<paul.a.burgess[at]gmail.com> wrote:

- quote -

If this payment is for Prizes or Awards, it should be Form
1040 Line 21 Prizes/Awards income, not subject to SE tax.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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paul.a.burgess[at]gmail.com wrote:

- quote -

The first question is whose income was it? Was the payer of
the prize aware of the corporation's existence? How did they
get your SSN? Did you submit the plan in the name of the
corporation and/or yourself as officer? Was it the
corporation's business plan, or a different one? In the
latter case, it can be viewed by IRS as the skill of the
person who wrote and submitted the document, if writing
business plans for people is not what the corporation does.

If properly corporation income, don't worry about IRS,
because a 1099 doesn't mandate a tax treatment. If IRS
inquires re your 1040, you have the proof as to whose income
and how handled. I would report it on the Other Income line
of the 1120, so that a copy of 1120 Page 1 should be
sufficient to mail IRS to end the matter.

Fred F.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

My business was recently awarded a cash prize for winning a
business plan competition. However, the check was made out
to me personally instead of the business. Being naive, I
signed the check over to the business and deposited it in
our business account. Is there a way, for tax purposes, to
have this award go directly to our company (a C Corporation)
without me being taxed personally? I talked with the
organization that cut me the check and they said there is no
way for them to do anything since the check was already
deposited. Is this true? Could I give the money back and
have them cut another check directly to the company without
there being any ramifications from the IRS (besides the
corporation getting taxed)? Could they make the 1099-MISC
show that the money went to the corporation? I do not want
to pay self-employment income taxes on the prize as it would
be financially bad for me and the company. Any help or
insight would be appreciated.

-p

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >