A client that has an S-Corp but received payments issued to her personal SSN instead of the corporation EIN, can I issue the corporation a 1099 form from her personal SSN to offset that income from her personal on to her corporation?

[LaraMultiservices]

Client that has an S-Corp received payments issued to her personal SSN instead of the corporation EIN, is it possible to issue the corporation a 1099 form from her personal SSN to offset that income from her personal on to her corporation?

[dkh]

I've had this happen... I entered 1099 amount on Schedule C income then did offsetting expense on Other Expense line  as "income reported under S Corp EIN xx-xxxxxxx"    

[Just-Lisa-Now-]

where did the money get deposited?

[LaraMultiservices]

It was deposited to her personal account

[qbteachmt]

Let's take this a bit at a time:

"can I issue the corporation a 1099 form"

Corporations are exempt from 1099-NEC reporting, for the most part.

"from her personal SSN"

Only a Business would be subject to issuing 1099-NEC, and she is not running a business outside of the S Corp.

"to offset that income from her personal on to her corporation?"

Nope. None of that is going to make sense.

She can send a W9 to the issuer, who would Void the Individual SSN 1099-NEC. There is no reporting for the S Corp except for specific services (law firm, for instance).

She gets Payroll. 1099-NEC is not part of her relationship between herself and her employer (the S Corp).

[dkh]

So client received actual payments not just a 1099 issued in her SSN that should have been for corporation ?     If that money was never reported as income for SCorp then I take back my previous answer

[qbteachmt]

This is not unusual when a person is told to form an S Corp, but no one really explains to them how to operate as an S Corp. Of course she could have headed this off as soon as the first payment arrived. And she should be signing contracts as President, with the Inc info, so that someone on the other side would have thought to confirm with her, in the first place. And she should know not to deposit anything unless it is the Paycheck from the S Corp; that customer payments go to the business entity. And, she should be shown how to fill is a W9 to show the S Corp is excluded for 1099-NEC reporting. And, and, and, as usual; including making sure there is Reasonable Compensation paid to all shareholder-employees, even if that is only her, because the IRS requires this.

All the money she got directly cannot just be reported as "not mine." It is supposed to be S Corp revenue, and she takes home money via Payroll. Not freely.

[Lord Happy]

Happy day...I did not want to pass up the opportunity to throw gas on the fire.  Depending on the type of business the person is in, it may be perfectly reasonable for them to receive a 1099-NEC, despite having an S-corp.  See Fleischer v. Commissioner.

<insert fire references from popular '70's songs here>

[LaraMultiservices]

She did receive a 1099 form issued to her SSN 

[sjrcpa]

She files a Schedule C for this personal income.

[qbteachmt]

"She did receive a 1099 form issued to her SSN"

Because she failed to provide an accurate W9 to that customer?