Can 1099 under personal name be added to S-Corp income?

Forum|Forum|5 years ago
February 10, 2021
2 replies
17 views

Client started LLC in 2020 and will be making late s-corp election. He received 1 1099 under his personal name instead of the LLC name , can this income be added to S-Corp? Or must I add it to Schedule C? The same company issued a 1099 under personal name for portion of the year's income and another for the LLC.

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qbteachmt

Level 15

"can this income be added to S-Corp?"

Has he notified that payer with the info required for the S corp (using W9) and asked them to issue Corrected 1099 for both the personal info and the LLC info? I think you are describing two different EIN were used, which is why they issued two 1099? They can file corrected for those two; there is no need to send a 1099-NEC to the S Corp.

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qbteachmt

Level 15

Oh, what about this part: "and will be making late s-corp election"

Until that is accepted, there is no S Corp. And what does "late" mean? Was there payroll in 2020?

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Z

zinaaranaAuthor

Level 2

No payroll in 2020. S Corp started mid last year and planning on filing late S-Corp relief. You can file 2553 with the tax return and request late relief election. I believe he started the business before creating an LLC therefore a 1099 was issued under his name and SSN for the portion of payments, he most likely did not fill out the W9 for the business as an S-Corp and received another 1099 for the business using the EIN. I wonder if the company that issued the 1099 would be willing to correct it? In that case he didn't need to receive a 1099 at all.

qbteachmt

Level 15

Why is this not a 2021 start, then? What are you going to do about 2020 payroll for this person in the S Corp? That's pretty late, now.

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