Tax Strategy Blog for Business Owners

What to Do About Incorrect 1099-NEC Reporting and How to Avoid Overpaying Taxes When the IRS sends you letters, pay attention! Especially if you receive something called a “1099-NEC” form. It might mean you're being taxed on money you never actually received in that year. ❌ And you will NOT overpay the IRS - not […]

When the individual production activity of a partner is outside his/her capacity as a member of the partnership, the partnership has 2 options:

1. Designate the production income to the partner, and have the partner treat the expenses as unreimbursed partner expenses (UPE).
2. Manage the partner as a 1099 independent contractor for the individual production.