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Posted by Rich Carreiro on June 21, 2007, 5:43 pm
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Years ago (like around 15+ years ago), at the height of the
investment club fad, some friends and I were going to start
a club. We got as far as drafting a partnership agreement
and applying for and receiving an EIN for the partnership (I
was filer of the SS-4 for the partnership). But that was
it. No money was ever contributed, no accounts were ever
opened, no income was ever received, no income was ever
reported under the EIN by any payor, no meetings were ever
held, and no partnership tax returns were ever filed (not
even "all-zero" returns).
So after all this time, how do I/we tell the IRS that the partnership
has essentially been defunct ab initio and get the EIN cancelled
without being hit with god-knows-what penalties for non-filing of
partnership returns?
--
Rich Carreiro rlcarr@animato.info
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Posted by Harlan Lunsford on June 24, 2007, 10:41 pm
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Rich Carreiro wrote:
> Years ago (like around 15+ years ago), at the height of the
> investment club fad, some friends and I were going to start
> a club. We got as far as drafting a partnership agreement
> and applying for and receiving an EIN for the partnership (I
> was filer of the SS-4 for the partnership). But that was
> it. No money was ever contributed, no accounts were ever
> opened, no income was ever received, no income was ever
> reported under the EIN by any payor, no meetings were ever
> held, and no partnership tax returns were ever filed (not
> even "all-zero" returns).
>
> So after all this time, how do I/we tell the IRS that the partnership
> has essentially been defunct ab initio and get the EIN cancelled
> without being hit with god-knows-what penalties for non-filing of
> partnership returns?
My granddaddy gave the best possible advice in a case like
this: "Let sleeping dogs lie."
IOW, an EIN really never expires or goes away; just there in
limbo. IRS won't care.
ChEAr$,
Harlan Lunsford, EA n LA
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Rich Carreiro on June 26, 2007, 12:19 am
Please log in for more thread options > Rich Carreiro wrote:
>> So after all this time, how do I/we tell the IRS that the partnership
>> has essentially been defunct ab initio and get the EIN cancelled
>> without being hit with god-knows-what penalties for non-filing of
>> partnership returns?
> My granddaddy gave the best possible advice in a case like
> this: "Let sleeping dogs lie."
I'm tempted to do that.
However, there's the non-trivial chance I may need to apply
for an EIN in the future (like needing one to start a solo
401(k)), and as I recall, one of the questions on the SS-4
is have you ever applied for an EIN before, and if so, what
was the EIN. So I'd expect they'd at least look into the
old EIN, and so would like to regularize its status
beforehand.
--
Rich Carreiro rlcarr@animato.info
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Stuart Bronstein on June 27, 2007, 10:53 pm
Please log in for more thread options >> Rich Carreiro wrote:
>>> So after all this time, how do I/we tell the IRS that the
>>> partnership has essentially been defunct ab initio and get the
>>> EIN cancelled without being hit with god-knows-what penalties
>>> for non-filing of partnership returns?
>> My granddaddy gave the best possible advice in a case like
>> this: "Let sleeping dogs lie."
> I'm tempted to do that.
>
> However, there's the non-trivial chance I may need to apply
> for an EIN in the future (like needing one to start a solo
> 401(k)), and as I recall, one of the questions on the SS-4
> is have you ever applied for an EIN before, and if so, what
> was the EIN. So I'd expect they'd at least look into the
> old EIN, and so would like to regularize its status
> beforehand.
But that wasn't YOU applying for the EIN, it was a
partnership of which you were a partner. So you can
properly answer no, you have not - unless you are applying
for another number for the same partnership.
At least that's the way I always interpret the question. I
apply for EIN's for newly formed corporations all the time,
and always answer "no" to that question, because I am
answering on behalf of the corporation, which wasn't in
existence until just before that time and never applied for
an EIN before.
Stu
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by BR on June 27, 2007, 10:53 pm
Please log in for more thread options Rich Carreiro wrote:
>> Rich Carreiro wrote:
>>> So after all this time, how do I/we tell the IRS that the partnership
>>> has essentially been defunct ab initio and get the EIN cancelled
>>> without being hit with god-knows-what penalties for non-filing of
>>> partnership returns?
>> My granddaddy gave the best possible advice in a case like
>> this: "Let sleeping dogs lie."
> I'm tempted to do that.
>
> However, there's the non-trivial chance I may need to apply
> for an EIN in the future (like needing one to start a solo
> 401(k)), and as I recall, one of the questions on the SS-4
> is have you ever applied for an EIN before, and if so, what
> was the EIN. So I'd expect they'd at least look into the
> old EIN, and so would like to regularize its status
> beforehand.
When I changed my business from a sole proprietorship to an
S corp, I had to get a new EIN for the newly formed
corporation. Didn't have to do anything with the old one,
so I suppose that if for some reason I wanted to go back to
being a sole proprietor I could just reuse the EIN
associated with it.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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