Some comments related to your questions:
- When the LLC was formed, in a community property state as stated in the facts, you had the option at that point in time to either file as if the entity was a single member LLC (with two owners) or file a partnership tax return since the entity is "technically" a multi-member LLC. You elected to file as a partnership; and filed form 1065.
- Any deviation from this requires following the formality of an entity conversion; liquidation in your case.
- As a result, I agree with @Anonymous_ in that you need to file a final form 1065 for 2023. Make sure the 1065 indicates final as well as both K-1's.
- There are a number of technical issues that result when a form 1065 (partnership) liquidates, however, since you are filing as husband and wife on a joint tax return, I would imagine most of these issues would not be applicable. Don't have near sufficient facts, but just my guess.
- You do not need to file form 8832 as doing so will only complicate the matter with the IRS.
- The EIN assigned to the LLC filing as a partnership will no longer be used.
*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.
