LLC CPAs amend Form 1065 for a wide range of reasons. When Form 1065 must be amended, your LLC CPA should nail down the return and document it well. The IRS probably scrutinizes amended returns closely.
How to Amend a Form 1065 depends on whether the LLC is subject to Consolidated Audit Procedures
Not Subject to Consolidated Audit Procedures
The LLC CPA prepares a correct Form 1065, and checks box G5 to indicate this is an amended return. Even forms and schedules that remain correct need to be included. We include an Amended Return Statement providing a line by line explanation of changes. If a defense against penalties exists, we start building that defense into the explanations. Then the Managing Member signs Form 8453 or Form 8879 which allows us to e-file. Naturally, we follow up with any State requirements.
Subject to Consolidated Audit Procedures
Obviously, a correct Form 1065 has to be prepared, including iron tight documentation. But we only submit a blank Form 1065, except for the checked box G5. Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR) is also required.
I’m a LLC CPA that prepares Forms 1065, 1120-S and Schedule C. While we’re located in Wilmington NC, our virtual office allows us to offer service to national and international clients. For a free initial phone consult with a LLC CPA, please call (910) 399-2705.
Here’s a cut and pasted blurb from the IRS website which may help.
Guidance for Amended Partnership Returns
On January 8, 2007, the MeF system for Forms 1065 and 1065-B was launched. As part of this new Platform, amended returns will now be accepted for the 2006 tax year and forward. Beginning with 2006 returns, amended returns will be required to be e-filed if the taxpayer is required to file electronically based on the regulations unless the taxpayer has received an approved waiver to file that particular return in paper. All of the business rules for e-filing original returns will also be enforced for amended returns.
The requirement to file an electronic return for Form 1065 is governed by Internal Revenue Code section 6011(e)(2) and Treasury Regulations 301.6011-3(a) and 301.6011-3(d)(4).
Treasury Regulation 301.6011-3(a) provides in part that if a partnership with more than 100 partners is required to file a partnership return pursuant to Treasury Regulation 1.6031(a)-1 then the information required by the applicable forms and schedules must be filed on magnetic media.
Treasury Regulation 301.6011-3(a) provides guidance as to the definition of a partnership return. The term “partnership return” as stipulated in the aforementioned regulation, means a form in series 1065 (including Form 1065, U.S. Partnership Return of Income, and Form 1065-B, U.S. Return of Income for Electing Large Partnerships), along with the corresponding schedules k-1 and all other related forms and schedules that are required to be attached to the Series 1065 Form.
An amended Form 1065 is a “form in Series 1065” and therefore is covered by this partnership e-file regulation.
Mandated Partnerships that cannot meet the requirements of filing an electronic amended Form 1065 can request a waiver to file such amended return electronically.
A subsequent return filed after the original return will be treated as an amended return, assuming the amended return box is checked. A taxpayer filing an amended return must indicate the return is such by selecting the Amended Return checkbox (designation) in the software or the return will reject as a duplicate filing. The IRS Amended Return process requires that any e-filed return designated as an Amended Return pass all of the same business rules as an original e-filed business return. Taxpayers e-filing amended returns should have already filed their underlying tax returns.
For Form 1065 taxpayers not subject to the consolidated audit proceedings of IRC sections 6221 through 6234 (TEFRA) the easiest process for e-filing the Amended Return will be to update the underlying original for the changed items. Once the return has been updated with the changes, attach the Amended Return Statement (see Section A below) and any other supporting explanations and re-file the complete new return, ensuring that the Amended Return checkbox is selected.
For e-filing Amended Returns for Form 1065 taxpayers subject to consolidated audit proceedings of IRC sections 6221 through 6234 (TEFRA) and Form 1065-B taxpayers, see the specific instructions discussed in Sections B and C, respectively, below.
For taxpayers who e-filed original returns with voluminous PDF and/or who filed returns that used the paper or PDF option, some of the PDF/Paper information may not need to be re-filed with the Amended return if the changes do not affect the information contained in those files (e.g. PDF elections, paper/PDF 8858, 8865, etc .)
Amended returns will require, at a minimum, the following.
A. Form 1065 Returns Not Subject to the Consolidated Audit Proceedings of IRC Sections 6221 Through 6234 (TEFRA)
1. The corrected Form 1065, including all Schedules K-1, completed in its entirety with the Amended Return checkbox selected.
2. All forms, schedules and attachments that changed or that support changes on the amended Form 1065.
3. Placeholder forms to pass any applicable business rules (i.e. 8858, 8865, etc.) where there is no change to the underlying data on that form. If the underlying data has changed, the corrected form must be attached.
4. An Amended Return Statement that identifies the line number of each amended item, the corrected amount or treatment of the item, and an explanation of the reasons for each change. The statement should be attached to the 1065 return. The statement must be named Amended Return Statement.
5. A signed signature document (Form 8453-PE), or use of a Practitioner’s Pin (Form 8879-PE).
B. Form 1065 Returns Subject to the Consolidated Audit Proceedings of IRC Sections 6221 Through 6234 (TEFRA)
1. The Form 1065, without any amounts entered on the form itself, with the Amended Return checkbox selected and all Schedules K-1 attached showing the corrected amounts.
2. A General Dependency statement attached to Form 1065 which states either “See attached Form 8082 for AAR per IRC section 6227(c)(1)” or “See attached Form 8082 for AAR per IRC section 6227(c)(2)”.
3. Form 8082 completed in its entirety.
4. A signed signature document (Form 8453-PE), or use of a Practitioner’s Pin (Form 8879-PE).
C. Form 1065-B
1. The Form 1065-B, without any amounts entered on the form itself unless the partnership elects to pay any tax due and with the Amended Return checkbox selected.
2. A General Dependency statement attached to Form 1065-B which states “See attached Form 8082 for AAR per IRC section 6251 ”.
3. Form 8082 completed in its entirety and corrected Schedule K-1s attached.
4. If tax is due and the partnership elects to pay the tax, enter the amount on Line 26 of Page 1 of Form 1065-B and attach a computation of the tax to Form 8082.
5. A signed signature document (Form 8453-B), or use of a Practitioner’s Pin (Form 8879-B)
Need to do an amended form 1065 - how do we proceed and how much that will cost me?
OK Shahid, I’d need to see the original Form 1065 and have a conversation with you about why we’re amending it. Then I can give you a price. My email is gary@garybodecpa.com. You cab call me at your convenience at (910) 399-2705.