mardi 24 février 2015

Reconcile 1099-MISC within a partnership

We are a group of about 5 people in a partnership. We complete work as Independent Contractors in an online Marketplace. We also perform some work outside of the Marketplace.



Employers hire ICs through the Marketplace. The Employers will issue a 1099-MISC to each individual who earns more than $600 per year, and optionally issue one below $600. The Marketplace issues a 1099-K to each IC.



The Marketplace requires a SSN for each IC.



Three out of 5 ("high-stakes") of the partners use all 5 Marketplace accounts to complete work. The remaining 2 ("low-stakes") partners use only their own Marketplace accounts. The low-stakes partners complete only around 10% of the work completed on their account. (The remaining 90% is completed by the high-stakes partners.) However, Employers send a 1099-MISC to these low-stakes partners for the full 100%.



In the past all five partners have joined incomes on a 1065 return. Then the partnership redistributes the income accordingly. The partnership issues a Schedule K-1 to each partner. All income is reported and taxed. However, an Employer's 1099-MISC does not match the low-stakes partners' income as reported.



Is there any way to reconcile this?




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