Filed 1065 as a partnership pending approval of 8832

[Kbaud2025]

Hello,

Long story short, my LLC was raised as a multi member LLC with the IRS at formation and unfortunately I didn't catch this until reviewing the EIN paperwork requiring a 1065 to be filed by March 15th. Considering there wasn't enough time to submit and obtain approval for form 8832 to correct my LLC as a single member llc I filed the 1065. I am still pending approval of my 8832 and have yet to file my personal taxes. My questions are as follow:

* how can I amend my 1065 to negate it as a multi member llc? Id like to have the llc (as a single member) flow through my personal taxes as a disregarded entity. 

* assuming I will not have the 8832 approval back before personal taxes are due on April 15th, can i reflect the LLC on my personal taxes as a disregarded entity? Or,

* do I have to file my personal taxes with the schedule k from the llc as filed and amend at a later date (after amending the llc from a multi to single member)? 

* in the event my 8832 is approved in time before April 15th deadline, can I potentially amend my business taxes, reflect this on my personal taxes (via an amended schedule k) AND take the disregarded benefit in one go without having to amend my personal taxes?

* is there anyway I can legally reflect the disregarded entity on my personal taxes without having to amend down the road?

[RobertB4444]

Go ahead and enter the LLC as a schedule C or E on your personal tax return and you will have already filed it as a disregarded entity.  Since that is the end result of the single member LLC that you are filing as that will solve all the issues and you won't need to amend the return later.

@Kbaud2025 

[Kbaud2025]

Thanks @RobertB4444 however I'm concerned this may cause an audit flag since the schedule k was generated from the 1065 that was filed ahead of the march 15th deadline. Don't I need to take an action to avoid the 1065 that was done? Also isn't this a concern considering the 8832 approval is still in process?

[RobertB4444]

You should be concerned!  I didn't realize that you had already filed the 1065.  I gave you terrible advice.

Since the 1065 is already filed I would leave it as is for 2024.  I'm not sure who you put as partners if you're a single member LLC?  But either way leave it alone for 2024 and add the K1 to your personal return to file for this year.

You've submitted the 8832 and that will be processed before next year.  You can enter the LLC as a disregarded entity for 2025.

@Kbaud2025 

[Kbaud2025]

Hi @RobertB4444 thanks for inserting some comedic relief there. The thing is my 8832 is to correct my llc to single member from multi from the date of inception (april 2024) as advised by someone else at turbo tax. However my personal taxes would benefit from recognizing the disregarded entity in 2024. How can this be done without breaking any tax laws? 

[RobertB4444 · Accepted solution]

If they recognize you as a single member LLC THEN you can amend the 1065 to all zeroes and amend your personal return to add the schedule C for the disregarded entity.  But with the 10965 already hanging out there I think you file it as is for now.

@Kbaud2025