1065 Error

[Carolina1900]

Hello  

I need some advice, I have a LLC (1 owner) last year a new accountant filed my taxes using a 1065 form and the irs sent me a paperwork that something was wrong and when I called they said that I need to file a 1120s .

my company is an LLC ( 1 owner) I was always filing using an schedule C however when I asked my accountant he said that everyone was getting the form because the irs made some changes but I think he is wrong….

My company have 1 owner only and I should file a schedule C , when  explained to the irs they told me to file a 1120 I don’t understand neither 😕 Maybe I didn’t explain it correctly. 

now the letter I attached say to contact them and let them know but I never did because like I mentioned above the accountant told me is ok… what should I do for this year ? Because the bank for a house loan told me that I should file 1120 to save some money instead of schedule C but the accountant is telling me that He can’t do 1120 until the irs give me an authorization:/ so confused 

also if I filed the 1065 form for and was incorrect did I pay less or more taxes ? Should I admend  do or just leave it ? 

[sjrcpa]

You need a new, better accountant.

[George4Tacks · Accepted solution]

https://www.irs.gov/tax-professionals/choosing-a-tax-professional

https://irs.treasury.gov/rpo/rpo.jsf

"new accountant" - tells me they lied about their credentials or you assumed. Go back to them as they should as a minimum return you every penny they charged you and if they do have proper credentials should correct the issues for no charge (and give you refund for their gross incompetence.)

[Carolina1900]

Ok thank you for the advice about the accountant but still looking for assistance if LLC should file schedule C or 1120 and if I can do 1120 how ? Together with my new income taxes or separate form and what about the wrong from 1065 doesn’t matter now ? I paid like over $11k last year back in taxes and I got like $1k back I don’t know why I got money back … not sure if it’s because the wrong form was file and I over pay or I was suppose to pay more and now I’m going to own $$ 

forget about the accountant for now 

[sjrcpa]

You need a competent accountant/tax professional.

Strangers on the internet cannot fix this for you.

[Carolina1900]

I’m not asking to fix my problem . 
I’m asking if anyone filed the wrong form and what they did ? I guess I need to just do the Schedule C for now . 

my bad to ask for an advice about the 1120 form everyone is just pointing at the accountant instead of the actually question .

[abctax55]

@Carolina1900 

You are new here, so you may not realize that this forum is intended for tax pro's to help other tax pro's with Intuit software.

Tax return prep is how we make our living; you need to consult with a tax pro that you pay to fix the problem that exists.   Sorry *if* the accountant you hired made a mistake; you could ask them to fix it IF they made the mistake.

Bonus - just "filing a Sch C" when the IRS is asking for something else isn't going to fix the problem.

[qbteachmt]

@Carolina1900 

Your accountant is an idiot. The fact that you don't know why you got a refund, or if it is okay for the bad 1065 to stay, etc, also means you don't have anyone giving you good guidance. That means stop working with anyone you are already working with.

There is no such thing as Single Member partnership. Yet, the 1065 is a Partnership tax return. Your LLC is not a Partnership. A single member LLC means the LLC status, which is a State designation, is ignored for Federal purposes. That is why it is called Disregarded Entity.

You file a Sched C as part of the Form 1040 = your Personal taxes.

1120S is for S Corp. 1120 is for C Corp. Do Not File These unless you know you entity has incorporated, or has notified the IRS that the LLC wants ("elects") to be treated as an S Corp. And that means Payroll; that's because corporations are their own entities, and now you would be an Employee and payroll is required. This is one reason a single-member LLC typically does not want to be treated as a corporation, because they often can't afford steady, routine, regular payroll + employee benefit packages, when the income tends to be generated by the efforts of that owner and only as that owner brings in the business and gets paid.

"Because the bank for a house loan told me that I should file 1120 to save some money instead of schedule C but the accountant is telling me that He can’t do 1120 until the irs give me an authorization:/ so confused"

Stop listening to these people, and also don't pay attention to the barber or the neighbor. If you ask a hammer how to cut wood, it would tell you to keep hitting the tree. Not about using a saw.

"also if I filed the 1065 form for and was incorrect did I pay less or more taxes ?"

Who knows? Not even your accountant, apparently. But you Should Know; the forms are easy to read and review. Find a good friend that is successful in business and find out who they use for Business advice and tax preparation. There is nothing like having a guru available to you; and they are worth every penny.

Do you ever listed to the Dave Ramsey Show? He has a phrase he uses: You want someone with the heart of a Teacher.

[abctax55]

Because the bank for a house loan told me that I should file 1120 to save some money instead of schedule C 

OMG...SMH...  That's worse tax advice the barber/mechanic/friend's brother's sister-in-law give.

[George4Tacks]

Getting advise here as to what to do is even worse then getting advise from the bank.

FIND A COMPETENT TAX PROFESSIONAL NEAR YOU TO DISCUSS THIS WITH.