Send final return last year but did not dissolve the LLC

[codercoder]

Hi guys

I have an LLC in New York State. I sent my final return last year (2018) by marking final in federal and state income forms.

However, I did not dissolve the LLC by sending in form to NY State,

1) Do I need to file a return this year (for 2019)?
2) I would like to keep the LLC. In that case, what should I do with IRS since I marked my return final last year.

[DavidS127 · Accepted solution]

Yes you need to file tax returns for 2019, because the business is continuing.

You can file amended returns for 2018, with the only change being that the "Final" box is not checked on the amended returns.  Include an explanation, e.g., that you decided to continue in business.

[codercoder]

Thanks @DavidS127 

Just to clarify, last year I filed a 1120s. I will file the same form and check H4 (Amended return).

Where do I include an explanation?

[DavidS127]

If your tax software doesn't automatically provide you with an "explanation" window for the amended return as a part of the interview, you can create one.  To do that in TurboTax Business "Forms mode" you can open an "Additional Information" form and type in the explanation.  That Additional Information form will then print with the rest of the tax return, and you can include it when you mail the tax return.

[MISTAMARX]

@DavidS127 what if you filed a Final Tax return in 2023 on an LLC in NY State for tax year 2022 and  DID NOT want to keep the LLC but due to misinformation, wasn't able to dissolve the LLC until 2024.  Do we still need to file a final tax return for tax year 2023?  No business had been conducted in all of 2023

[Opus 17]

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@MISTAMARX  wrote:

@DavidS127 what if you filed a Final Tax return in 2023 on an LLC in NY State for tax year 2022 and  DID NOT want to keep the LLC but due to misinformation, wasn't able to dissolve the LLC until 2024.  Do we still need to file a final tax return for tax year 2023?  No business had been conducted in all of 2023

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You may need to ask a New York tax professional.

The IRS does not recognize LLCs as a special type of business, since LLCs are created under state law.  Under federal law, you have a disregarded entity (like a sole proprietorship), or a partnership (unless you elected to be treated as an S-corporation).  If you closed the business, disposed of the assets, filed a final return, and have not continued business activities, then the IRS does not need to see a tax return, even if you did not terminate your registration with the state.  

I don't know what New York might require.  You will need to check with someone in New York, possible the attorney who helped with the LLC if you used one.