I sell sunglasses on Amazon. I own the products and warehouse them. For various reasons not pertinent to this question, I use somebody else's (referred to as John) credntials on those sites (i.e. John is registered as the owner of the accounts on Amazon).

End of each year, the 1099K is sent to John under his SS#. John does not own any products, does not perform any work and is not paid anything. No 1099MISC is issued to him and there is no W2 for John. No payroll taxes or workman's comp is paid for John. The income from Amazon is sent to my bank account throughout the year. These are the facts of the situation.

The question is how to handle paying income tax. Up until last year, John did his taxes based on the 1099K that was sent from Amazon and I cut out the check to pay the tax. (For simplicity sakes, let's just say I paid my own income tax based on some other income under my name but I was not connected to the Amazon income). However, with the Obamacare and other reasons, we no longer want to pay the tax under John's name but under my name. Given how the relationship is established and how we ran the business as described above, what is the correct way to transfer the Amazon income from John to me? Can we do a 1099MISC transfer of income from John to me? What is the correct way?

As you have been avoiding tax in some form and the arrangement you have is a tax avoidence scheme it would be better for you to come clean and refile paying the correct amounts. You can reestablish your accounts with Amazon etc.

It is interesting that Obamacare should flushout cases like these

Money was made and tax was paid in full - albeit under different person. How was tax avoided?

If you split income you do so to seek a lower tax rate on both filings, when the income is aggregated it maybe that a different rate or circumstance might apply. Even if there was no actual avoidence to engage in concealing income is illegal, but obviously if income is artificially lower it creates a potential of fraud under Obamacare.

http://www.moneychimp.com/features/tax_brackets.htm
I don't know why this person sought to conceal income using a false identity, there are a number of possibilities, alimony, child support, tax avoidence, gaining advantage by deception, avoid legal obligations. The best course of action from a tax perspective is refile and have the matter adjusted

And to expand upon what paraclete said... the IRS can and will likely seize your assets until you can prove beyond any doubt the deception you have engaged in is other than what it really is. Good luck getting money to pay for a legal defense if that happens. Your own assets as well as "Johns" wouldl be seized by the Government. And this will be long before the trial.

And it appears you have been violating a number of laws... including one banking law called "structuring" in which they have a wide latitude to define. Oh, and your buddy John is going to be in a lot of trouble too. If he's a fictitious character... that compounds the problems you are facing.

Oh what a tangled web we weave when first we practice to deceive

An old proverb