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Subject:
Reporting two small business as one on a tax return
Category: Business and Money > Accounting Asked by: drew2000-ga List Price: $8.50 |
Posted:
18 Feb 2004 19:01 PST
Expires: 08 Mar 2004 18:54 PST Question ID: 308195 |
I am a sole proprieter registered as an LLC in Texas. My business does internet marketing. Unfortunately I didn't handle my finances well this year in regards to separating business and personal accounts. Therefore, I have credit card bills and 1099s in both my personal name and business name. The 1099s have either my business tax ID or personal Social Security number. Here are my questions: 1. Can I report my income from the 1099s under my SSN with my business income? 2. If so, when entering business revenue in TurboTax Premier Home and Business, does the system let me note the Tax ID or SSN on each 1099 separately? My worry is setting off an audit trigger if I have 1099s under my SSN and they show up on my federal tax ID on the tax return. If this is unclear please ask me questions. Thanks |
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There is no answer at this time. |
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Subject:
Re: Reporting two small business as one on a tax return
From: respree-ga on 18 Feb 2004 19:52 PST |
I'm no tax expert, will offer you my opinion. You will pay tax on this income one way or another. My feeling is to do it right. If the 1099 has your SSN on it, it should be reported on your personal return. If it has your LLC's Federal ID #, the income should be reported on your business return. The income from your LLC (Form K-1) flows up to your personal tax return, since a Federal Return on your LLC is for informational purposes only. One way or another, the government is determined to get their money. When a company issues a 1099, that information is transmitted to the IRS. What 'will' trigger an audit (or at least a red flag) is when Company ABC issues a 1099 to Joe Blow (SSN 123.45.6789) and there is no corresponding income reported for SSN 123.45.6789, they know they've been cheated. Is the system of checks and balances. Not trying to imply you'd cheat on your return, but wanted to make you aware of what happens from a company's point of view. Hope this information helps. Of course, its always best to confirm this information with a CPA tax type, but I believe I'm right. |
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