a 1065 should be filed making a 195 election for startup costs so they can be deducted to the extent allowed by law on the 2019 or 2020 return. you say no business was done but that's not the test.
this is from an actual court case
IRS pointed out that in 2010 she did not formally advertise the business to the general public and she did not do anything to try to find paying clients. IRS said she did not establish the business was actually functioning in 2010 and her activities were not enough to prove she was “in business”.
The Tax Court upheld the IRS finding she was not in business in 2010 and the business loss she claimed was not allowed.
here's another opinion
Your business officially starts when the business begins operations. For a service or consulting company, that means providing services ( I don't agree - I think advertising - such as mailings, flyers, newspaper ads would be sufficient). For a retail store, that means when the doors open (Again I disagree if there are actions or activities where they're trying to drum up business). You do not have to generate income or sales on the first day of operations, but you must be operating the business so that you can generate income. It is important you determine when the business starts because you treat all costs you incur prior to that time as start-up costs. Once you begin normal operations, you can deduct normal operating expenses as they occur.
in fact the IRS does not have formal rules as to when a business begins.
if you "started" the business in2019, then 195 will allow deduction of some or all of the start-up expenses, whereas if the business didn't start until 2020, they would be deductible in that year
it's crucial that the tax return is filed. failure can result in penalties pf about $400/mo for a maximum of 12 months.
since this is the first year and there seems to be a lack of tax knowledge, I strongly recommend you use a tax pro for the first year. they can point out various options that are available and will get you off to a proper start. mess up the first year and every year after that will be a mess.
