Did Not File Partnership Return (1065) the Year the LLC was Dissolved

[r2kinvests]

I formed a two-member LLC in 2019 and filed the partnership return (although it was late and I used First Time Abatement to waive the fee). In 2020, we dissolved the business and did not incur any losses or income. As such, we did not file the 1065 form since that was an exception. However, the issue is that a 2020 filing might be required to mark the return a final return despite having no income or losses. In order to avoid the 2020 late filing fees, would it be possible to amend the 2019 filing and mark it as both initial and final return? Thanks!

[Anonymous_]

Did the LLC, as a partnership, receive any income or incur any expenditures (treated as deductions or credits) during the 2020 tax year? If not, then a 1065 is not required to be filed.

See https://www.irs.gov/instructions/i1065#idm140377998428192

[r2kinvests]

No, it did not. However, we did close the business in 2020. That's why I'm not sure what to refer to. It says that you must file a return when you close the business. Wondering if I can just amend the 2019 return and mark it as final.

https://www.irs.gov/newsroom/closing-a-partnership

[Mike9241]

can't be sure but filing an amended 2019 return might be regarded as being file late since it has info (FINAL) that should have been on the original return.  did the LLC have any assets at the end of 2019?  if so it couldn't have been terminated that year.  also filing a final 2019 return when it actually wasn't terminated until  2020 could cause more issues than just late filing penalties.  you may want to seek professional guidance. 

[Anonymous_]

@r2kinvests 

Note that @Mike9241 brings up a couple of excellent points and asks an important question.

If there were absolutely no assets owned by the LLC at the end of 2019, then you might want to explore further. If there were, then you should definitely not consider filing an amended 2019 return marked as final.