Love those 1099-k's

[astroantics]

Client converted bar business from sole proprietor to S-Corp on 04/01/11. Received a 1099-K from credit card processor listing entire year of sales under old Federal ID#. I sent the vendor a W-9 with the new ID, requesting they issue a corrected 1099-K. No response to date.

If the IRS is not looking for a reconciliation for the 1099-K (http://www.accountingtoday.com/news/...-61708-1.html),
mayhaps I can file the three month schedule C with sales for the 1st three months listed. No place on the 1120-S to put the S-Corp portion.

Opinions?

[JohnH]

Not required

My software (ATX) says to enter -0- on line 1 for 2011 for the 1120S.
I think your client gets a free pass this year.

Probably a good thing, because since you asked the issuer to make changes to the originals, they will most likely double up on everything.

[S T]

Agree with JohnH - my software also states not to enter an amount on income lines for 1099K - so on all returns that had a line for 1099K in the software for 2011 filings - I ignored, and entered as usual as "Gross Receipts" based on Accounting Records - disregarding method of payment (i.e. cash, credit card, etc)

Year 2012 could and more than likely will be a different story.

Sandy