1099-NEC Issued to my disregarded business entity using my SSN

Forum|Forum|3 years ago
January 30, 2023
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I have a single-member LLC which is a disregarded entity. When I fill out a W9, I put my name on line 1 and my LLC's name on line 2. For the TIN, I use SSN, since it must match line 1 as instructed.

Most 1099-NECs I received show both my name and my LLC name on them, and use my SSN as the TIN.

However, I received one from a large job that didn't include my personal name, but just my LLC, yet it uses my SSN as the TIN. The payment was made to my LCC, if that matters.

Since the SSN doesn't pair with the disregarded business entity name, will this pose a problem? Or will it be easily sorted because it is a disregarded entity and the business would be easily associated with my SSN?

Also, would this type of error be considered Type 2? It's not really the wrong recipient, as in the completely wrong person, but it just needs to have my name added as well. In order to correct, would I need to get Payer to simply submit a corrected return simply adding my name?

I read somewhere for the wrong name (which I assume to mean the wrong person), not only do you have to enter a corrected return with the right name, but update the wrong name with an amount of zero to show that none was reported to the wrong person. However in this case, I'm not sure if that is necessary because it is to the right person, it just needs additional info added (my name) that would match the SSN on the 1099-NEC.

Any help would be appreciated!

Not A Product Question

GeorgeM777

No, this should not present a problem because your 1099 reflects the correct social security number. You can request that your client submit to you another 1099 that includes your name on line 1; however, if that is not possible, then prepare your return and include the 1099 that is missing your name.

As a single member LLC, the IRS disregards your entity and considers you, for tax purposes, the same as it would a sole proprietor. Thus, include all of your 1099s, and any other income, on Schedule C Profit or Loss From Business.

@tj5823

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