Level 7

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Wrong name on the top of Sch C

Forum|Forum|2 years ago
November 12, 2023
5 replies
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Hi to all. I received a tax return for 2022 just for a review from new client.

I see on the top of Sch C instead of wife's name as a name of proprietor, the name of husband. What the best way to correction of this mistake. The return already e-filed.

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Best answer by dkh

Sure you can amend a return with any amount changes. Just complete Part III - Explanation of Changes and attach corrected Schedule C.

Shouldn't raise any audit flags. Clients can legitimately have two separate business - one ran by the husband and one ran by the wife

dkh

Level 15

Hi @HOPE2

Does changing the Sched C to name of wife change the tax liability ? Does the wife need the income reported under her SS# for SocSecurity credits ? If the answer to each of these questions is NO - I personally would not amend just to change ownership of the Sched C.

HOPE2Author

Level 7

Thanks, sole prop is belong the wife and Sch C filled out per her job but the tax pro forgot to mark Spouse part on Sch C instated he marked husband part and husband first last name named on the top of the form. Husband has his own Sch C in the return as well.

Does changing the Sched C to name of wife change the tax liability ?

No

Does the wife need the income reported under her SS# for SocSecurity credits ?

Yes

PATAX

Level 12

First, is it possible to even file a corrected or amended return if absolutely no numbers have changed? I do not know the answer to this, I am just asking. The second thing to consider, which is just my opinion, is that a corrected or amended return may be apparently manually reviewed, which therefore may apparently increase the chance of the client being audited, especially since you stated there are two Schedule C forms on the return. This is just my opinion, I may be wrong, and you do what you want to do.

dkhAnswer

Level 15

Sure you can amend a return with any amount changes. Just complete Part III - Explanation of Changes and attach corrected Schedule C.

Shouldn't raise any audit flags. Clients can legitimately have two separate business - one ran by the husband and one ran by the wife

PATAX

Level 12

Thanks dkh for that information. I appreciate it. What I was referring to about a possible increased probability of audit risk was that there may be something on the return itself, e.g. the percentage of a specific expense may be disproportionately high for that particular type of profession or industry.

ljr

Level 9

Had this happen with a new client before. Do the current year correctly. Even if you do not have a tax change for it to be on her social security statement you have to amend. Although we found out that this does not automatically adjust her social security earning statement. There was form that needed to be filled out as well. If I can find the form I will update the post.

IRonMaN

Level 15

Out of an abundance of curiosity, what was the net income reported on the schedule C?

Slava Ukraini!

HOPE2Author

Level 7

$7200

abctax55

Level 15

At the risk of the obvious... what SSN was on the Sch C? The 'name' isn't what matters.

AND, yes if the wrong SSN was used an amendment is needed. Even if the 40 quarters has been met without this income, getting the income posted to the correct person for future benefits is important.

There's no guarantee these two folks will still be married come retirement time.

HumanKind... Be Both

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