A disregarded entity reports all its activities under an S Corporation and had a 1099 reportable transaction. Would the S corporation report the 1099 or the disregarded entity
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I don't understand what you mean by "reports all its activities [under another entity]", but the 1099-NEC (assuming that is the specific 1099 form you are referring to) should be reported on the tax return that corresponds to the recipient's TIN on the 1099-NEC. In rare cases, a nominee 1099-NEC can be used. You ask if the disregarded entity should "report the 1099-NEC", but previously you said the disregarded entity does not report separately, so which is it?"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard -
Are you asking which one would ISSUE a 1099 if they paid $600+?
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X is a DRE and all the activities are reported by an S Corporation called S. In other words if X has 100 of income it does not file a return and all the 100 of income is reported by S. X had reportable 1099. Would X file a 1099 or would S?Comment
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I'm pretty sure an S corp can't own a sole proprietorship, so you must be talking about a partnership. Why isn't the partnership filing its own return and 1099 forms, and then simply providing K-1(1065) forms to the S-corp as a partner? Or are you saying that the disregarded entity has elected to not be taxed as a disregarded entity, in which case what exactly are you asking?
Or in other words, how is it that the "X" DRE you mention does not have a filing requirement?
Maybe if you provided a simple example it would help you get an answer to your poorly worded question.Last edited by Rapid Robert; 01-31-2023, 04:38 PM."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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There is no longer a DRE (LLC) because it elected to be an S Corporation. All reporting is done by the S Corp.Originally posted by Florida_EA View PostThis post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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Are you saying this business received a 1099-MISC or 1099-NEC? If so, throw the 1099 in the garbage (well, okay, return it to the client) and as you said, just report the income on the S. Don't bother entering the 1099 into the software (unless there is withholding).Comment
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Originally posted by Rapid Robert View Post
The corporation can be the sold member of a LLC. The LLC can conduct a business, and because the LLC is disregarded, the business is reports the income (in this case, the S-corporation).
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