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Tax Law (Questions About Taxes)/Corporation and 1099-misc


I formed a corporation in 2011 and reported a loss.
For 2012 tax year, I had a profit of $13k for my corporation. All my expenses for the corporation are being reported on the corporation forms.
I issued myself a 1099-misc in the amount of $32,000 because I was the only employee of the business.
Do I write off expenses on a SCH C for the $32,000 or do I need a K1?


Thanks for your question.

Writing yourself a 1099 from your corporation is inappropriate and is likely to get the attention of the IRS.

You need to pay yourself a "reasonable salary" complete with payroll deductions.  This is an IRS requirement.

If you have elected S Corp status, you would also issue yourself a K-1 for the profit (not distributions) earned by the business.  If you are not an S corp the Business must pay taxes on the profits and any distributions to you would be taxable to you as dividends.

Hope this helps.

John Stancil, CPA  

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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