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Procedure to "Opt Out"

There have been questions from clubs on how they will opt out if their clubs are eligible to do so.

There will be a place on the form 1065 where you will indicate that you want to opt out.

There will also be a new form, form B-2 that you'll file with your club tax return. You can see a draft of the new form here:

Opt Out Form

The current plans are that this form will be generated as part of your complete club tax filing when you prepare taxes in bivio early next year.

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

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Laurie:

Please make any form dealing with "opt-out" at the time of filing the 1065 optional. There will be clubs, mine included, that choose to allow members to hold their interest in the partnership in a revocable living trust. If we are ever chosen for audit, a likely hood equal to winning the billion-dollar lottery this week, we plan to use the second opportunity to opt-out by filing an amended return after an assessment is issued.

Jack Ranby, Treasurer, Grants Partners Investment Club

From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Laurie Frederiksen
Sent: Monday, 22 October, 2018 13:22
To: The Club Cafe
Subject: [club_cafe] Procedure to "Opt Out"

There have been questions from clubs on how they will opt out if their clubs are eligible to do so.

There will be a place on the form 1065 where you will indicate that you want to opt out.

There will also be a new form,  form B-2 that you'll file with your club tax return.  You can see a draft of the new form here:

Opt Out Form

The current plans are that this form will be generated as part of your complete club tax filing when you prepare taxes in bivio early next year.

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

You will have the option to either "opt in" or "opt out".

We've recommended that clubs operate in such a way that they can "opt out" because of the complexities involved with addressing an IRS audit issue if it did arise and they had not done so.

It may sound simple to think you'd just have partners from the affected year file amended returns, but in reality it might not be an easy task.

For example, you'd need to be able to contact those partners and ensure that they addressed the issues raised by filing amended personal returns. You'd also need to ensure they paid any penalties and interest that was due. This might not be a simple matter.

Of course, clubs that follow our record keeping and tax preparation recommendations should not find themselves with IRS audit problems. If you are comfortable that applies to your club, it shouldn't matter whether you opt in or opt out.

Just make sure you are clear on what each of those choices might mean for your particular club before you decide.

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 Mon, Oct 22, 2018 at 8:27 PM Jack Ranby via bivio.com <user*15792700001@bivio.com> wrote:

Laurie:

Please make any form dealing with "opt-out" at the time of filing the 1065 optional. There will be clubs, mine included, that choose to allow members to hold their interest in the partnership in a revocable living trust. If we are ever chosen for audit, a likely hood equal to winning the billion-dollar lottery this week, we plan to use the second opportunity to opt-out by filing an amended return after an assessment is issued.

Jack Ranby, Treasurer, Grants Partners Investment Club

From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Laurie Frederiksen
Sent: Monday, 22 October, 2018 13:22
To: The Club Cafe
Subject: [club_cafe] Procedure to "Opt Out"

There have been questions from clubs on how they will opt out if their clubs are eligible to do so.

There will be a place on the form 1065 where you will indicate that you want to opt out.

There will also be a new form, form B-2 that you'll file with your club tax return. You can see a draft of the new form here:

Opt Out Form

The current plans are that this form will be generated as part of your complete club tax filing when you prepare taxes in bivio early next year.

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

Laurie,

Thank you so much for all the information on the new IRS requirements.  After reading through this massive amount of information, I either missed or didn't see any information on when and how the person will be named that will be the IRS contact!  Can you advise me on this issue.

Thank you 
Sandy Kimble
Entrenous Investment Club


On Oct 23, 2018, at 8:49 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:

You will have the option to either "opt in" or "opt out".

We've recommended that clubs operate in such a way that they can "opt out" because of the complexities involved with addressing an IRS audit issue if it did arise and they had not done so.

It may sound simple to think you'd just have partners from the affected year file amended returns,  but in reality it might not be an easy task.

For example,  you'd need to be able to contact those partners and ensure that they addressed the issues raised by filing amended personal returns.  You'd also need to ensure they paid any penalties and interest that was due.  This might not be a simple matter.

Of course,  clubs that follow our record keeping and tax preparation recommendations should not find themselves with IRS audit problems.  If you are comfortable that applies to your club,  it shouldn't matter whether you opt in or opt out.

Just make sure you are clear on what each of those choices might mean for your particular club before you decide.

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 Mon, Oct 22, 2018 at 8:27 PM Jack Ranby via bivio.com <user*15792700001@bivio.com> wrote:

Laurie:

 

Please make any form dealing with "opt-out" at the time of filing the 1065 optional. There will be clubs, mine included, that choose to allow members to hold their interest in the partnership in a revocable living trust. If we are ever chosen for audit, a likely hood equal to winning the billion-dollar lottery this week, we plan to use the second opportunity to opt-out by filing an amended return after an assessment is issued.

