Discussion:Changing over from Schedule C to Partnership
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Discussion Forum Index --> Advanced Tax Questions --> Changing over from Schedule C to Partnership
Discussion Forum Index --> Tax Questions --> Changing over from Schedule C to Partnership
Donniecastleman (talk|edits) said: | 22 December 2007 |
| Hello everyone, finally taking that step to getting everything in a partnership, what do I do, as I know that someone somewhere, even though I've taken great steps to inform people I work for that I'm filing under a different tax ID number, that I'll get a 1099 with my social on it. What is the best way to handle this situation, barring claiming the income on my schedule C? My CPA friend from NY said I could attach a letter to one of the returns stating that I'm filing under a different tax ID# but I'd definitely like to hear you guys take on it, thanks!
Donnie Castleman | |
PHIL MOODY (talk|edits) said: | 22 December 2007 |
| File schedule C with those reporting your SSN.
On schedule C enter as an expense "Nominee distribution: aaaa partnership NN-NNNNNNN" | |
TheTinCook (talk|edits) said: | 22 December 2007 |
| I'm of the Line 21 school, but if you're already going to have a Shc C, stick it on that. | |
Valleytaxoffice (talk|edits) said: | 22 December 2007 |
I had a client with a S Corp. Each year I sent a letter to the client asking him to inform his customers of his EIN. At times a 1099 came with is SSN. We reported it on Sch C and then backed it as an expense. We also listed the EIN of the S Corp on the Sch C. We did that for a few years and never heard anything from the IRS. 
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| December 22, 2007 | |
| I agree with Moody & Martinez. If the error occurs, do an in-out on Schedule C. LA residents would need to write a letter to the business license processing center to explain receipt of a 1099 issued in error to a social security number instead of a partnership's number. Submit a properly completed W-9 to the payor so it doesn't happen again. Payees must be proactive to make sure payments are made out to the name of the partnership, not the individual. If you receive a check made out to you as an individual, I'd return the check with a copy of your W-9 and a copy of your invoice highlighting your business name, and request that the check be resubmitted under your new business name. | |
| 23 December 2007 | |
| Donnie, your question sounds as though you are currently a one-man shop reporting as a Sch C and you are putting everything into a partnership that you will be the sole owner of. Surely I am missing something here, since a partnership requires at least two partners. Tell me that I am wrong and that somewhere in the casinos and bright lights of LV you bumped into another taxguy/girl that you intend to partner with. Geddy Lee?? Don't Rush into that. :) | |
Donniecastleman (talk|edits) said: | 26 December 2007 |
| hahahaha, me and the wife formed the partnership, mainly for reasons that I'm just afraid to keep filing Schedule C, especially when I have 4 schedule C's I have to file, it's a nice thing to just file our partnership return and bring the K1's over to the personal return. | |
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