LLC Taxed as Partnership

[peggysioux5]

If CA LLC taxed as partnership wants to dissolve LLC, with business continuing after dissolution, is a new Federal EIN and CA payroll tax account # required?

Taxpayer (owner of business) submitted dissolution paperwork to CA for LLC, but continued using existing federal EIN # and CA payroll tax account #’s.  Taxpayer states he has confirmation of dissolution from CA; however, CA has notified business that business owes for several years of LLC tax (taxes for years after dissolution.)  Would CA consider LLC not dissolved if business continues even if dissolution papers filed?

[Lee B]

Yes

[mircpa]

@peggysioux5

File tax returns for all years partnership transacted business even if extending beyond dissolution date.

[BulldogTom]

Did they collapse the LLC because there was no longer a partnership?   What form did the company use to report its tax obligations?   

If you file the 568 returns and show it was still a partnership but do not have a federal 1065 to back it up, you have a federal problem as well because CA will share the information with the IRS and the IRS will come looking for 1065s for all those years (penalties for not providing partners K-1s?)

I would do some digging to find out what happened and when with the entity.  Take it slow and make sure you have all the facts before you start filing the old 568 returns.

Tom
Longview, TX