The IRS Audit Blog

Posts Tagged ‘form’

Question: Help Closing an EIN for LLC (Partnership) – Do I need to file a final 1065?

I have web development company that was started in June. There were originally 2 owners – set up as a partnership in a LLC. We filed for our EIN and got one for a partnership. The other owner has left the company and I have setup a new EIN to reflect the new classification of the LLC – a sole owner. I was informed to write to the IRS in Cincinnati OH, but the IRS agent also said I might need to file a 1065 using the old EIN before using the new one.

So… do I need to file a 1065 marked as a final return? The thing is that we haven’t had any income/expenses yet (going by a cash method) so if I need a 1065 do I just fill it out with all 0′s? Also, do I file a 2007 1065, since the biz never operated in 07 and I can’t find any 08 forms.

If I do need to file a final 1065, do I just send it to the IRS in Cincinnati WITH the letter requesting the closing out of the old EIN?

Thanks in advance for the help

Answer: If the LLC was created in June 2007, yes you will have to file a 2007 tax return. Just put zeros and answer the LLC questions on the form. Because we are in 2008, you will have to file a 2008 tax return and make sure to mark “Final Return” on the front of the 1065 form.
If you are not going to use the LLC any longer, dissolve it as soon as possible. Depeding on your home sate, you might be charged fees ($500-$800) if you decide to keep it, not including the hassle of filing returns.
Don’t forget to file state tax returns as well.

Santander Fin Pref – Tax Certification

Santander Fin Pref – Tax Certification

Question: Form 1099 and estimated tax?

I made about 7 grand working under 1099. I gotta do Form 1040es for the federal during next two weeks.

I understand that I can claim deductions for business related expenses (meal, transportation, cell phone bill and etc). How do you claim deductions for such expenses. Is there a seperate IRS form for calculating such a deduction? AND DO YOU BETTER BE READY TO FURNISH EACH AND EVERY RECEIPTS FOR SUCH EXPENSES? I don’t have all the receipts.

How do you do the likewise for the state of Maryland?

Advice will be appreciated.

Answer: You will add a Schedule C form to your 1040 and you will not be able to file a 1040ez, i.e. you’ll have to itemize to get the business deduction, but in your case it will probably be worth it. And yes, officially you’ll need receipts, but if you never get audited…

Maryland will (most likely) take your net income from the federal form.

IRS Faces Tough New Duties Under Health Overhaul

The tax agency would be responsible for checking whether individuals get required insurance, distributing billions of dollars in subsidies and collecting new taxes and penalties.

Illegal Immigration In Eastern Carolina Part 1 – WITN

Question: Does anyone know a website to help fill out the 501 tax exempt forms from the IRS?

I need clear and consise instructions!

Answer: yeah, www.irs.gov

Secrets of the homebuyer tax credit

The homebuyer tax credit has little-known rules that can help or hurt your chances for a refund.

How to Complete and File a 1040A Tax Form : 1040A Label and Exemption Tips