topic Dissolving a LLC without income - IRS? in Business & farm

Dissolving a LLC without income - IRS?

TheRavox — Thu, 06 Feb 2025 04:24:51 GMT

Im dissolving a partnership LLC in Florida that was active in 2024 but had no activity/no income, is required to file a final tax from 2024/2025 anyway or just a letter requesting the cancellation of the EIN is enough and on the letter inform that since the end of 2023 the LLC had no activity?

Re: Dissolving a LLC without income - IRS?

Mike9241 — Thu, 06 Feb 2025 07:27:13 GMT

from 1065 instructions

Domestic Partnerships
Except as provided below, 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.

an LLC has the same filing requirements.

thus technically no return is required. When working for a CPA firm we always filed a "Final Return" even if not required.

to save money, you can download the 065 from the iRS website and complete it manually. enter "0" for total revenue and total expenses e

there should be no assets, liabilities or equity in schedule L at the end of the year.

https://www.irs.gov/pub/irs-pdf/f1065.pdf

Re: Dissolving a LLC without income - IRS?

TheRavox — Thu, 06 Feb 2025 23:15:56 GMT

So instead of filling a final tax with 0 income and expenses sending a letter informing no activity and closing the EIN has the same effect correct?

Re: Dissolving a LLC without income - IRS?

Rick19744 — Fri, 21 Feb 2025 19:53:44 GMT

I would recommend filing a form 1065 with zero and line G box 2 marked with an "x".

This will be easier for the IRS to understand as I am fairly certain this is how it is handled in 99% of the time.

Very easy and simple.

Also send it certified mail return receipt if you are not electronically filing the return.

Re: Dissolving a LLC without income - IRS?

Mike9241 — Fri, 21 Feb 2025 20:22:30 GMT

not necessarily. a letter is not an official form so technically you have not filed a final return. Since it is not a return and not attached to a completed one, you would have to hope that the letter actually gets processed. There are no guarantees of that. From experience, many years ago, I sent In a letter with a mailed return. it never got processed and about 6 months later I got a notice from the IRS.