Max W Posted March 9, 2020 Report Share Posted March 9, 2020 Client wants to file partnership with his girlfriend for 2019. If he gets EIN now and files extension, will this fly? They are both currently Sch C, but she essentially works for him. She uses one of his trucks and works about 2 days a week. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 10, 2020 Report Share Posted March 10, 2020 Based on my past experience, if the EIN was not issued by 12/31/19, an attempt to efile the return will be rejected. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 10, 2020 Report Share Posted March 10, 2020 If you file a partnership return, in 2 years you will have wedding or a liquidation of a partnership. Both events are not partnership friendly so why don't you just give her a 1099-misc? 1 Quote Link to comment Share on other sites More sharing options...
Max W Posted March 10, 2020 Author Report Share Posted March 10, 2020 10 minutes ago, Pacun said: If you file a partnership return, in 2 years you will have wedding or a liquidation of a partnership. Both events are not partnership friendly so why don't you just give her a 1099-misc? No wedding! Neither wants it. A 1099-Misc doesn't work because she is really an employee using his equipment and getting reimbursed for expenses. P/Ship solves all of this. Quote Link to comment Share on other sites More sharing options...
Max W Posted March 10, 2020 Author Report Share Posted March 10, 2020 55 minutes ago, cbslee said: Based on my past experience, if the EIN was not issued by 12/31/19, an attempt to efile the return will be rejected. What about paper file. It would also be on extension. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 10, 2020 Report Share Posted March 10, 2020 Why doesn't he hire her in his business? Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 10, 2020 Report Share Posted March 10, 2020 3 hours ago, Max W said: No wedding! Neither wants it. A 1099-Misc doesn't work because she is really an employee using his equipment and getting reimbursed for expenses. P/Ship solves all of this. At least right now. Too volatile for a partnership. In my observed opinion. Quote Link to comment Share on other sites More sharing options...
Max W Posted March 10, 2020 Author Report Share Posted March 10, 2020 9 minutes ago, Jack from Ohio said: At least right now. Too volatile for a partnership. In my observed opinion. These are two people in their early 50's, both divorced, not interested in marriage. But, anyhow it doesn't answer my question. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 10, 2020 Report Share Posted March 10, 2020 Did they act like a partnership in 2019? Guaranteed payments? Business bank account/credit card? What name was on the checks they received from clients; do they have a partnership name/dba? Did they register with the state as a partnership or MMLLC? 3 Quote Link to comment Share on other sites More sharing options...
Max W Posted March 12, 2020 Author Report Share Posted March 12, 2020 Thanks everyone for your input. I think it pretty much shoots down the partnership idea for 2019. Quote Link to comment Share on other sites More sharing options...
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