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Author: LAPhil One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Re: Final K-1 for a failed company Date: 4/5/2011 8:18 PM
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Have you been in communication with the company's management about a final tax return?

Of course you could file your return and claim the loss for your remaining basis. It would be nice to have some documentation for that, of course.

What kind of company was it? A partnership, LLC, S-Corp?
Were articles of dissolution filed? Can you get a copy?
If you had that, it's better than nothing.

What was your role in the company? Were you an officer, managing member, whatever? If so, you might have a personal responsibility to file the final return for the company.

And if it was an S-Corp, and the shares were issued directly to you, you might qualify to take the loss on your stock as a 1244 (ordinary)loss, instead of a capital loss.



Bill,

I have been communicating with the company's president and it turns out that one of the reasons the company has not filed its taxes is due to a large tax liability from 2009. Filing in 2010 would mean it would have to settle that liability.

The company was an LLC.

I was a passive investor in the company. I was not on the board but I was invited to attend annual meetings and vote. What is the responsibility of the board to file final returns? I would like them to take ownership of this issue but instead they are replying that they don't have the funds to perform the final accounting.

Thanks for your reply.
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