Club Partnership Status

Dennis M. McCarthy on

Our Club has been around since 1987. Based on some IRS info from 1997, we have always considered ourselves to be grandfathered as an "Investment Partnership" which did not have to submit 1065's or K-1's either for the club or members. Now that we are in the process of converting our accounting system to Bivio and have access to these forms, we are wondering if this grandfathering is still in effect. Even if it is, are there advantages to using these forms? And would we have to notify the IRS that we are changing? Thanks for any help you can give us.

Laurie Frederiksen on

Dear Dennis,

This is a misconception that has been around for a long time. We believe you should be filing partnership returns.

Here is a further explanation of the situation by Rip West who was very involved in getting NAIC to change their recommendation:

https://www.bivio.com/trez_talk/mail-thread?p=69422100003

Laurie Frederiksen
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On Wed, Jan 29, 2014 at 6:18 PM, Dennis M. McCarthy wrote:

Our Club has been around since 1987. Based on some IRS info from 1997, we have always considered ourselves to be grandfathered as an "Investment Partnership" which did not have to submit 1065's or K-1's either for the club or members. Now that we are in the process of converting our accounting system to Bivio and have access to these forms, we are wondering if this grandfathering is still in effect. Even if it is, are there advantages to using these forms? And would we have to notify the IRS that we are changing? Thanks for any help you can give us.

dennymccarthy on

Thanks so much Laurie for the quick response.

Denny McCarthy

From: "Laurie Frederiksen" <laurie@bivio.biz>
To: "The Club Cafe" <club_cafe@bivio.com>
Sent: Wednesday, January 29, 2014 6:29:53 PM
Subject: Re: [club_cafe] Club Partnership Status

Dear Dennis,

This is a misconception that has been around for a long time. We believe you should be filing partnership returns.

Here is a further explanation of the situation by Rip West who was very involved in getting NAIC to change their recommendation:

https://www.bivio.com/trez_talk/mail-thread?p=69422100003

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
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe

On Wed, Jan 29, 2014 at 6:18 PM, Dennis M. McCarthy wrote:

Our Club has been around since 1987. Based on some IRS info from 1997, we have always considered ourselves to be grandfathered as an "Investment Partnership" which did not have to submit 1065's or K-1's either for the club or members. Now that we are in the process of converting our accounting system to Bivio and have access to these forms, we are wondering if this grandfathering is still in effect. Even if it is, are there advantages to using these forms? And would we have to notify the IRS that we are changing? Thanks for any help you can give us.

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