Client filed SS4 and checked Line 8A(Type of entity) Corporation with Form 8832(Client did not know what he was doing). The business is a sole proprietor LLC registered with the State. IRS sent the EIN# and told the client to use Form 1065 for taxes. How do I change withe the IRS. ??Form 8832 or do nothing. Just file the tax return with a Sch C with EIN#
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TheIRS wants a single member LLC to file the Sch C, unless the client wants to file as a corporation which it doesn't sound like he intended. So that's what I would do and deal with any letters from theIRS down the road. Everytime I filed a 1065 for that type of entity theIRS always sent a letter saying to use the Sch C, not the partnership return.
Daniel"A man that holds a cat by the tail learns something he can learn no other way." - Mark Twain -
File the "C"
This is not the "preferred" way to do it, but the "effective" way to do it. As you know, dressing up in the Kings clothing doesn't guarantee you the Queen.
I would file the Schedule C as Sole Proprietor. This is ultimately the entity that the client is obligated to file. Even if you write the IRS and drag this through their hierarchy and achieve the correction with them, this is what will have to be filed in the final analysis.
Filing the Sole Proprietor actually gets the tax preparation accomplished. The other task at hand may take extensive correspondence, Taxpayer Advocates, and stretch out for several months or years. But you will at least have his tax preparation up-to-date by the time the dust settles.Comment
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