Paypal issued incorrect 1099 -- HELP!!!

cbstevens11 · #1 (**permalink**) 02-03-2015, 06:23 PM

Paypal sent me my 1099 for my home business today, problem is, I did not start the business as an LLC until June and the 1099 was issued to my EIN. It is showing that my business brought in $20,000 more than it really did since it includes all income Jan-Jun from before I started my LLC. I contacted Paypal so see about getting a correct 1099 issued but they will not do it. How do I report the excess income??

The only thing that I can think of it show the excess $20,000 income but then in turn show it as an expense and just note what it actually is. That way it shows the income, but it's not really counted in my profit since it was never really earned by the business.

Any other ideas??!! Please Help!!!

Wnhough · #2 (**permalink**) 02-03-2015, 08:34 PM

Quote:

Originally Posted by cbstevens11

#1;Paypal sent me my 1099 for my home business today, problem is, I did not start the business as an LLC until June and the 1099 was issued to my EIN. It is showing that my business brought in $20,000 more than it really did since it includes all income Jan-Jun from before I started my LLC. I contacted Paypal so see about getting a correct 1099 issued but they will not do it. How do I report the excess income??

#2;The only thing that I can think of it show the excess $20,000 income but then in turn show it as an expense and just note what it actually is. That way it shows the income, but it's not really counted in my profit since it was never really earned by the business.

Any other ideas??!! Please Help!!!

#1;then I guess you need to report the whole income on yur Sch C and deduct the excess income as other expenses on Sch C.

#2;I think so.