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I had a business with a partner and my share was sold in…

Customer Question
I had a business...

I had a business with a partner and my share was sold in 2015, but the person only paid me 2000.00 and the name was not transferred to the buyer. what do I need to do to dissolve the tax ID or remove my name.

Accountant's Assistant: Has anything been officially filed? If so, what?

I am not sure if the purchaser filed any thing.

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

They are using the tax id and my name is ***** ***** the business.

Submitted: 3 months ago.Category: Tax
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Answered in 4 hours by:
4/3/2018
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 3 months ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,085
Experience: 35 years tax experience, including four years at a Big 4 firm.
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Hi from Just Answer. I'mCustomer and can assist.

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Tax Professional: PDtax, Certified Public Accountant (CPA) replied 3 months ago

Once you sold your share of a partnership, if it was a 50% interest, the partnership technically terminated. It means that a final tax return should have been filed showing your interest going to 0%. The partnership is deemed to re-form the next day, and it sounds like they simply used the same EIN.

When you say the name was not transferred, does that mean you are still a partner? I assume so, and will answer accordingly.

If you are still a partner, getting K-1, file form 8082, Notice of Inconsistent Treatment, when you file your personal return. This notifies IRS of the issue, and they will investigate.

Beyond that, your sale agreement typically lists remedies available to you upon a breach, such as not making payments as agreed. You could bring a civil action in court to compel several things, including your claim for any remaining payments due.

If you are the named owner, you can notify the secretary of state in your state that you are no longer a partner. There may be legal notices you should consider if/when you hire an attorney. Torts of a partnership are torts of any and all partners, and since you are not completely released from the partnership, there may be additional public notifications to consider.

Thanks for asking, and good luck. Please consider retaining an attorney to advise. Positive feedback, five stars please, is appreciated. I'mCustomer

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