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I had a California registered Limited Liability Company that…

Hello, I had a...

Hello, I had a California registered Limited Liability Company that went out of business in 2012. The California Franchise Tax Board won

Accountant's Assistant: The expert will know how to help. Please tell me more, so we can help you best.

Hello, I had a California registered Limited Liability Company that went out of business in 2012. It has remained 100% out of business and makes no income. The California Franchise Tax Board will not let me close the LLC until I bring the state tax returns current to 2016 and pay a fine which amounts to about $800 a year plus interest. I filed my 2013 CA tax return for the LLC at zero income since I am out of business. I voluntarily filed my 2013 LLC return with the Federal Government for $0 and then received a letter from the IRS for a very large penalty for not filing at a rate of $195 per month from 2013 to now. My question is can I revoke the 2013 Federal US Partnership Return for the LLC and not file at all to get out of the IRS penalty? I am attempting to work with the State of California on some sort of reductionin penalty but it is very hard to do in California. If I can revoke, how do you recommend I do that on the 2013 Return? Thank you.

Accountant's Assistant: Is there anything else the expert should be aware of?

The LLC is no longer a partnership and I remain as the sole contact for the LLC.

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Customer reply replied 6 months ago
The IRS in their penalty letter to me said I can send in information on why the penalty should be eliminated or reduced. I am looking for an expert to tell me how to respond to their letter (and I hope you agree) that I am revoking or rescinding the 2013 US Return of Partnership because the LLC was not in business at all and I filed it by mistake. I am working the State of California California Franchise Tax Board and California Secretary of State to formally close the LLC going back to 2012.
Answered in 1 hour by:
8/13/2017
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,781
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

If you can obtain the documentation from CA that the business was closed as of 2012, you can send that documentation to the IRS which will automatically remove the penalties.

In the meantime, you can send the IRS a letter explaining exactly what happened. You may want to get a CPA/Enrolled Agent involved to intercede on your behalf. Once it is proven to the IRS that the business ceased to exist since 2012, the penalties will no longer apply.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,781
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Thank you very much for the positive rating of my answer. I really appreciate it.

If you need help with drafting the appropriate letter to the IRS, let me know.

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