1065 HELP

[Terry1010]

Is it possible to withdraw a previously filed 1065?

I have a client who previously filed 1065's for 2011, 2012, 2013, 2014 as advised by his previous tax adviser. His tax adviser perhaps assumed or perhaps the client implied that he was partner in his brothers LLC which he legally was not. Now the IRS is asking his brother (sole member of LLC) to file 1065's which he never filed because of being sole member of the LLC and filed the returns as sole proprietor as usually done in cases with sole member LLC's.

Can 1065 be amended to show $0 amounts and noted in explanation that it was mistakenly filed? Can we then file Schedule C return as sole proprietor?

Thanks for help!

Terry 

[ILLMAS]

What a mess, ask for a huge retainer for all the work you’ll be doing if it’s possible.  How about just filing a zero 1065 for 2107, report the revenue and expenses on Sch C and sentd the client back to the prior preparer.  Sometimes it’s stinks trying to be a superhero.

[Gail in Virginia]

Interestingly, today's Checkpoint email was about an LLC that filed 1065's late in 2010 and 2011, and then claimed it was a disregarded  single-member LLC and did not owe the penalties.  NOT the same situation as your client, but close enough to be an amazing coincidence.  If you are curious you can look at TC Memo 2018-35.