About Mike Wellman Expertise I can answer questions dealing with financial accounting, tax accounting, bookkeeping and payroll issues. NO PENSION questions.
Experience Certified in 1980. Experience with Fortune 15 company in finacial accounting, manager at Price Waterhouse and then over 20 years with small business clients.
Question QUESTION: My boss says there is a regulation that states a partnership with less than 10 partners is not required to file a 1065. I cannot find such a regulation. Is there one?
ANSWER: You boss is nuts. Of course not.
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QUESTION: I found out he's not nuts. I found the code.
I forget the code that talks about the above (its at work. But from the code, you can abate the penalty thru revenue procedure 84-35. There are many that do not realize this is out there.
Answer Hold on there cowboy. Your question asked if a partnership with fewer than ten partners is required to file a 1065. The answer is, of course they are. The regs you cited relate to the late filing penalty - a rule I am very familiar with. In order to abate the penalty - you MUST file the return among other things to establish reasonable cause. So the answer remains that the return must be filed.
