You are here:

Tax Law (Questions About Taxes)/Investor Revenue Reporting


I am new to a small organization that has disbursed Revenue income to several small investors. The history of reporting at year end has been either 1099Misc (in section 7)or a K-1 report (either was used last year with not very good record keeping of who got what). What is the correct reporting for these investors and when are K-1's due? We are a small S-Corporation. Fortunately - we will be buying out all of our investors this year. We use QuickBooks, and the prior accountant actually set a few investors as "employees" to provide direct deposit. It is a nightmare! I appreciate any assistance.Thank You in advance.

Accountants who do things like that should be fired and terminated and removed.

An Investor has contributed Equity to the corporation. The will get a K-1 for each and every year they are an investor. That means if you bought them out Jan 2013, they get a K-1 at the end of the year.

If the "investor" was merely a lender and gave a loan with interest and principal to be repaid, then the lender gets a 1099-INT for interest you paid him.

No investor or lender gets a 1099-MISC or W-2.

Tax Law (Questions About Taxes)

All Answers

Answers by Expert:

Ask Experts


Randall Klein, MBA, EA


I am an expert in personal and small business taxation, including Forms 1040, 1120, 1120S, 1065. I can answer any type of tax question except those that are requesting help in illegal tax evasion. Tax avoidance is legal, however. I do not do offshore trusts, or opt-out of the tax system type of queries.


25 years real experience in dealing with tax preparation, representation before the IRS, tax problem resolution, and more. Successfully represented clients in Offers in Compromise with more than 95% of all offers accepted.

National Association of Enrolled Agents National Society of Tax Preparers BNI - Business Networking International

Yahoo Answers - recognized as a tax expert.

MBA, Weatherhead School, Case Western Reserve University. BA, Indiana University, Bloomington Enrolled Agent, licensed by US Treasury.

Past/Present Clients
Most of my clients are small business owners

©2017 All rights reserved.

[an error occurred while processing this directive]