I’m trying to clean up a tax situation for a small LLC and could use some guidance on the best way to move forward.
-LLC started in 2019, taxed as a partnership
-Only tax return ever filed was for 2023
-2019–2022 returns were never filed
Business had very minimal income/expenses most years (was active, but barely)
-We recently dissolved the LLC at the state level and are shutting everything down
-We received an IRS bill for 2023 but misplaced it and haven’t responded yet
-We do have access to bank records for all years
Main questions:
-What’s the correct order of operations here? File all missing partnership returns first before contacting the IRS?
-Should we call the IRS now to see what they show as owed, or wait until we file everything?
-Are there penalty relief options (first-time abatement, reasonable cause, etc.) for a small/inactive business like this?
-Since it was a partnership, how much risk is there of penalties per partner for late filing even if income was low?
-Is this something we can realistically fix ourselves using software, or is it worth hiring a CPA/EA given the situation?
-Anything specific we should do since the LLC is already dissolved?
We are idiots, we know. Thanks for any help.
Unfiled partnership LLC taxes (2019–2022), dissolved LLC, small income. What’s the least painful way to fix this?
byu/Hot_Capital8515 intax
Posted by Hot_Capital8515
1 Comment
FYI Per partner penalty not based on revenue.