same about using the EIN, in parenthesis.

1) I only use schedule E for the rental income.  I do not use schedule C. 

Whew! Thanks for clarifying that. I see folks screw that up quite frequently with a false belief that putting their rental into an LLC will somehow protect them, when in most cases it does exactly the opposite.

2) Vanguard helped me set up all of my EINs and W9s because I qualified for their help.

Glad that's clarified now. I was afraid the rental may have been an IRA asset, which would mean you would not under any circumstances be reporting it on your personal tax return.

3) The IRS transcripts for my SSN does not show any of the income that was reported to my EINs.  If the accounts were linked, wouldn't I see these statements under my SSN's tax transcripts?

Nope, not at all. You have to pull that from the transcripts for the EIN, not transcripts for the SSN. The IRS keeps things separate on the public side, so that someone with your EIN or your SSN, could not possibly pull your "total" tax records on the public side.

4) If my 1099s are incorrect, how do I fix them? 

Again, they are not incorrect. There is nothing to fix here. However, if you keep insisting that you are the expert here and know more than the IRS, feel free to seek professional help. I'm sure a professional will have no problem taking your money to fix something that was never broken in the first place.