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LLC RETURN

  • 1.  LLC RETURN

    Posted 8 days ago
    Client informs me he formed an LLC (2 partners) to buy real estate to fix up and sell. LLC was formed in April 2018.
    Real estate was purchased in April 2018 and sold in early 2019. However, purchase and sale were done in joint individual names by partners.  LLC was never utilized.
    I would like to dissolve LLC. No partnership return was ever filed or ID # obtained in 2018.
    Form 1065 instructions state every partnership must file unless it neither receives income or incurs deductible expenses. Do I file a final for 2019 and if so will the IRS assess late filing penalty for 2018 which I believe is $210 per month times number of partners (similar penalty for NY).
    Any thoughts to end LLC without penalties.

    Ken
    -------------------------------------------------
    Kenneth Schuster CPA
    6800 Jericho Tpke  #209W
    Syosset, NY 11791
    (516) 364-1600 (Voice)   (516) 364-1603 (Fax)




  • 2.  RE: LLC RETURN

    Platinum Most Valuable Member
    Posted 8 days ago

    If I am understanding you.

    The LLC was formed for a purpose, and thenit was never used.

     

    Firstly, I do not believe that the tax penalty attach personally.   ( perhaps other will comment on that )So therefore, does it make a difference if the penalty happens.

    Secondly if you did file an initial and then final, the IRS would abate for first time offense. .

     

    It seems that the IRS is not going to be looking for a return, as no FEE EIN was obtained.

     

    If it functions like a corp, NYS will only allow the dissolution once the DTF NYS has reacted to a final return.

     

    So you need to ask yourself do you follow with a return, fed and state, wait for clearance, and then dissolve, or do you let NYS simply dissolve by proclamation.

     

    BTW    can you get paid for the work.

     

    I am not directing you what to do, just putting some points out there in this public forum.

     

     

    Abby

     

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Ext  2   Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@KurciasAlhanteCPAs.com

    ( E mail response preferred )

     






  • 3.  RE: LLC RETURN

    Posted 8 days ago
    Abby,
    Interesting thoughts to consider.  Any additional comments appreciated.

    Ken
    -------------------------------------------------
    Kenneth Schuster CPA
    6800 Jericho Tpke  #209W
    Syosset, NY 11791
    (516) 364-1600 (Voice)   (516) 364-1603 (Fax)







  • 4.  RE: LLC RETURN

    Posted 7 days ago

    Hi Kenneth,

     

    To my understanding you don't have a 2018 filing requirement so there would not be any penalties.  Filing a 2019 tax return would not cause penalties for 2018 since again there was not a filing requirement for 2018.

     

    I'm not sure if you have to file a final tax return for a dissolution but you can call the Department of state to find out.  I have a phone number in my files but I have not used it for some time so you may have to go to the website; 518-473-2492

     

    If you do have to file for 2019 in order to file for a dissolution (which I doubt) you will have to get a tax ID#.

     

    Paul

     

    Paul D. Tusa, CPA, MBA                                              
    Business Consultant, Financial and Tax Advisor

    TUSA & ASSOCIATES CPA, P.C.                                
    Certified Public Accountants
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