Discussion:1099 misc issued in error
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Discussion Forum Index --> Basic Tax Questions --> 1099 misc issued in error
Discussion Forum Index --> Tax Questions --> 1099 misc issued in error
| 17 March 2008 | |
| An individual was issued 1099 misc. It should have been issued to the corporation but the payer had the individual SSN instead of the corp EIN. However all checks were issued in the coprp name. How do I handle this. Does the individual issue the corp a 1099 misc for the same amount. If he does how does he show it on the 1040. He received a cp-2000 notice | |
| 17 March 2008 | |
| The way it should have be handles in the year the 1099-Misc applies to would be to include a Sch C in the personal return showing the amount as income and then in other expenses use the description of "nominee income to EIN ----", with the same amount. This in effect clears the record (no CP-2000). However, be prepared to prove it was shown as income to the corporation. | |
Actionbsns (talk|edits) said: | 17 March 2008 |
| This comes up a lot with smaller corporations. I just had one for a client who filed their first corporate return last year. I've written a letter to respond to the CP2000 notice, and provided the front page of the 1120S with my letter. I suspect we will have to provide something else, but we'll wait until we are told what they want. This client had about 8 1099's and didn't bother bringing them into me. The shareholder of another, well established corporation received a couple of 1099's using her SSN and all we did was call when the letter came out. We were lucky and got the "nice guy of the day" and he just simply posted a change. I wish they were all that easy. | |
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