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No LLC, Only partner - filing a form 1065?

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    No LLC, Only partner - filing a form 1065?

    I was under the impression one of my kids music instructors was going self employed for the first time so I emailed her options. She replies back thanking me and telling me she has been self employed for yrs and files form 1065 via TurboTax. I checked with the AZ-St and her business in not an LLC. What advantage would she have filing a Partneship (as the only parnter) vs. a Schedule C?

    #2
    Why would she file a partnership return when she says she is solo? If what she says is correct, I can't believe the IRS hasn't contacted her and told her she can not file the 1065. I really think she may not know what she is saying. There is no advantage to using the 1065 vs a Sch C in her scenario.
    You have the right to remain silent. Anything you say will be misquoted, then used against you.

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      #3
      I guess by the time IRS gets done with her - she'll be singing a different tune - or,
      screaming up an octave.
      Tell her she's not as sharp as she thinks she is - she's real flat.
      Uncle Sam, CPA, EA. ARA, NTPI Fellow

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        #4
        Two Points

        It strains my credulity to believe that even TT would allow a Partnership return with only one listed partner.

        Assuming she is doing a partnership or some other entity return taxable income and perhaps other things should be flowing to her 1040. I feel sure she is making errors if she is doing that at all.

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          #5
          Whadda ya wanna bet she has her husband listed as the other partner? Give us some feedback on this one.

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            #6
            And as long as he does the tax return

            Originally posted by Burke View Post
            Whadda ya wanna bet she has her husband listed as the other partner? Give us some feedback on this one.
            they technically would have a partnership since he's doing work for the "partnership".

            Comment


              #7
              Nope, she is not married

              Originally posted by Burke View Post
              Whadda ya wanna bet she has her husband listed as the other partner? Give us some feedback on this one.
              Now she realizes she didnt have a clue on why she filed a form 1065 and she wants to go the Sch C route in 2011.

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                #8
                Better go back and fix the other years too

                Originally posted by AZ-Tax View Post
                Now she realizes she didnt have a clue on why she filed a form 1065 and she wants to go the Sch C route in 2011.
                Cuz the IRS will want to know where the "partnership" went.

                Big mess, big fees

                Comment


                  #9
                  I don't know. Assuming she reported all the income on her 1040, and paid SE taxes, there would be no change. She just might wait to see if she gets any letters.

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                    #10
                    Has your client paid any partnership fees that partnerships are subject to - that were
                    erroneously filed?
                    Uncle Sam, CPA, EA. ARA, NTPI Fellow

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