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

[RP]

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 

[sjrcpa]

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?

[RP]

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

[sjrcpa · Accepted solution]

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.

[BobKamman]

I think what you mean is that even when you cite reasonable cause, the abatement request defaults to "first time waiver," which requires perfect filing record for three years.  Then it's denied only on that ground. Might work to try again with Taxpayer Advocate.  Might not.