Myself and one partner have an LLC. The LLC started business in 2015. We accepted payments but had a net loss in 2015. Due to this we didn't...

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Customer

Myself and one partner have an LLC. The LLC started business in 2015. We accepted payments but had a net loss in 2015. Due to this we didn't believe that we needed to file a 1065. The LLC didn't do any business until 2018. We are late filing our 1065 and believe that we need to file the 2015 1065. Are there any suggestions on how to avoid penalties for this mistake?

Last updated
Barbara Blacklidge
Tax Preparer

Welcome to ExpertHelp.  My name is Barbara, I am an Enrolled Agency credentialed by the IRS, and I will be happy to assist you.

 

If a partnership has income and expenses, Form 1065 is required to be filed.  You should file Form 1065 for all years in which you had income and expenses.

 

If the IRS assesses a penalty for late filing, you can request an abatement of the penalty.

Posted
Customer

Thanks Barbara. So if there was zero income, the form 1065 is not necessary? I had correspondence with the IRS about this and they made it sound like "no income, no 1065"?  Is there anything that I can do prior to the submittal of these late forms to avoid penalties, or make it more likely to receive abatement?

Posted
Barbara Blacklidge
Tax Preparer

The IRS has no knowledge that you have no income/expenses.  As I mentioned, Form 1065 is not required to be filed if there is no income and expenses.

You cannot request an abatement of a penalty before the IRS assesses it.

Posted
Customer

Thanks.  I don't fully understand the rules for submitting Schedule L. Is this a necessary document?

Posted
Customer

 I've also been waiting to send my personal tax return until after I submit theb1065's. Is it advisable to send the my 2018 return, the 2018 1065 and the 2015 1065 in any particular order? 

 

Also, us it Mandatory to submit schedule L under this curcymstance?

Posted
Barbara Blacklidge
Tax Preparer

The 2018 1065 is late.  It was due on or before 3/15.  

You will mail the 2015 and 2018 1065 in separate envelopes to the IRS.  Use certified mail, return receipt requested.

You can file your 2018 1040 at any time.

Posted
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