ABC, LLC, a Single member LLC (disregarded entity) receives a 1099. If the single member is XYZ, LLC, the income has to be combined with XYZ, LLC's activities and ABC, LLC doesn't file a return. Will the IRS be asking for ACB's tax return since they got a 1099? How will the IRS know that this income is reported by XYZ, LLC?
-
-
The SS-8 reported that ABC, LLC, is a disregarded entity. So the IRS knows that ABC, LLC, will not be filing a tax return; and the IRS knows that XYC, LLC, is the sole member of ABC, LLC.
What type of tax entity XYZ, LLC, is will determine how the ABC, LLC, income is designated on the tax return. -
I don't understand what the SS-8 has to do with my question. As i understand, form SS-8 is filed with the IRS to determine if a worker is an employee or an independent contractor.Comment
-
Disregarded Entity
I think Lion is referring to Form SS-4.
In other words, when ABC, LLC applied for an EIN, what kind of entity was identified on the EIN application?
BMKBurton M. Koss
koss@usakoss.net
____________________________________
The map is not the territory...
and the instruction book is not the process.Comment
-
It is an LLC that has been dormant for a while. It had two members in the past and now it has an LLC as its single member.
Even if you indicate on the SS-4 that this is a disregarded entity, the instruction on form W-9 says that you give the EIN of the owner (XYZ) and not of the disregarded entity. So if you did get a 1099 for the disregarded entity will you have a problem?Comment
-
Sorry, SS-4 (I was dealing with some employment issues so the 8 was on my mind).
No one can guarantee you won't have a problem, but you should be able to craft a response that lays out the ownership and where the Form 1099 income was reported and why. I don't understand your question, as every disregarded entity reports income NOT on its own return but on the return of it's single member whether that's an individual, a partnershiip, a corporation, etc.Comment
Comment