From Laurie last June:

Bob


Hi,

Clubs disbanding in 2018 will need to comply with the new 2018 audit rules for their reporting. Tax wise, it's a more complicated year to disband.

The IRS has explained how to do that in the current version of their instructions that you can find here:

https://www.irs.gov/pub/irs-pdf/i1065.pdf

It includes a discussion of who can opt out and what you need to do to do so on your tax form.

What gets more complicated is that there are other changes probably coming to reporting for 2018 because of the massive tax law changes at the end of 2017. The IRS has not released any guidance on what those might be yet. You may need to comply with those also. We don't know that yet.

When you disband, you have not only income, but also final withdrawal information to report on your final taxes or K-1's.

So far, we are recommending you work with an accountant for partial year 2018 returns due to the uncertainty of what you need to file and the extra complexity of filling in final tax returns correctly.

It's up to you. The IRS does not issue an income threshold below which you don't have to worry about an audit. Nor can we provide a judgement on that. That would also be something included in the services you'd get from an accountant.

Laurie Frederiksen
Invest with your friends!
www.bivio.com


> On Oct 8, 2018, at 8:39 PM, VIA via bivio.com <user*27500300001@bivio.com> wrote:
>
> Some questions:
>
> 1. How does a club notify the IRS of the date of disbanding?
>
> 2. Can you use IRS form 7004 to request a 6 month automatic extension for filing the clubs 1065 form? (our Treasurer is taking an extended vacation)
>
> 3. I think the K1 forms are derived from the 1065. I assume that means that when the 1065 is eventually produced and K1 forms distributed to partners, the partners will have to produce amended returns?
>

Thanks, Laurie,

Our investment club is not planning to disband.

Bob

-----Original Message-----
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Robert Shaw via
bivio.com
Sent: Monday, October 8, 2018 8:58 PM
To: club_cafe@bivio.com
Subject: Re: [club_cafe] Club Disbanding

From Laurie last June:

Bob


Hi,

Clubs disbanding in 2018 will need to comply with the new 2018 audit rules
for their reporting. Tax wise, it's a more complicated year to disband.

The IRS has explained how to do that in the current version of their
instructions that you can find here:

https://www.irs.gov/pub/irs-pdf/i1065.pdf

It includes a discussion of who can opt out and what you need to do to do so
on your tax form.

What gets more complicated is that there are other changes probably coming
to reporting for 2018 because of the massive tax law changes at the end of
2017. The IRS has not released any guidance on what those might be yet.
You may need to comply with those also. We don't know that yet.

When you disband, you have not only income, but also final withdrawal
information to report on your final taxes or K-1's.

So far, we are recommending you work with an accountant for partial year
2018 returns due to the uncertainty of what you need to file and the extra
complexity of filling in final tax returns correctly.

It's up to you. The IRS does not issue an income threshold below which you
don't have to worry about an audit. Nor can we provide a judgement on that.
That would also be something included in the services you'd get from an
accountant.

Laurie Frederiksen
Invest with your friends!
www.bivio.com


> On Oct 8, 2018, at 8:39 PM, VIA via bivio.com <user*27500300001@bivio.com>
wrote:
>
> Some questions:
>
> 1. How does a club notify the IRS of the date of disbanding?
>
> 2. Can you use IRS form 7004 to request a 6 month automatic extension for
filing the clubs 1065 form? (our Treasurer is taking an extended vacation)
>
> 3. I think the K1 forms are derived from the 1065. I assume that means
that when the 1065 is eventually produced and K1 forms distributed to
partners, the partners will have to produce amended returns?
>