Llc

[S T]

Husband and Wife formed an LLC in 2003 and applied for EIN#. They are buying vacant land and sub-dividing, then selling. For 2003 and 2004 there were no transactions or income generated.

Since there is an EIN# would you file a tax return (1065) for 2003 and 2004.

Sandy

[Gretel]

Filing 1065's

Yes, I would file returns and just write "No activity" across the first page. I am surprised the IRS didn't send a letter yet asking for them. This is what I had happen.

[DTS]

Llc

Sandy,

According to the rules, as I read them, a P'ship is not required to file a return if no income was rec'd and did not incur any expenses. It goes on to say that the entity could be terminated when business or financial operations are no longer carried on by any of the partners. I assume this is not the case.

I can see where you may want to file to avoid the the appearance of the latter, but it appears, you don't need too. ??? Maybe, do as Gabriele suggests, file just to avoid an inquiry later.

Dennis