I have client who has bizarre situation:
1) Filed 1120S for 2017 late, assessed late-filing penalty, now in process of being abated.
2) Has yet to file for 2018 or 19. All income was deposited into her personal bank account from “Square”—but they reported using her 1120S #.
Client would like to file an amended 2017 to finalize the S-Status and report all subsequent income on a Sch C. Square is being rather jerking and does not want to amend their 1099s to her SSN (even showing this is where the funds were deposited to).
Two Questions: 1) Can we file an amended 2017 1120S to make it finalized (obviously before the closing window); 2) Pick up the subsequent income on her Sch C even tho Square issued 1099s to her 1120S. This is particularly important because she has NOT filed those 1120S for years 18 or 19.
It’s a mess and an IRS Roulette Game I think....any suggestions and advice? Thanks in Advance.