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1065 and single member LLC

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    1065 and single member LLC

    I understand single member llcs just file through a schedule c on their 1040. However I have a client who by accident when he complete his ss-4 said he was a partnership. I was in process of filing a schedule C for him, but later he showed me the irs notice of feid registration and said he must complete a 1065. What are the options? IRS has him registered as a partnership. How can he change this so he can complete a schedule C for 2019?

    #2
    I have run into this situation many times. Taxpayer forms a LLC or Partnership on the advice of some legal guru. But in reality they are owner operated home based business with no employees (selling Children's clothes online or "stuff" on Ebay). I file Sch C because they are a disregarded entity. Use the Soc. Once in a while they get a notice from IRS about an outstanding 1065. I respond with a note that it is a disregarded entity and copy of Sch C attached and it generally takes care of the problem and no more notices,
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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      #3
      The SS4 is not binding on what tax form to file. If it is a single member LLC file on Sch C. Fortunately partnerships with no activity don't need to file a 1065 so the IRS won't be chasing for the 1065.

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