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New Member
posted Oct 7, 2022 1:05:45 PM

Can anyone help me?? New small business LLC. I used fiscal year end 7-1-20 to 1/31/21 & 2-1-21 to 1/31/22 for this tax year. The IRS sent a letter saying it's wrong.

What did I do wrong?
How do I fix this? Help please

0 3 489
3 Replies
Level 15
Oct 7, 2022 1:45:55 PM

Is your LLC a single-member LLC without an election to be treated as a corporation for federal income tax purposes?

 

If so, it is a disregarded entity and you should likely have been reporting on Schedule C (Form 1040) on a calendar year basis.

 

Please provide more details, including how you reported and why you chose a fiscal year (and one that was a short year ending after December 31st).

Level 15
Oct 7, 2022 1:50:56 PM

If you’re a C corporation, the IRS lets you choose between the standard calendar year or your own fiscal year schedule.

If you’re a partnership or an S corporation, you need to get permission from the IRS before adopting a fiscal year.

you needed to file form 8716

https://www.irs.gov/pub/irs-pdf/f8716.pdf 

a single member LLC is a disregarded entity so would be treated as a sole proprietorship that must use a calendar year.

 

New Member
Oct 12, 2022 6:24:48 PM

thank you