Partnership Question

[cmc]

A partner in a 2-person partnership decides they no longer want to be involved in the business. This partner refused to remove their name from the business. The remaining partner wants to continue the business as a s sole proprietorship.
How would the business tax returns be file?
Is there a form to file with the IRS to convert the business to a sole proprietorship?
Can the business keep the same EIN?
How would the remaining partner notify the IRS that the partner is no longer involved in the business?

[ATSMAN]

I have been through this issue once before and it is not pretty! If one partner is NOT cooperating then the terms of the partnership agreement (if it even exists) will be key. If NOT then check your state regulations for dissolution of partnership when a partnership agreement does not exist.

Sole Prop will have new name and new EIN because essentially that old partnership is defunct! Sole Prop will file Sch C.

[spanel]

A partner in a 2-person partnership decides they no longer want to be involved in the business. This partner refused to remove their name from the business. The remaining partner wants to continue the business as a s sole proprietorship.[/FONT]
How would the business tax returns be file?

File a 1065 for the final year and Mark Final on it.. IRS & State returns

Is there a form to file with the IRS to convert the business to a sole proprietorship?

No

Can the business keep the same EIN?

The partnership is dead.. therefor there is nothing to keep. If a partner wants to start/continue without the other, they need to start over with everything (ein/bank account/etc)

How would the remaining partner notify the IRS that the partner is no longer involved in the business?

Again.. filing the 1065 and marking it final, kills the partnership.