Forum

1099 issue.
 

I be straight as I can with this.
I was requested last year to put tax id on paypal, so I got EIN LLC sole prop. and put the ein in last year. No issues. During 2013 the 2 accounts that went over 200 and $20,000 last year, I received the 1099 form this year around January. First account sold around 30,000 and second just went over the 20,000.

The problem is when I got the 1099K the payee name was under the stealth name not business name!
I got this email from paypal few months ago. Saying the IRS said the names don't match, and to correct it.
Here a copy
http://i58.tinypic.com/2eof7tl.jpg

So I learned this year (WISH I knew before) that if you got LLC as corporation or partnership, or Corporation, the 1099 will the "Payee Name" in the business

SO recently I change the LLC from sole to LLC as partership, a new EIN and updated the changes the EIN on paypal on both accounts.

My problem is paypal is still showing the old 1099k with payee in the stealth name not business, and not updating it. I guess there will never update it.

What accountant is going think when they see the 1099K under a different name, and not under the business? Even worse I worry about the IRS will think of this! Will I be at risk of an audit?

Since the EIN number was correct on the 1099 form but not name, I file my tax with that number and paid my taxes on it.

Do think I will be okay or screwed?

Re: 1099 issue.
 

Ok. Just keep reporting your income.

Re: 1099 issue.
 

You will be OK.

Keep on with fulfilling your tax obligations.

IRS want that.

Re: 1099 issue.
 

Thanks for the replies.
Even if the 1099K For 2013 has the payee in the incorrect name? Should I worry about this, because the irs sent them a request about the miss match a few months ago this year, even though I report both 1099K on my tax since they had the TAX ID correct.
But next year the forum should show the payee in the business, since I got new EIN and change the LLC from sole to partnership.

I am losing sleep over this, because of the what ifs! I guess I am paranoid.

Re: 1099 issue.
 

No reason to loose sleep. Seriously.

Re: 1099 issue.
 

Okay thanks, I report all the income I received on the 1099k and put all my expenses and pay my taxs, glad this screw up isn't any thing big.

Someone told me that "Stupid things happen in business all the time. As I said in my post your excuse is that you went into business with a guy who set everything up then disappeared. Your accountant won't ask anything, and the IRS won't ask anything. As long as you pay your money to the IRS they wont ask any questions."