Hello. I'm hoping someone can help answer my questions. I'm running into conflicting information. My husband and I have run a partnership since 2000 and have always filed a 1065 with corresponding K1. I'm tired of doing the 1065. The IRS keeps separating our K-1 and sending nasty notices about late info filing. They have always been attached. I'm fighting them now over $4K in penalties because of this and had to appeal a denial. I've read about just reporting the income/expense on our jointly filed 1040 with 2 Sch. Cs allocating the share of ownership (90/10). My husband does materially participate. Although after reading through other posts here I see a few suggesting you have to report the income/expense 50/50. I've read other areas that say you can report in the percent of ownership.
I filed an extension for our 2022 1065 and have just now read about doing this QJV. Our 1065 is due the 15th. Is it possible to just amend our 2021 1065 as a final return and then file all of the 2022 partnership information on our 2022 1040 using the schedule Cs?
I've read we can just elect to do the QJV on our 1040 and if we get a letter from the IRS saying we failed to file our 1065 that we just need to call or mail them a letter stating the income is reported on our joint 1040.
Is it really this simple or am I missing something? We are in Texas. We do have one employee that we pay wages to and report with our partnership EIN. I've read that I need to get a new EIN for one of us to continue reporting taxes and link it some how to our partnership EIN.
Any feedback greatly appreciated.
