Tax information
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Tax information What is form 8893 and is the club supposed to file this with the IRS? What is a Consolated Audit? The box for this is checked in the questions about the club. Is this the default question for this question? Royal Schnell at e-mail royal5@frontiernet.net It is generally recommended that clubs DO NOT file Form 8893 as it does not provide any benefit to the club
In a message dated 02/05/11 10:39:06 Eastern Standard Time, royals@bivio.com writes:
Hit wrong key...
It is generally recommended that clubs DO NOT file Form 8893 as it does not provide any benefit to the club but does provide some benefit to the IRS.
The box for this question was not checked by default for my club. I suspect, but bivio support will have to confirm, that the status of this box defaults to your answer to this question from your 2009 tax return.
In a consolidated audit, if the IRS were to audit the club's return, any changes it made would automatically apply to each partner. Small partnerships (fewer than 10 partners) are not subject to consolidated audits unless they elect to be subject to them by filing Form 8893. If a small partnership does not elect consolidated audit status, the IRS has to audit each partner individually to enforce any change made at the partnership level.
Ira Smilovitz Join me at InvestEd 2011 In a message dated 02/05/11 10:39:06 Eastern Standard Time, royals@bivio.com writes:
Ira, Does this mean that clubs with over 10 members must file form 8893? iras1 wrote: > Hit wrong key... > > It is generally recommended that clubs DO NOT file Form 8893 as it does not provide any benefit to the club but does provide some benefit to the IRS. > > The box for this question was not checked by default for my club. I suspect, but bivio support will have to confirm, that the status of this box defaults to your answer to this question from your 2009 tax return. > > In a consolidated audit, if the IRS were to audit the club's return, any changes it made would automatically apply to each partner. Small partnerships (fewer than 10 partners) are not subject to consolidated audits unless they elect to be subject to them by filing Form 8893. If a small partnership does not elect consolidated audit status, the IRS has to audit each partner individually to enforce any change made at the partnership level. > > > Ira Smilovitz > > > > Join me at InvestEd 2011 > Investor Education at Its BestTM > San Diego, CA May 13-15, 2011 > http://www.investor-education2011.org/ > > > In a message dated 02/05/11 10:39:06 Eastern Standard Time, royals@bivio.com writes: > > What is form 8893 and is the club supposed to file this with > the IRS? > What is a Consolated Audit? The box for this is checked in > the questions about the club. Is this the default question > for this question? > Royal Schnell at e-mail royal5@frontiernet.net > > Dear Linda, No. The form is only for clubs with less than 10 members. Clubs with 10 or more will automatically be subject to a consolidated audit. -- Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio |
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