Should I file an amended 2017 return for an LLC that closed in 2017 but had carryover income in 2018 or should I file the income the K-1 income in 2018?

Vee · ‎June 6, 2019

The LLC in question closed in 2017 however some cash was held back to cover expenses and taxes. At the end of 2018 I received a 2017 K-1 for the remainder of the distributions. (The form says it is for the calendar year 2017 or tax year beginning 01/01/2018 ending 11/30/2018. ) I paid taxes on the main distribution in 2017, however, should I close the LLC again in 2018.

Confused

WillK · ‎June 6, 2019

I can see how this would be confusing.

If the K-1 has 2017 on the top of the form you will need to file an amended 2017 return to report the K-1.

If the K-1 has 2018 on the top, then you would file the K-1 in 2018.

The final return for the business should be filed in 2018 since there was cash that came over in 2018. It can be a zero return to close out the business, but that way the IRS does not get confused.

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Should I file an amended 2017 return for an LLC that closed in 2017 but had carryover income in 2018 or should I file the income the K-1 income in 2018?

After you file