In every LLC partnership document I have reviewed, the maximum loss to a Member is their capital contribution. But if the IRS assesses a non-filing penalty to a defunct LLC, are the members liable?
If an LLC does not file its K-1 information return, can the IRS penalty flow up to the Members?
Answers
The answer is yes, IMHO, if the LLC had income. As an individual you should have recorded a fair estimate of that income along with an explanation.
On the other hand as a general member of the LLC, you should have access to the numbers and can always file the return itself.
Of there is no income/ loss, the IRS doesn't really care if you overpaid - but be mindful of statute of limitations for filing ended returns.
POI: I am not a
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