1099 Forms

When a 1099 is issued correctly to your Social Security Number but you deposited the payment into your S corp account and reported it on the corporation's Form 1120-S, the error is yours and not the payer's. The income belongs on your personal Schedule C, and the S corp return misstated it. If the 1120-S has not yet been filed, the fix is straightforward: keep the income off the corporate return and report it on Schedule C where it belongs. Once the 1120-S is already filed, the options are more complicated. A Schedule C reporting approach with an offsetting expense can satisfy the IRS matching system, but it carries real risks and is not a formally blessed procedure. Whether to use that approach or amend the 1120-S depends on the dollar amount, the facts, and preparer judgment.