 

Jack Ranby, Treasurer, Grants Partners Investment Club

 

 

From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Laurie Frederiksen
Sent: Monday, 22 October, 2018 13:22
To: The Club Cafe
Subject: [club_cafe] Procedure to "Opt Out"

 

There have been questions from clubs on how they will opt out if their clubs are eligible to do so.

There will be a place on the form 1065 where you will indicate that you want to opt out.

There will also be a new form,  form B-2 that you'll file with your club tax return.  You can see a draft of the new form here:

Opt Out Form

The current plans are that this form will be generated as part of your complete club tax filing when you prepare taxes in bivio early next year.

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

 


Hi,

If you do not opt out and you need to designate a partnership representative, it will be done when you prepare your tax forms for the year.

There will be a question during the bivio tax prep process you'll answer that will then place the information on the appropriate IRS form in your tax filing.

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, Oct 24, 2018 at 2:13 PM Sandy Kimble via bivio.com <user*27818700001@bivio.com> wrote:
Laurie,

Thank you so much for all the information on the new IRS requirements. After reading through this massive amount of information, I either missed or didn't see any information on when and how the person will be named that will be the IRS contact! Can you advise me on this issue.

Thank you
Sandy Kimble
Entrenous Investment Club


On Oct 23, 2018, at 8:49 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:

You will have the option to either "opt in" or "opt out".

We've recommended that clubs operate in such a way that they can "opt out" because of the complexities involved with addressing an IRS audit issue if it did arise and they had not done so.

It may sound simple to think you'd just have partners from the affected year file amended returns, but in reality it might not be an easy task.

For example, you'd need to be able to contact those partners and ensure that they addressed the issues raised by filing amended personal returns. You'd also need to ensure they paid any penalties and interest that was due. This might not be a simple matter.

Of course, clubs that follow our record keeping and tax preparation recommendations should not find themselves with IRS audit problems. If you are comfortable that applies to your club, it shouldn't matter whether you opt in or opt out.

Just make sure you are clear on what each of those choices might mean for your particular club before you decide.

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 Mon, Oct 22, 2018 at 8:27 PM Jack Ranby via bivio.com <user*15792700001@bivio.com> wrote:

Laurie:

Please make any form dealing with "opt-out" at the time of filing the 1065 optional. There will be clubs, mine included, that choose to allow members to hold their interest in the partnership in a revocable living trust. If we are ever chosen for audit, a likely hood equal to winning the billion-dollar lottery this week, we plan to use the second opportunity to opt-out by filing an amended return after an assessment is issued.

Jack Ranby, Treasurer, Grants Partners Investment Club

From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Laurie Frederiksen
Sent: Monday, 22 October, 2018 13:22
To: The Club Cafe
Subject: [club_cafe] Procedure to "Opt Out"

There have been questions from clubs on how they will opt out if their clubs are eligible to do so.

There will be a place on the form 1065 where you will indicate that you want to opt out.

There will also be a new form, form B-2 that you'll file with your club tax return. You can see a draft of the new form here:

Opt Out Form

The current plans are that this form will be generated as part of your complete club tax filing when you prepare taxes in bivio early next year.

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


Laurie, would you please re-send your message about which particular sections of the model Bylaws we need to review and perhaps modify the wording in our own bylaws. Thank you.

On Thu, Oct 25, 2018 at 10:08 AM Laurie Frederiksen <laurie@bivio.biz> wrote:

Hi,

If you do not opt out and you need to designate a partnership representative, it will be done when you prepare your tax forms for the year.

There will be a question during the bivio tax prep process you'll answer that will then place the information on the appropriate IRS form in your tax filing.

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, Oct 24, 2018 at 2:13 PM Sandy Kimble via bivio.com <user*27818700001@bivio.com> wrote:
Laurie,

Thank you so much for all the information on the new IRS requirements. After reading through this massive amount of information, I either missed or didn't see any information on when and how the person will be named that will be the IRS contact! Can you advise me on this issue.

Thank you
Sandy Kimble
Entrenous Investment Club


On Oct 23, 2018, at 8:49 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:

You will have the option to either "opt in" or "opt out".

We've recommended that clubs operate in such a way that they can "opt out" because of the complexities involved with addressing an IRS audit issue if it did arise and they had not done so.

It may sound simple to think you'd just have partners from the affected year file amended returns, but in reality it might not be an easy task.

