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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 4068
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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Ok someone please help me. So i have a problem and its driving

Resolved Question:

Ok someone please help me. So i have a problem and its driving me crazy trying to figure this out. I have or had an online ebay business using paypal. The problem is that its in my brothers name with his Address, Name, SSN etc. He will get a 1099 from paypal because i have went over the $20,000 and 200 item limit. I collected all the funds and he never seen a dime of it and i dont want him responsible for the taxes i actually owe. I dont think paypal would agree to changing the info on the account. I have noticed i can change it all myself including changing the SSN to mine, address, etc. The only thing im unable to change is his name to mine. I need someone to tell me the best way to handle this. I dont know if i should change all the info and explain somehow when i get the 1099 that its in the wrong name or keep all his info the same and wait untill he gets the 1099 and somehow take responsibility for the taxws myself. Please help
Submitted: 2 years ago.
Category: Tax
Expert:  Stephen G. replied 2 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

Stephen E. Grizey :

First, you should set up your own account with Ebay/Paypal in order to eliminate the problem going forward.

Customer:

My own ebay acct got suspended and thats why i put it in his name

Stephen E. Grizey :

The simplest way to handle the problem, which will raise the least amount of issues, is for your brother to prepare a Schedule C which reports the gross on the 1099, noting that the amount was received as "a nominee for John H Jones (you) and then subtracting the same amount indicating "less amount paid to John H Jones 000-00-000 & reported by him on his 2012 1040".

Stephen E. Grizey :

That will allow the 1099 to be matched to his return and provide for the transfer to you for reporting of the business activity.

Stephen E. Grizey :

Is there some way to get your account reinstated?

Customer:

I cant get it reinstated it banned for life. They have gotten really strict and i had too many negative feedbacks

Customer:

So after he does that what will i need to put on my tax info showing that it was transfered to me?

Customer:

and what document do i use?

Stephen E. Grizey :

You don't have to put anything on your tax return except to complete a Schedule C for your business; you will not need to mention anything about your brother on your return.

Customer:

Ok will i need a 1099 of my own? Do you think this will work and give him no problems?

Stephen E. Grizey :

Your brother can issue a 1099 to you to transfer the responsibility for reporting the income to you.

Customer:

So this should work with no problems?

Stephen E. Grizey :

This is the proper way to handle it & except for the aggravation of including it on his tax return, he should have no problem. If questioned, he would just need to explain the circumstances and why it is being handled this way.

Customer:

Ok i appreciate this so much. I was worried he would be accountable. Is there a way i can come back and see this answer whenever i want?

Stephen E. Grizey :

Yes. You can just look it up under your username/account.

Customer:

Ok thank you i will be leaving great feedback

Stephen E. Grizey :

Please remember to rate my answers in order that I can get credit for my work.

Stephen E. Grizey :

Thanks very much.

Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 4068
Experience: Extensive Experience with Tax, Financial & Estate Issues
Stephen G. and 6 other Tax Specialists are ready to help you
Customer: replied 2 years ago.
I still have another question. Even if i claim the income does the amount on the 1099 or the amount he puts on the schedule C count as his gross income?

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