1099-MISC made out with SS# rather than EIN (proprietorship, payment, proprietor)
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My husband owns an LLC which he does his web development/design work thorough. Just today we got in the mail a 1099-MISC from one of his clients that was made out to his SS# rather than to our business. All money that he has received from this client was paid to our business in 2010.
Is it acceptable for me to still file this under business income, or do I need the client to send a revised 1099 filled out with our business name/EIN rather than my husband's social security number? Does this even matter, as it's an LLC sole proprietorship and thus a pass-through entity anyhow?
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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EIN or Social doesn't matter, the IRS just needs one or the other to match the 1099 up with your tax return to make sure that you declare the income.
When he does a W-9 he should use the EIN, I don't like giving out my social security to customers, you never know if you can trust them or some employee there who might want to steal identities. On the W9 form the
SSN is meant for private individuals, like winners of large amounts at casinos
or lotteries.
EIN or Social doesn't matter, the IRS just needs one or the other to match the 1099 up with your tax return to make sure that you declare the income.
When he does a W-9 he should use the EIN, I don't like giving out my social security to customers, you never know if you can trust them or some employee there who might want to steal identities. On the W9 form the
SSN is meant for private individuals, like winners of large amounts at casinos
or lotteries.
Thanks! That's kind of what we thought, just making sure.
Honestly, we're a little creeped out because my husband doesn't ever remember giving him his SS# or filling out a W-9 for that matter. We're not exactly sure how he obtained his social. But yeah, for all W-9s we use our EIN for the same reasons you've mentioned.
Put a schedule in your 1040 reconciling the reporting of the 1099 income as to where it is reported. When there is a discrepancy between the 1099 and your reporting of the income, the return is "surveyed" by a person in the Service Center. They look at the return and see if it apparent that you reported the 1099 income. If they can't tell from the return, you get audited. If there is a schedule in the return that sets forth the name of the Payor, the ID number, the amount of the payment and the line reference in the 1040 where it is reported, or the ID number of the LLC where it is reported, you don't get audited.
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