Stacy W. asked
I am self-employed and my S-Corp received commissions from various entities. Due to a non-compete agreement, a family member receives payments from one entity, who also works on commission basis with the same entity. The total commission from this entity was $25k for the tax year, with $5k going to the family member, $10k to the S-Corp, and $10k to a salesperson. The family member gets a 1099 for $5k, and the S-Corp 1099s the salesperson for $10k. How should we claim this income to avoid double taxation and potential audit confusion?
May 22nd, 2024
Michael C. answered
To handle this scenario cleanly and avoid potential audit confusion, you should report the full amou...
May 22nd, 2024
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