Reporting 1099 INT within an incactive LLC sub S

miggroupllc
miggroupllc Member Posts: 2 Newcomer
in Situation & Life Changes

Hello. I was on W2 since 2021 but also have an LLC Sub S since 2020 (single memeber) . It was inactive (no sales from 2022-2023), however some banks sent me 1099 INT for several bonuses on new checking accounts opening. How do I report this "bonus" income for 2023? Thanks!!!

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  • miggroupllc
    miggroupllc Member Posts: 2 Newcomer

    SORRY MISTYPED it should be INACTIVE

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  • RyanZ
    RyanZ FreeTaxUSA Agent Posts: 70

    Even though the entity is "inactive" the IRS expects to receive a tax return every year, even if there was no activity, until the entity is deregistered with the state(s) and IRS is notified of a final return.

    The appropriate way to report the interest income is to include it on the 1120-S tax return, so that it is included on the K-1, which you will report on your personal tax return.

    You could go ahead and include the interest income on your personal return, but that would NOT be an excuse for not filing the 1120-S.

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