robnyberg[at]sbcglobal.net wrote:

- quote -

I have done this for broker-affiliated clients many times
and have yet to encounter a problem.

MTW

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

<robnyberg[at]sbcglobal.net> wrote:

- quote -

Basically, this is how its done. Most insurance agencies
and broker/dealers won't issue a 1099 to an entity UNLESS
all the members of the entity are duly
licensed/appointed/affiliated with the agency or B/D.

Technically, this is NOT netting. Netting is where you
report the net amount. What this does is report the income
and the assignment separately. You should have no problem.

Gene E. Utterback, EA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I sell insurance through a 2-member LLC that reports
federally on a 1065.

I got a 1099 made out to my SSN instead of the business FEIN.

I questioned the agency's accountant, who emailed back: "If
you are paying your commissions to the entity, all you have
to do on your personal return is to file a Schedule C that
shows the income amount from the 1099. On the miscellaneous
expense line, show nominee payments to the entity and list
its EIN#. Thus, you are netting your amount to 0, and all
the income is in the entity."

I understand the concept of netting, but I've not done this
before, and I want to know what potential problems anyone
sees in this manoeuver?

Thanks,
Rob Nyberg

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->