Corduroy Frog

If you filed a joint return for 2018, you are on the hook to provide to either spouse. You can charge for preparing a copy, which will probably enrage this guy. But you can do it. You have absolutely no obligation to discuss 2019 with him. A state court order to file jointly means nothing to the IRS. If Wisconsin decrees this as a domestic solution, make them go through the misery of going through the legal channels to do so. Even if this happens, you have no obligation to discuss anything with him. If these two finally divorce, you absolutely cannot file jointly. That is Federal and Wisconsin can't do anything about it. If a Wisconsin return has to be filed, I can't speak to that.

I've looked at a 1065 with an associate of mine who is concerned things aren't being handled right. This one is probably for Judy because of her geographical area. The "tax matters person" is a Nebraska corporation. There are two other corporations which form the LLC (filing as a partnership). One of the corporations is in Maryland, and the other is in Tennessee. The three corporations bill the LLC, who in turn bills the customer, and after paying the three corporations, there is profit, all of which is taxable. The LLC is chartered in Delaware, as an attorney advised them their liability would be lower. I've seen this before, but I'm not aware of any peculiar tax advantage (or disadvantage) for a charter in Delaware. The partners operate in Texas and have fixed assets in Texas as well. The LLC itself does not operate either in Delaware or Texas. There are two tax forms filed - a Federal Form 1065 and a Nebraska partnership return. All of the state allocations are 100% for Nebraska. My question: Does Delaware require a tax return to be filed? Charter is there, but zero operation. How about Texas? LLC does not operate in Texas but they have equipment there. Each of the three partners operate in Texas but not the LLC. I'm leaving out Maryland and Tennessee - although the respective partners there should file with those states. The LLC does not physically operate in either Maryland or Tennessee, but make substantial payments to the members. I don't believe the LLC has a filing responsibility to either of these. Long story short, does the LLC have responsibility to file in either Delaware or Texas? Thank you in advance for wading through this post -

I realize I am showing my ign'erts, but what on earth is this? Sounds like a gestapo. Actually I've run into this as a Sch B-1 to Form 1065. Allows partners to "bail out" of the Centralized Audit Regime, whatever that is. What would be the difference if they didn't bail out?? I have done some reading, but it's like trying to hypnotize a fence post...Ever whut it is, it's new.

Thanks Judy. This is relevant enough to answer the question. IRS, in their characteristic ambiguity, has obviously not covered all the bases, but I believe there is enough to explain why some taxpayers are having their estimated penalties refunded.

Replying to my own message to bump it up. I would have thought others have experienced refunds of underpayment penalties...

Drake will calculate a penalty for underpayment of estimated taxes, and add it to the amount due (or reduce refund). I can override the calculation, but usually let it stand unless there is a compelling reason to remove it. Helps cut down on ugly collection letters in the summer. This year, three of my customers have had this penalty refunded to them. And maybe more that haven't told me. Has something happened with the IRS that I am not aware of? Is this a COVID gift to taxpayers? Have the regulations given relief? Thanking you in advance for comments - "Corduroy Frog".

John, I'm treating the proceeds as cost reimbursements rather than revenue. I believe the current application is that you cannot deduct an expense that has been paid from tax-exempt funds, so waiting until 2021 accomplishes nothing. You're right about moving the goal posts. Those who are driving the train don't know what they're dragging around.

My first post on my new computer with a new I.P. address. This is Edsel from previous posts - not sure how to register with the same name. The forum for the CoronaVirus topics has slowed down. I would like to ask a question where others can respond. Monitors can move the thread if they so desire. Subject: I'm being tormented to death by a few Sch C customers who want me to apply for loan forgiveness. In a couple cases, I didn't even assist with the application - it was done entirely by their bank. And now the bank doesn't want to file for forgiveness. I was told (and it was all over the news media a couple months ago) that a single Sch C filer with loans under $150,000 would be automatically forgiven without having to apply. Can anyone point to a citation that would confirm this? I've got a couple that I will have to do, but I don't want to fool with those for which I had nothing to do with... Thanks in advance - Ron Jordan