I changed the structure of my business from a partnership LLC to a sole proprietor. How do a file?

[epica]

I had a two-member partnership LLC. When we obtained our EIN, the IRS instructed us to file a form 1095 which I've done every year. In October 2020, I changed the structure of the business to just be myself on the LLC. How am I supposed to file 2020 taxes and how will I file in the future? The member removed received NO income from the business in 2020 and was not part of the business in 2020. I still use our original EIN as of right now.

[Mike9241]

you need to file a final partnership return for 2020 reporting all its activity thru the date it ceased to be a partnership.   you may want to consult a tax pro because there can be some tricky tax issues when a partnership terminates especially if partners have negative capital a/c's, you are using the cash basis and there existed inventory or trade receivables, debt, property, etc. from then on the activity gets reported on your schedule C. do not use the partnership EIN on your schedule C or for any other purpose. if you prefer you can apply for an EIN as a sole proprietor, it's not required but then you may have to furnish your SSN to third parties so they can file required tax reporting forms.   since the partnership seems to have terminated in October 2020 a final return was due 2/15/2021. so now it seems to be late with a potential penalty of $200/month/partner - another reason to using a pro.  

[epica]

Thanks for the quick response! Honestly, there was none of those issues with the partnership termination—it was pretty clean. 

So, 2020 will be reported as normal then, correct? Meaning, I won't file the final partnership return for 2020 AND report Nov-Dec 2020 as a schedule c, right? I assume I'll just use my K1 for 2020 as I typically do. 

Now for 2021, it sounds like I need to file for a new EIN. Do I need to do anything with the old partnership EIN once the final 2020 return is filed? 

[epica]

In regards to the final form you referenced, are you referring to the final form 1065? Is that date documented anywhere. 

I do need help from pro, I don't disagree with you there!