more-arw search

Q&A Forum

If an LLC does not file its K-1 information return, can the IRS penalty flow up to the Members?

In every LLC partnership document I have reviewed, the maximum loss to a Member is their capital contribution. But if the IRS assesses a non-filing penalty to a defunct LLC, are the members liable?

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

The answer is yes, IMHO, if the LLC had income. As an individual you should have recorded a fair estimate of that income along with an explanation.

On the other hand as a general member of the LLC, you should have access to the numbers and can always file the return itself.

Of there is no income/ loss, the IRS doesn't really care if you overpaid - but be mindful of statute of limitations for filing ended returns.

POI: I am not a tax expert by anyone's stretch of the imagination.

1073 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.