Tax Question- Pay Amount on 1099?

affiliate tax questions

[weldonj]

I got 1099s from (very few of) my affiliate partners. And they generally report the amount of income I received in 2002 versus the amount I earned. (Thus in the 4th quarter when sales took off those amounts aren't shown because I didn't get the checks until 2003).

So do I have to report the amount on the 1099 or can I report the actual income I earned in 2002 on my taxes. We're a LLC and will be filing a 1065. I'm just concerned about reporting the income I earned because this will be a different number than the IRS receives and was wondering how others handled this situation.

Thanks.

[jeremy goodrich]

Welcome to WebmasterWorld!

Hm, LLC & other numbers? Sounds a bit complicated.

I would consult with a tax adviser on this, as they could probably make sure you don't file erroneously, and also save you some $$$ on write offs, etc that you might not have otherwise considered.

Good luck with it. :)

I still need to do mine, finished the forms, etc - but have yet to file.

[pendanticist]

Welcome to WebmasterWorld weldonj [webmasterworld.com]

To my way of thinking you'll end up paying taxes based on Pub. 1099 because that is what has been reported to the IRS as having been paid.

However, I'd say give the IRS a call anyway.

Pendanticist.

[DroffatsX3]

Do you use a cash or accrual method of accounting for your business? I use the cash method, so I declare the the income when I receive it, not when I earn it. So for me, I use the 1099s as they are.

[weldonj]

I heard today from 2 of the people we're affiliates with that 1099s only have to be sent out for individuals. Is that the case? We're an LLC.

[DroffatsX3]

When you declare the income has nothing to do with being set up as an LLC. It depends on which method of accounting your business uses:cash or accrual.