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my client has LLC and EIN but 1099K shows owner's Social security # as payee. Can I file my client's tax return with the different Tax ID?

xuan150279
Level 3

My clients tried to update the EIN but for some reason, merchant company dont update and send the old tax ID: owner's SS#. Is there any way for me to fix the problems? 1099-MISCs for the business with EIN have been already submitted to IRS. Can I correct the 1099-MISC with SS# or

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Just-Lisa-Now-
Level 15
Level 15

If its an SMLLC, then the W9 tells you to use your SSN, not EIN  Since an SMLLC will be reported on a Sch C on a 1040 using the SSN. 


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9 Comments 9
Accountant-Man
Level 12

You can always file a return with more income. Just add the 1099K income into the rest of the 1099-MISCs received.

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clang-services
Level 1

 I would advise client to call the merchant issuing the 1099K for future and have it corrected. I had a client who was deducted withholding and it was a nightmare to get it back and could only do it through an amended tax return.

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Just-Lisa-Now-
Level 15
Level 15

If its an SMLLC, then the W9 tells you to use your SSN, not EIN  Since an SMLLC will be reported on a Sch C on a 1040 using the SSN. 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
clang-services
Level 1

Ahh yes, I was thinking corp

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xuan150279
Level 3

Thank you for all your answers. However. 1099-Misc are issued by my client using the EIN to the independent contractors doing service for her business. This is expense, not the income. Please tell me how to deal with this situation. thanks all for help

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qbteachmt
Level 15

Yes, it's appropriate that your client issued 1099-Misc using their FEIN. And it's fine that your client got a 1099-K from another entity reporting the funding activities. These are 2 separate tasks and the responsibility lies in the issuer. They don't need to relate.

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Terry53029
Level 14
Level 14

For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or employer identification number (EIN) for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN. See this link to read full IRS instructions.

https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-compan...

xuan150279
Level 3

Thank you for your answer. It is very helpful. if my clients are partnership(2 members), Is there any problem ? I should use EIN instead of SS# and correct 1099-misc has been issued to the contractors?

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qbteachmt
Level 15

Your info has been very confusing.

If you have Partners in an entity and you are asking about the activities related to this entity, then there is no Owner, for the LLC, and there is never a SSN. Let's review:

Your client(s) was hired and paid by someone; that work meets the 1099-Misc reporting requirements. That means whoever gave that W9 either did it wrong, or was hired individually and not through their LLC.

Your client(s) had work performed by others or paid for business expense or expenditures that meet the 1099-Misc reporting requirements, and if the LLC hired and paid and is the entity benefiting from that expense, then the LLC issues the 1099-Misc and the LLC is the reporting entity and the LLC uses its FEIN on the form.

Only Humans can have a Social Security Number. The multi-partner LLC is not a Human.

Now you have to figure out what activity happened and who it belongs to. And whose tax return you are preparing and whose tax forms you are responsible for.

You cannot change the info on a 1099-Misc when you are not the responsible party. Your client would notify this issuer that the entity info is Wrong. 1099-Misc can be corrected and reissued. You have the same opportunity, to fix anything you issued that was wrong.

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"Level Up" is a gaming function, not a real life function.