Contact UsHello. I have an LLC, it's an entertainment booking agency. Last year I booked a bunch of shows for my brother's band. W9s were required. The venues they played cut the checks in my name, I deposited them into my bank account and I cut checks to pay the band members.
I kept none of it, made $0.00 profit. Every dollar was paid out to the band. How do I report this on schedule C? Do I even have to report it?
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Tax Professional Answers
Randy Tarpey
The 1099 miscellaneous form you will receive needs to report as gross income the checks from the venues to you. You need to issue 1099 miscellaneous forms to the band members by January 31, 2017 showing the check totals you paid to each band member. You can then report this amount as a deduction on Schedule C and your Schedule C income will be zero. It's important you follow these steps because the venues are already setting in motion with the IRS a process that could cost you a lot of tax or penalty if you don't properly file your taxes or required 1099's for tax year 2016.
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378 weeks ago
Question Owner
Thanks Randy. Appreciate the respons. I spoke with a CPA earlier this afternoon and he told me since each band member made less than $600 on the shows I don't need to send them a 1099. Do you agree?
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378 weeks ago