As an S-Corp in California, will I receive a "W-2 like" form reporting the income that was paid to my company by each payee? Is this income even reported to anyone like it would be if I was an employee? I've kept pretty good track of all of my income, but it's always nice to be able to compare it to official forms.
"SCorp" wrote
It's called a Form 1099-MISC, and maybe you'll get them, but you'll know if someone will send one, because you would have to have given them your company name and TIN, generally on a Form W-9.
Form 1099 series goes to the IRS (and possibly the state), so yes, it's reported.
There's a good chance of an audit if all you report is exactly what was reported via a 1099 instead of reporting your actual revenues. Now, getting the 1099 information is good as an internal audit tool to see if what they report they paid you is what your records indicate was received (fraud in your office or theirs is often caught in this manner). So if you find a difference, talk to the management of the otjher company after you are sure of your numbers.
-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net
If you are an employee of the corporation you will receive a W-2. If you are a shareholder, you will receive a K-1. If you are both, you will receive both. Unless you are closely involved in the operation of the S-corp I expect your records to match the K-1 only be coincidence.
You're thinking in terms of receiving forms 1099's from the payers. These are not required when the payee is a corporation, so don't look for any. But your corporation may still get one or two, because some payors don't distinguish and send them out to all vendors anyway, corporate or not, required or not. Just be on the lookout for any 1099's which may be issued in your name and number however. You should have made sure each check you got was made out to the corporation, and if not, you may get 1099's. At that time you need to get the payors to make corrections, or failing that, include them on a schedule c with your 1040, but also subtract same amounts as an expense on page two of the schedule c in order to zero out. There, that should cover it.
ChEAr$, Harlan Lunsford, EA n LA
I hope you don't think I'm making a career of nit- picking you, but if I remember correctly, SOME professional corporations SHOULD get 1099s. Legal services is one, I believe, which ought to give the rest of us pause for thought as to why.
We occasionally get 1099-Misc forms from clients. Invariably, our EIN is formatted like a SS number! We throw them away unless they are clearly wrong. Its hard to know what use they are, since the sender has no idea what accounting method the receiver is using, so there isn't really much that can be realistically matched up by the IRS or anyone else.
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