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Level 5
February 23, 2020
Question

1065 Vs. Schedule C

  • February 23, 2020
  • 1 reply
  • 0 views

Was doing a Schedule C, later notice the client pulled out an IRS feid notice stating that "they must file a 1065." I believe the issue is that when he first registered his company, he put that he was a partnership. He did say that was his initial plan, but the other partner fell off, even before the company had any earnings. So what choices do we have? Should he just file schedule C and if the IRS sends him a notice of not filing a 1065, just send a copy of the schedule C? Or should he do an 8832? Thank you. 

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1 reply

Just-Lisa-Now-
Intuit Community Champion
February 23, 2020

Many years ago I had a similar situation, we filed a 1065 with zeros on it, marked it initial return and final return and reported everything on the Sch C.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
mvp2885Author
Level 5
February 23, 2020

Will this affect his Feid? The company wishes to continue operating as a Single Member LLC, using the same federal ID. 

Just-Lisa-Now-
Intuit Community Champion
February 23, 2020

Ahhh, this wasnt an LLC that I had.  Sounds like the SMLLC is using the wrong EIN if that EIN was assigned to a Partnership.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