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Our CPA filed a "no activity" return that held title to

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Our CPA filed a "no...
Our CPA filed a "no activity" return for LLC that held title to vehicles used by sister corp, yet assets and associated liabilities (loans) were on on the corp's balance sheet. I realize this would not give us the limited liability protection we sought, but what will the IRS think of such a situation.
Submitted: 1 year ago.Category: Tax
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7/22/2016
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 1 year ago
PDtax
PDtax, Certified Public Accountant (CPA)
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Tax Professional: PDtax, Certified Public Accountant (CPA) replied 1 year ago

This is a common filing, as many small entities have little to no activity at some point in their existence. IRS is accustomed to seeing these. They are often a precursor to a final return and a liquidation.

And it does give liability protection, as you report you continue to hold the assets in a business structure. You need not be operating to get the liability protection the entity provides.

Thanks for asking at Just Answer. Please rate my response using the rating scale below to close out your request. I'mCustomer

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