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Partnership Dissolved and Later Reinstated

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    Partnership Dissolved and Later Reinstated

    Client created a LLC with the partnership tax structure in 2015 for rental real estate and ended in 2017 and a final 1065 tax return was timely filed after selling the real estate. All ended with the partners on good terms. I suggested them to disburse the funds an closed the bank account. However just came to know that they never closed the bank account but did disbursed the funds and two years later reinvested some money under the same partnership name and made a profit. Client himself reinstated the LLC at the state level. Now the profits from this new venture are being distributed in 2021 under the closed partnership name and they want me to file tax return. The new venture that they started under the old LLC can not change anything. The funds from new venture will come under old LLC name which they plan on depositing the bank account.

    Not sure if I can reinstate the closed partnership with the IRS or amend the 1065 or DO What??
    Can never understand why clients create these kind of issues but I am lost any suggestions....

    #2
    Entities marking returns final then filing subsequent returns seems to be a fairly regular occurrence. Probably not optimal, but it does happen.

    A partnerships isn't required to file a return if it didn't have any income or expenses. So they should be fine for 18 though the 19 & 20 returns are late.
    "Taxation is the price we pay for failing to build a civilized society." ~ Mark Skousen

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