- Apr 21, 2019
- Reaction score
I have a potential new client who started an LLC in 2019. He is a SMLLC but was incorrectly classified as a 1065 partnership by the IRS with his EIN letter. He can go through the process of reclassifying to a sole prop, but in the meantime what should he do? He can't wait to do his taxes since they will be due before this is sorted out. He does have an extension on the 1065 now, but he still has to file his 1040 in April. I'm thinking he should file a 1065 for 2019 with BOTH the initial return and the final return boxes checked, then start as a sole prop for 2020. Does anyone agree or have a correction to this thinking? Thank you!