Question

We're a general partnership. We'll be getting a 1099-m form from a contractor. Do they send us one 1099 or do both partners receive one? Or just our partnership entity?

Forum|Forum|7 years ago
June 6, 2019
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If all the work was done through the partnership activity, then the Form 1099-MISC should be issued in the name of the entity and the number of the entity.

If the form should come in your names and social security numbers instead then you should still include the income on the partnership return. You can nominee the Forms 1099-MISC to the partnership from yourselves by using the instructions below. This will eliminate the IRS looking for the money on the wrong tax return.

Nominee returns. Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received). You must also furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area.

On each new Form 1099, list yourself as the payer and the other owner or entity, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer. The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here: Click here to order forms or publications from the IRS.

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G

GordonSD

Thank you for this solution. A follow up question. Once I file the 1099s for each partner, how do I then represent all this information on TurboTax?

In my case, I receive the total income from the payer, then I distribute the income to the other partners. Therefore, the payer issues me the 1099-MISC in my name only. I of course do not want to be taxed on the total amount, just my share. How do I represent the redistribution of income to the other partners on TurboTax so IRS understands I only keep a small percentage of the total income?

Thank you.