Husband & Wife operate farm. Agriculture office suggest having partnership formed for possible additional farm subsidy payments. Husband and wife fail to file pship return and report everything on sch. f. Taxpayers receive letter from IRS stating they are looking for form 1065. Tax year is 2005 . All income reported, yet on sch F. Should taxpayer files 1065 and amend 1040???---or send a letter explaing what took place?
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Write a letter back to IRS and say there is no penalty for failure to file Form 1065 because the husband and wife partnership meets the exception described in Rev. Proc. 84-35.
Also, read this thread: http://www.thetaxbook.com/forums/showthread.php?t=35 -
>>Taxpayers receive letter from IRS stating they are looking for form 1065. <<
Sounds like the IRS is just "looking" for form 1065 so you should be able to let them know the taxpayers filed form 1040 Sch-F and all income properly reported. In most cases the notice has a statement you can check the box that the form is not required to be filed. If so you can "ignore" the need to demand that there is no penalty for not filing a partnership tax return.Comment
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To be two F's or not to be
Here's an interesting (albeit dated) take from the enemy's camp on the 1065 question:
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