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Level 3
January 31, 2024

A sole member of an LLC incorrectly filed a form 1065 for 2021 and 2022

  • January 31, 2024
  • 1 reply
  • 11 views

I have a Client who is a Sole Member of an LLC. (Disregarded Entity ). They Incorrectly filed a form 1065 with The member as the only Partner  IRS  AssessedPenalties for two Partners (even though there was only one schedule K  and will not forgive the penalty even though there was only one schedule k-1 ....I plan to amend the personal return and file a Schedule C instead ..... My question is how do I correct the 1065... Do I write a letter informing the IRS that the 1065 is not Valid ? or do I send a superseding indication that the original return is Null and VOID ... ( If I amend the 1065 it is still  late filed return so the penalties might still apply)Thanks 

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    1 reply

    sjrcpa
    Level 15
    February 1, 2024

    It's too late for a superseding return.

    " IRS  AssessedPenalties for two Partners (even though there was only one schedule K  and will not forgive the penalty even though there was only one schedule k-1 ."  How did you or client attempt to get the penalty(es) waived?

    The more I know the more I don’t know.
    RP62_2Author
    Level 3
    February 1, 2024

    We called and wrote a letter that Tp was chronic within the past three years so the IRS said no Waiver 

    sjrcpa
    Level 15
    February 1, 2024

    Chronic?

    Go back and explain no 1065 should have been filed  since it is a SMLLC disregarded for tax purposes, Schedule Cs will be filed, taxpayer has engaged a professional tax preparer, yada yada. Abate for reasonable cause.

    The more I know the more I don’t know.