gfizer Posted April 15, 2015 Report Share Posted April 15, 2015 I have a partnership return for a law firm. One of the partners left the firm at the end of October, 2014. They changed the name of the firm when the partner left in October and did all the necessary filings with the Kentucky Secretary of State's Office to reflect the partnership name but they are still operating under the same Federal EIN they have always used. They don't quite have their info together and have asked me to file an extension for the partnership and the remaining individual partners. They want to file a short period return for January thru October under the old firm name and a short period return for November and December under the new name. This is mainly so that the previous partner will not have any access to any information regarding the earnings/affairs of the firm after she left in October. Do I need to file 2 extensions - one for each period and can I even do that using the same EIN? Or do I just file one extension for their EIN and then do the two short period returns when the time comes? Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 15, 2015 Report Share Posted April 15, 2015 Is this a pass through entity? Quote Link to comment Share on other sites More sharing options...
gfizer Posted April 15, 2015 Author Report Share Posted April 15, 2015 Yes. It is a professional limited liability company filing as a general partnership. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 15, 2015 Report Share Posted April 15, 2015 Just because a client wants to do something doesn't make it correct. Unless the partnership had a change in ownership of more than 50% and therefore had a technical termination, then you and your client would be in error by filing 2 tax returns years, and even if they could or did this, the one for the period ending in Oct would already be late, so an extension is totally inappropriate for that situation. You need to file one extension for the entire year using the EIN and the new name. When the return is filed, you will check the box for name change on page 1 of the form 1065. The partnership can make its allocations to all of the partners for that short period based on the actual results of operations through the date in October and give only those details of that income/expense split to the partner that left. The remaining partners will also get a portion of that plus a split of the activity for the remainder of the year. 5 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted April 15, 2015 Report Share Posted April 15, 2015 Judy has it right Quote Link to comment Share on other sites More sharing options...
gfizer Posted April 15, 2015 Author Report Share Posted April 15, 2015 Thanks, Judy. That has been my feeling about it all along and I told them I thought that was the way it had to be done. They probably won't like it but at this point I don't much care. 4 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 16, 2015 Report Share Posted April 16, 2015 As Judy said "The partnership can make its allocations to all of the partners for that short period based on the actual results of operations through the date in October and give only those details of that income/expense split to the partner that left." Her K-1 will only show her share. Quote Link to comment Share on other sites More sharing options...
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