1065 Partnership/ Sole prop. mi

Forum|Forum|4 years ago
April 19, 2022
3 replies
7 views

Hello,

I need help on what to do with my client tax return. I was under the impression that my client was formed as a single- member LLC. Today I found out that it was formed under both husband and wife (multiple LLC). I have been doing her taxes every year under a Sole Prop. instead of having done it under a 1065 and issuing K1's for her and her spouse. What should I do to fix all this mess?? When was the date to file a 1065 or have issued K1? Please help!!

Thank you

ProSeries Basic

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dkh

Level 15

Deadline to file return or extension for 1065 was March 15th.

I'd ask to see the SS-4 letter which will indicate which type of return IRS is/was expecting. You'd think there would have been notices sent if IRS was expecting 1065s but didn't receive any for several years.

J

jadira1021Author

Level 3

Hi,

Do you know what happens if the return is filed late?

qbteachmt

Level 15

Late filing includes interest if there is tax due (as opposed to expecting a refund) and late fee. That's why the option for extension exists, to help reduce the costs if you won't make a due date for a client. Some States already have extended their due date because of weather events. My State did this.

Don't yell at us; we're volunteers

qbteachmt

Level 15

"I have been doing her taxes every year under a Sole Prop"

So, they would have both been done on Sched C, and as Joint Venture. Or, you are required to put them on 1065? Is this a community property State?

Don't yell at us; we're volunteers

J

jadira1021Author

Level 3

Hi,

Customer sent SS4, the Sole selection was checked. When the customer went to the Secretary of State to register business, she ended adding her husband to the business.

dkh

Level 15

That is exactly why clients should let those that know what they're doing complete that type of paperwork.

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