1099-K nominee???

[death&taxes]

Client received 1099-K for credit card purchases for her successful Longerberger basket business (yes sometimes these actually make a profit!) Problem was that she allowed her daughter to use her system to accept credit card payments for $11,000 for her hair stylist business. I understand that IRS was not requiring the 1099-K income entry on a special line on Sch C for this year but I suspect if it was reported, IRS will be looking for the income and a simple statement attachement would not suffice.

To keep IRS letters away, I was thinking about filing a nominee 1099-K.

Your thoughts would be appreciated.

[Gretel]

If it is true what IRS tells us than 1099-K's are ignored for 2011.

[S T]

This what I found at irs.gov

I received Form 1099-K for 2011. How do I report it on my tax return this year and what are the plans for reporting in 2012?
IRS announced in October that separate reporting of these transactions for other business receipts or income payments is not required for 2011. Taxpayers should follow the form instructions for reporting their gross receipts or sales. Report items that qualify as a trade or business expense on the appropriate line item of Schedules C, E and F. There will be no reconciliation required on the 2012 Form 1099-K, nor do we intend to require reconcilation in future years. [Added 2/10/12]

here is the link http://www.irs.gov/newsroom/article/...979,00.html#q1

Sandy