1099 misc and LLC's

Hi All,

New here so I ask for a bit of patience. Your responses to questions from others has helped me greatly.

On point then:

My son and I are floor installers. We are both officers in an LLC that we formed together. We are the only members of the LLC. Our LLC is registered with the state of Minnesota and has a registered EIN with the IRS. My son is registered as the senior officer. 

We received four 1099 misc forms for sub-contract work we performed in 2011 from four different companies. 

Some of the work we performed together and some individually. 

As such we decided to split the 1099's in half. Two for him and two for me. We filed our personal 1040's using the income from the 1099 misc forms.

I received notification from the IRS that my son's income was not associated to the two 1099 misc forms that we used for his part of the earnings of our LLC. 

Instead it is their understanding that I failed to include the two 1099's used by my son as my income. They apparently have not associated these two 1099's to his income. 

The IRS would like the subsequent tax/penalty/interest on this so called undeclared amount which at this writing is $10,991.

My dilemma is how to respond to the IRS. Is there a form that I should include in my response? 

I have to respond by 7/31/13. 

As it is I intend to lay out the explanation much as I have here.

Source: http://www.asktaxguru.com/8174-1099-misc-and-llc-s.html