Client has a Partnership with 4 partners and all 4 partners sold their partnership interests to 2 purchasers at the same time. This was done in August 30, 2020. Under the old rules it seems this would close the partnership but under the new rules, since the Partnership is still in tact and the business is still operating, isn't the Partnership still in existence and not closed? It is the individual partners who sold their interests. If it is true that the partnership is still open (and not forced to terminate) then how does the transition take place when there are 2 different accountants. If I am the accountant for the original 4 partners, do I just provide the new accountant for the new partners a trial balance as of the date of sale? Then, am I relying on the new accountant to issue K-1's for the original 4 partners? Who prepares the 1099's for the period from Jan. - Aug. 30, 2020? My client seems to think there will be a final 1065 for him and that he must issue 1099's to the subcontractors he used, but it seems to me that if the partnership never closed/terminated then technically the new owner/partners must handle all of this administrative stuff. I want to get my ducks in a row prior to contacting the new accountant or the new partners to make the transition smooth. Anyone know how this should work?
Thank you.
Thank you.