LLC income wrongly reported and deposited

Forum|Forum|2 years ago
August 29, 2023
2 replies
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What can I do to correct LLC income that was reported on my social instead of business EIN and direct deposited into a personal account?

Bsch4477

Level 15

You can use either tax ID number since your LLC income is reported on your personal return. Keep good records to show what income and deductions were business related.

theunbelievableAuthor

Level 2

The LLC is a partnership--myself and my husband. And it is filed separately from our personal tax return. And there is no way that I can get the payers to report this income to the EIN instead of to my personal SSN. So I guess my question is, how do I report this income as coming in but going right back out to the LLC? Will Turbo Tax handle this situation and if so, where?

Thanks in advance for any help!

VolvoGirl

Level 15

What kind of LLC? A Single Member LLC? Do you file a separate business return for the LLC? If you file your LLC on schedule C in your personal tax return then it is a disregarded entity and it doesn't matter if you use the EIN or your ssn.

theunbelievableAuthor

Level 2

The LLC is a partnership--myself and my husband. And yes, it is filed separately from our personal tax return. And there is no way that I can get the payers to report this income to the EIN instead of to my personal SSN. So I guess my question is, how do I report this income as coming in but going right back out to the LLC?

Thanks in advance for any help!

Opus 17

Level 15

Thank you so much for your extremely helpful answer and yes, blessedly I am thinking ahead to the 2023 return! We are in a state where we file a 1065 partnership return and yes, I will be reporting the income there as I will write a check from my personal account to the LLC. I just needed to know how to get the income off my personal return in a way that the IRS will recognize as legitimate.

@theunbelievable wrote:

Thank you so much for your extremely helpful answer and yes, blessedly I am thinking ahead to the 2023 return! We are in a state where we file a 1065 partnership return and yes, I will be reporting the income there as I will write a check from my personal account to the LLC. I just needed to know how to get the income off my personal return in a way that the IRS will recognize as legitimate.

To be extremely technical, the IRS official instructions say that if you get a 1099 that is incorrect, you should not enter it on your tax return, but attach a copy and a letter of explanation to your return and file by mail. However, since e-filing is preferred even by the IRS, the negative entry procedure seems to work. If the amount is under $600 and this is the only payment from that particular client, you probably won't get any tax paperwork at all.