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What to do with income coming in on 2 different EINs

Forum|Forum|2 years ago
January 23, 2024
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I used an EIN as a sole proprietor for 15 years, so all my 1099-NECs come to me with this EIN. In Jan 2023, I filed with my state as a single member LLC and changed my tax status to an s-corp. The IRS did not officially grant my new EIN for my s-corp until June 2023, but backdated it to Jan 1, 2023. I sent this info to all my clients, but I have little faith they will update their records and anticipate getting 1099-NECs with two different EINs on them.

I will be purchasing the new TurboTax for S-corps. Can I put 1099s with different EINs into turbo tax as income for my new s-corp? Or will I need to only put the ones with the new EIN into TT for S-Corp and the ones with the old EIN into Turbo Tax Home and Business like I did when I was a sole proprietor?

Lastly, can I even ask my clients to re-send 1099 NECs with my new EIN? It should be okay with the letter from the IRS stating the c=corp status was back dated to 1/1/2023...right?

Best answer by ThomasM125

You should enter all income received by the S corporation on its tax return regardless of what is reported on the 1099 forms. The forms listing your old ID number can be entered as self-employment income so that they will match the forms the IRS receives. You just need to enter an expense account on your schedule C for the total of the income reported from the 1099's. That way the expense will cancel out the income. Call the expense mis-reported income or something similar.

You don't need to enter the 1099's with your old ID number into the S corporation return in TurboTax, just enter the income they report as if it wasn't reported on a 1099 form. It is doubtful you could get the issuers of the 1099's to change them, and it may cause more trouble as it could result in double-reported income, so that is probably not a good idea.

T

ThomasM125Answer

You should enter all income received by the S corporation on its tax return regardless of what is reported on the 1099 forms. The forms listing your old ID number can be entered as self-employment income so that they will match the forms the IRS receives. You just need to enter an expense account on your schedule C for the total of the income reported from the 1099's. That way the expense will cancel out the income. Call the expense mis-reported income or something similar.

You don't need to enter the 1099's with your old ID number into the S corporation return in TurboTax, just enter the income they report as if it wasn't reported on a 1099 form. It is doubtful you could get the issuers of the 1099's to change them, and it may cause more trouble as it could result in double-reported income, so that is probably not a good idea.

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