@martinlc I don't agree with amending the 2019 LLC tax return to accomplish this.
Too much time has elapsed and I think it is unwise to amend the 2019 partnership return which in effect is telling the IRS "Oh we forgot that we distributed out all the assets".
My recommendation is to file the 2020 Form 1065 as a final tax return which will reflect the liquidating distributions. I would also include a statement that the LLC taxed as a partnership is being liquidated and going forward you will be filing as a qualified joint venture in accordance with Revenue Procedure 2002-69.
Make sure you mark all appropriate boxes that this is the final form 1065 and the K-1's are marked final as well.
Going forward, for your tax year 2021, you will just split the activity with each of you completing a Schedule C.
Keep in mind that you can no longer use the EIN that was assigned to the LLC. Filing a Schedule C does not require you to get an EIN unless you have employees. Just use your SS#. Make sure any vendors, banks, etc. no longer send you documentation that references the LLC EIN.
*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.
