Have a Tax Question? Ask a Tax Expert
Hi, my name is Mark. I will be happy to help you with your questions. You are still able to report the 1099-K under the LLC. The individual who received the 1099-K would need to report this income as other income on his or her 1040. They would also need to offset this amount with the description reported under EIN# ***** name of LLC.
Since the IRS will match the 1099-K to the individual's return it is necessary to report the income and them reverse it with the above description.
I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.