Welcome Guest. Register Now!  


CPA Forums CPA related topics.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 08-08-2014, 06:26 PM
Epetrarcaepetrarca
 
Posts: n/a
1065 question

In 2010 my wife an I started a DBA for our new consulting service we started. I immediately became Ill and never contributed any work effort to it. For 2010 true 2013 I filed the earnings all under my wife's SS using a schedule C and paid all taxes due. I just received two notices from the irs wanting to know why we did not file the 1065s for 2010 and 2011. Do I have to refile my returns along with the 1065s or can I check one of the exception boxes in the back of the notice and explain that I was a passive partner all theses years?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 08-11-2014, 02:42 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by Epetrarcaepetrarca View Post
In 2010 my wife an I started a DBA for our new consulting service we started. I immediately became Ill and never contributed any work effort to it. For 2010 true 2013 I filed the earnings all under my wife's SS using a schedule C and paid all taxes due. I just received two notices from the irs wanting to know why we did not file the 1065s for 2010 and 2011. Do I have to refile my returns along with the 1065s or can I check one of the exception boxes in the back of the notice and explain that I was a passive partner all theses years?
In general, the IRS regards your LLC as a partnership UNLESS you formed the LLC as qualified joint venture(you can set it up as QJV only if your state is a community pty state ; QJV is a special tax situation in which a husband and wife jointly running a business that is not a corporation may qualify to file as a sole proprietorship rather than a partnership. The IRS has determined that in the case of spouses owning a partnership, they do not need to file as a partnership on Form 1065, with individual K-1 forms;however to set it up as QJV, your entity shouldn’t be a SMLLC/ MMLLC) or sole proprietorship (where you hire your spouse as an EE and issue her a W2 then you can file Sch C/SE in lieu of complex 1065; If your spouse is your employee, not your partner, you must pay FICA Medicare taxes for her. The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and fica taxes, but not to FUTA tax).So as you said, aslongas you and wife started a DBA and then you hired your wife as your EE and issued her a W2 , then you do not have to amend your Sch C/SE unless your biz was a PS. So unless your biz was qualified joint venture or a sole proprietorship, then you need to file your return as a PS(you need to file form 1065).i guss you need some accurate professional help from an IRSEA/ a CPA in your local area for more accurate info in detail.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
K-1 form 1065 enstorms Income 0 03-23-2014 01:23 PM
form 1065 (k-1) enstorms For 2013 0 03-21-2014 01:53 PM
LLC - Form 1065 - Schedule B-1, Part II Sammie Limited Liability Company 1 11-09-2013 12:46 PM
Reporting box 2 on K-1 1065 marieb4 Income 0 03-26-2013 06:19 PM
Should I Ile A 1065? HVELIC Limited Liability Company 1 03-31-2009 10:00 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.