I have two-member LLC founded on 10/1/19. I chose the accounting month to be Sept. (i thought it will be easier for me to remember...). But somehow I forgot all about this, and thought that we are using calendar year.
1) So, when it comes to 3/15/20, since we did not have any expense and income by 12/31/19, we did not file it based on following instruction:
"every domestic partnership must file Form 1065, unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes."
2) We had some business activities during 2020; unfortunately we had loss. On 3/15/21, I filed 1065 for 1/1/20-12/31/20.
I just realized today that we are using Sept as accounting month😫, so we suppose to file 1065 on 12/15/20.
My Questions:
1) am I right? is it ok not to file 1065 if we neither received income nor incurs any expenditures treated as deductions or credits for federal income tax purposes
2) do I need to file 1065-X to correct the fillling period from (1/1/20-12/31/20) to (10/1/19-9/30/19)? The loss will not change much because we did not have much business activities during pandemic.
3) we are late on filing 1065. Will IRS consider the late period be 3 months (from 12/15/20-3/15/20) or will IRS consider late period to be longer (say after I filed 1065X), or after I paid off the penalties.
3) is there a chance to get first-time penalty abatement from IRS in our case?
Thanks.
