Technical topics regarding tax preparation.
19-Aug-2019 11:09am
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A few questions about the 'Tax Matters Partner' of a LLC.
Is the partner who provides tax information to the tax preparer and communicate with the tax preparer for the preparation of the LLC tax return considered to be the 'Tax Matters Partner' by default?
Lets say Partner A was the one who worked with the tax preparer to prepare the LLC 2017 tax return. Then he was the 'Tax Matters Partner' in year 2017.
But then Partner B took over the works to provide the tax information to the tax return preparer for 2018 LLC tax return filing. Then Partner B should be designated as the 'Tax Matters Partner'' on the LLC 2018 tax return.
Opinion?
19-Aug-2019 11:11am
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The Tax Matters Partner is designated by the Partnership/LLC. Usually in the Operating Agreement.
For 2018 and future tax returns, this is no longer a thing.
19-Aug-2019 11:20am
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Need to get the lingo right. As sjrcpa said, there is no longer a Tax Matters Partner. Now it is “Partnership Representative.”
Plus, it really does not have much to do with preparing returns. It is primarily the person designated to deal with the IRS on an audit.
19-Aug-2019 11:23am
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sjrcpa wrote:The Tax Matters Partner is designated by the Partnership/LLC. Usually in the Operating Agreement.
For 2018 and future tax returns, this is no longer a thing.
Thank you. You are right. Starting in 2018, it becomes the 'Partnership Representatuve'. So it still brings up the same question. Is the partner who provides tax information and communicate with the LLC tax return preparer considered the "Partnership Representative" by default?
19-Aug-2019 11:25am
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Pitch78 wrote:Need to get the lingo right. As sjrcpa said, there is no longer a Tax Matters Partner. Now it is “Partnership Representative.”
Plus, it really does not have much to do with preparing returns. It is primarily the person designated to deal with the IRS on an audit.
But is the "Tax Matters Partner" or the "Partnership Representative" designated in the LLC tax return also the one who has to sign the tax return?
19-Aug-2019 11:28am
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No the designated party does not have to sign the 1065.
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