1065

[RNuse09]

I did a clients return last year who was in a partnerships whose doors had closed in 2010,it was a restaurant. However we did not file a final return in 2010 because the business was still paying rent and other bills in 2011 for the business. My plan was to file a final return in 2011 and then use the NOL that was created by the business. At the bottom I provided a link of what I am looking at, it's at the bottom of page 3. Now a lawyer is telling her she should have filed for the final return in 2010. I consider paying bills as a business activity. Can anyone give me some reassurance that I was correct.

[RNuse09]

Here is the link

http://www.irs.gov/pub/irs-pdf/i1065.pdf

[jimmcg]

http://www.irs.gov/pub/irs-pdf/i1065.pdf

Tell the lawyer to engage brain before opening mouth. ( or read the 1065 instructions )

[JohnH]

Was there a bankuptcy or other arrangement with creditors involved in the shutdown?

[Gary2]

Or was there any event that would show a dissolution of the partnership prior to resolving the liabilities?

Most lawyers aren't tax lawyers, and most tax lawyers don't know an 8812 from an 8814.

[RNuse09]

Thanks

Thanks for everyone who responded. There was no bankruptcy. I think the lawyer just beleives becasue there is no revenue, and the doors are closed, that the business is closed. He is not taking into account that paying bills is a business activity.