A few follow-up comments:
- First, you need to understand a forum such as this is not the best for addressing complicated partnership tax issues. There are just too many questions and no documents to review to get a complete understanding of what has occurred.
- I am not for hire. Just someone with a significant background in the partnership tax arena attempting to provide some direction to those struggling in this area of tax; all volunteer, not part of TT.
- Not sure your definition of "large firm", but the rates can be high.
- Part of the problem is a firm may have set this up, and an understanding of the tax consequences to the members was not passed down. That happens. Additionally, it appears that now smaller firm(s) are attempting to understand the transaction, and as I indicated previously, the partnership tax arena is not for the unseasoned.
- Check with your area Chamber of Commerce for tax professionals and call a few to get a feeling for their understanding of the situation and whether they believe they can be of assistance.
- But once again, I don't believe you have a significant tax liability. Hopefully you have a copy of all of your K-1's (and your personal tax returns) since the inception of the LLC. This will be key for any tax professional.
- A copy of the operating agreement should also be provided to your tax professional.
- Good luck.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
