Discussion:1099misc for 1120s shareholder

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Discussion Forum Index --> General Chat --> 1099misc for 1120s shareholder

Everettlove (talk|edits) said:

27 October 2008
i have a friend (husband and wife) who own a 1120s corp.. their cpa issued 1099misc as well as k1s

it has been my experience that is in error to receive a 1099misc (nonemployee compensation)if you are a shareholder in a scorp

the 1099misc reported 20k and 30k repsectively and on the k1 has ordinary income minus 6246)(-6246) and reflects no distribution to shareholders.

what consequences could occur if irs when it receives the 1096 and the corp return, match the two together and come up with oh oh

Kevinh5 (talk|edits) said:

27 October 2008
we don't know the entire story, but either they don't take the CPA's recommendation to do payroll for themselves, in which case they are idiots, or the CPA doesn't follow IRS rules, in which case they are idiots for not finding a different tax advisor. Either way, they need to change something right away.

JR1 (talk|edits) said:

October 27, 2008
Use that little yellow search box to the left and you'll find lots of posts on this.

Everettlove (talk|edits) said:

29 October 2008
thanks for the input...

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