Discussion:1099-MISC for dissolved corp w/ no EIN
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Discussion Forum Index --> Advanced Tax Questions --> 1099-MISC for dissolved corp w/ no EIN
Discussion Forum Index --> Tax Questions --> 1099-MISC for dissolved corp w/ no EIN
| 30 August 2008 | |
| This client just came to me. S Corp dissolve in Sept 2004. Final 1120S filed in 2003. However, 1099-MISC (box 7) issued in 2004 to the S Corp but with no EIN (left blank). I'm hesitant to file 2004 1120S since a final return has already been filed in 2003; but if income is reported in his personal return, he will owe a pretty big SE tax vs. if it was a pass-through income. How would you all handle it?? | |
| 30 August 2008 | |
| Something doesn't sound right.
If the corporation dissolved in 2004, why wasn't there a final return filed in 2004? Why was "final return" in 2003? By this time I suppose the state dissolved the corporation by proclamation. Without an EI # on the 1099 - it would be quite difficult for IRS to identify the payee. If the client KNEW about the 1099 income (EI# or not) why wasn't there a return filed for 2004 - whether dissolved or not? | |
| 30 August 2008 | |
| Bean - Unless you suspect the client is not being straight with you, I don't see any problem with your filing a 2004 form 1120S, again marking it "final". If the 1099 was issued to the corp, there's no reason to assume the income was earned by the individual.
Of course there's the issue of reasonable salary which you will have to analyze and come up with your argument/position on. | |
| 30 August 2008 | |
| You're right. I will file a final 1120S for 2004. Client is not denying that income was earned. He's one of those clients that "didn't know you were supposed to file taxes if the company was gone,"-even though income was received. We wonder sometimes... THanks guys! | |
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