1065 Partnership/ Sole prop. mi

[jadira1021]

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

[dkh]

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.

[qbteachmt]

"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?

[jadira1021]

Hi, 

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

[qbteachmt]

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.

[jadira1021]

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]

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

[TaxGuyBill]

As was asked above:  Is this in a Community Property State?