Discussion:Partners get 1099 in their own name
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Discussion Forum Index --> Tax Questions --> Partners get 1099 in their own name
| 11 July 2009 | |
| I have a an insurance agency that is a partnership (llc taxed on 1065) the insurance companies are sending them 1099 in the SS# of the individual partners but we are reporting the information on the partnership return. Won't the IRS be looking for these amounts on the individual 1040s and they will not be there since the individuals will get a K-1
Also even if they both work in the business, can one be identified as a limited parter and one a general or do they both have to be general since they both work in the business Neil | |
| 11 July 2009 | |
| Place the income on a Sch C and back out as an expenses identifying 1065 ID number. This will allow amount to match up with IRS. | |
| 11 July 2009 | |
| I don't do it that way since they are not sole proprietors. I make sure it's already in the corporate of partnership sales and report it as form 1099 sales. | |
| 11 July 2009 | |
| Problem is if you report it as a 1099 sales and it has the SS# of the partners isn't the IRS going to look for it on their returns? | |
| 11 July 2009 | |
| I am coming into this picture after the 1099s have already been issued | |
RoyDaleOne (talk|edits) said: | 11 July 2009 |
| Do what DZCPA suggests, sometimes because of State licensing issues this happens. | |
| 11 July 2009 | |
| I would consider a nominee 1099 from individual to the entity. -- Larry Hess, CPA ~ Albuquerque, NM | |
| 12 July 2009 | |
| can a husband and wife llc do the election for a joint venture and can one of the partners of the llc be a limited partner if they work in the business | |
| 12 July 2009 | |
| how do you file a 1099 nominee? is there a special form 1099 to do it on and then on the schedule C you would put the `1099 income and then under expense I assume you would put the 1099 nominee you issued
Neil | |
| 12 July 2009 | |
| General Instructions for Forms 1099 ..., Who Must File
Nominee/middleman returns. Generally, if you receive a Form 1099 for amounts that actually belong to another person, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other owners showing the amounts allocable to each. You must also furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 with the Internal Revenue Service Center for your area. On each new Form 1099, list yourself as the “payer” and the other owner as the “recipient.” On Form 1096, list yourself as the “filer.” A husband or wife is not required to file a nominee return to show amounts owned by the other. The nominee, not the original payer, is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner. | |
| 12 July 2009 | |
| Lhhesscpa - GREAT idea about the nominee 1099.
I've been going the schedule C route, with a deduction for the amount also included in the company's (in this case a corporation's) income, but going forward, I'll issue the form 1099 and sleep better! | |
| 12 July 2009 | |
| i assume there is NOT a specific 1099-misc called a nominee form but just the person receiving the wrong 1099 then issues a new 1099 to the correct person. Is this correct | |
| 13 July 2009 | |
| Nominee method is for those of you who have lots of free time on your hands. | |
