Category talk:Partnership

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i HAVE A NEW CLIENT THAT CAME TO ME. SHE AND A FRIEND FORMED AN LLC IN 2004. THEY FILED ALL THESE YEARS ON A 1065. SHE WAS NOT AWARE OF BEING ABLE TO ELECT TO BECOME AN S-CORP. TOO LATE AS I UNDERSTAND IT?? ALSO THE FRIEND IS NOT INVOLVED IN THE BUSINESS ONLY HER HE ONLY BECAME A PARTNER BECAUSE HE PUT UP MOST OF THE MONEY TO GET GOING. THE PARTNERSHIP PAYS HIM EACH MONTH AN AMOUNT EQUAL TO THE INTEREST ONLY LOAN PAYMENT HE OBTAINED TO PUT MONEY IN THE PARTNERSHIP. THE PRIOR BOOKKEEPER AND ACCOUNTANT DOING THE TAX RETURNS HAD HER PAY HERSELF WAGES ON A W-2 WHICH IS INCORRECT FOR PARTNERSHIP. DAH.. ALSO THE AMOUNTS THE PARTNERSHIP IS GIVING HIM EACH MONTH ARE BEING SHOWN A GUARRENTEED PAYMENTS TO A PARTNER AND HE IS PAYING S/E TAX ON HIS PERSONAL RETURN. BUT.. THE ACCOUNTANT ALSO HAD HER 1099INT HIM FOR THE PAYMENTS HE WAS PAID EACH MONTH SO THAT HE COULD MAKE HIS PAYMENT ON THE LOAN TO THE BANK. NOW HAS HAD TO SHOW TAXALBE INCOME FROM THE K-1 AND TAXABLE INCOME FROM THE 1099INT. WHAT A MESS ANY SUGJESTIONS OUT THERE. IS IT TOO LATE FORM PRIOR YEARS AND WHAT ABOUT 2007.

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