For example, you'd need to be able to contact those partners and ensure that they addressed the issues raised by filing amended personal returns. You'd also need to ensure they paid any penalties and interest that was due. This might not be a simple matter.

Of course, clubs that follow our record keeping and tax preparation recommendations should not find themselves with IRS audit problems. If you are comfortable that applies to your club, it shouldn't matter whether you opt in or opt out.

Just make sure you are clear on what each of those choices might mean for your particular club before you decide.

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 Mon, Oct 22, 2018 at 8:27 PM Jack Ranby via bivio.com <user*15792700001@bivio.com> wrote:

Laurie:

Please make any form dealing with "opt-out" at the time of filing the 1065 optional. There will be clubs, mine included, that choose to allow members to hold their interest in the partnership in a revocable living trust. If we are ever chosen for audit, a likely hood equal to winning the billion-dollar lottery this week, we plan to use the second opportunity to opt-out by filing an amended return after an assessment is issued.

Jack Ranby, Treasurer, Grants Partners Investment Club

From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Laurie Frederiksen
Sent: Monday, 22 October, 2018 13:22
To: The Club Cafe
Subject: [club_cafe] Procedure to "Opt Out"

There have been questions from clubs on how they will opt out if their clubs are eligible to do so.

There will be a place on the form 1065 where you will indicate that you want to opt out.

There will also be a new form, form B-2 that you'll file with your club tax return. You can see a draft of the new form here:

Opt Out Form

The current plans are that this form will be generated as part of your complete club tax filing when you prepare taxes in bivio early next year.

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


If you go to our homepage, www.bivio.com , you can always find the most recent Club Cafe discussions listed and a link to past ones.

Here is a direct link to the one you asked about:

https://www.bivio.com/club_cafe/mail-thread?p=261340100003

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 Thu, Oct 25, 2018 at 11:19 AM Jeanne Tieken via bivio.com <user*15788300001@bivio.com> wrote:
Laurie, would you please re-send your message about which particular sections of the model Bylaws we need to review and perhaps modify the wording in our own bylaws. Thank you.

On Thu, Oct 25, 2018 at 10:08 AM Laurie Frederiksen <laurie@bivio.biz> wrote:

Hi,

If you do not opt out and you need to designate a partnership representative, it will be done when you prepare your tax forms for the year.

There will be a question during the bivio tax prep process you'll answer that will then place the information on the appropriate IRS form in your tax filing.

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, Oct 24, 2018 at 2:13 PM Sandy Kimble via bivio.com <user*27818700001@bivio.com> wrote:
Laurie,

Thank you so much for all the information on the new IRS requirements. After reading through this massive amount of information, I either missed or didn't see any information on when and how the person will be named that will be the IRS contact! Can you advise me on this issue.

Thank you
Sandy Kimble
Entrenous Investment Club


On Oct 23, 2018, at 8:49 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:

You will have the option to either "opt in" or "opt out".

We've recommended that clubs operate in such a way that they can "opt out" because of the complexities involved with addressing an IRS audit issue if it did arise and they had not done so.

It may sound simple to think you'd just have partners from the affected year file amended returns, but in reality it might not be an easy task.

For example, you'd need to be able to contact those partners and ensure that they addressed the issues raised by filing amended personal returns. You'd also need to ensure they paid any penalties and interest that was due. This might not be a simple matter.

Of course, clubs that follow our record keeping and tax preparation recommendations should not find themselves with IRS audit problems. If you are comfortable that applies to your club, it shouldn't matter whether you opt in or opt out.

Just make sure you are clear on what each of those choices might mean for your particular club before you decide.

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 Mon, Oct 22, 2018 at 8:27 PM Jack Ranby via bivio.com <user*15792700001@bivio.com> wrote:

Laurie:

Please make any form dealing with "opt-out" at the time of filing the 1065 optional. There will be clubs, mine included, that choose to allow members to hold their interest in the partnership in a revocable living trust. If we are ever chosen for audit, a likely hood equal to winning the billion-dollar lottery this week, we plan to use the second opportunity to opt-out by filing an amended return after an assessment is issued.

Jack Ranby, Treasurer, Grants Partners Investment Club

From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Laurie Frederiksen
Sent: Monday, 22 October, 2018 13:22
To: The Club Cafe
Subject: [club_cafe] Procedure to "Opt Out"

There have been questions from clubs on how they will opt out if their clubs are eligible to do so.

There will be a place on the form 1065 where you will indicate that you want to opt out.

There will also be a new form, form B-2 that you'll file with your club tax return. You can see a draft of the new form here:

Opt Out Form

The current plans are that this form will be generated as part of your complete club tax filing when you prepare taxes in bivio early next year.

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