How to file 1065X for a missed final return designation on 2016 Partnership return

Thanks for the info! Do you happen to know if there's a time limit for filing the 1065X in this situation? It's been several years since the original return was filed.

There's generally a 3-year statute of limitations for filing amended returns from the date the original return was filed. However, this is a unique situation where you're not changing any financial information, just correcting an administrative detail. The IRS often shows flexibility in these situations since you're attempting to correct the record and stop future notices. I'd recommend filing the 1065X regardless of the time passed, with a clear explanation. Even if technically outside the amendment window, they'll likely process it to update their records and stop sending notices for unfiled returns.

How exactly does that work? Did you have to upload your old tax documents to the site? I'm a bit wary of sharing my old tax info online.

Did they help with actually filing the 1065X or just give advice? I'm wondering if they handle the whole process or just tell you what to do.

You can upload the original return and any relevant documents, and their system analyzes them to provide specific guidance. They use bank-level encryption for all documents, so security is solid. I felt comfortable after reading their privacy policy. They don't file the documents for you - they're not a tax preparation service. They analyze your situation and provide detailed guidance on exactly what to do. In my case, they explained which boxes needed to be checked on the 1065X, what explanation would be most effective based on IRS acceptance patterns, and even provided a template for the explanation section that I could customize.

How does this actually work? Seems like it would be impossible to get through to the IRS no matter what service you use. I've been trying for months.

Sounds too good to be true. The IRS phone system is completely broken - I find it hard to believe any service could actually get through when millions of people can't.

It works by constantly calling the IRS on your behalf using their automated system. When you use the IRS phone system as an individual, you typically get the "high call volume" message and get disconnected. Claimyr's system keeps dialing until it gets through, then alerts you to join the call when an actual IRS agent is on the line. Their system basically waits in the phone queue for you. I was skeptical too, but after trying unsuccessfully for nearly three weeks to reach someone, I got connected in under an hour using their service. The IRS agent was able to put a hold on future notices while my 1065X was processing, which prevented more headache and potentially saved me from penalties for "unfiled" returns.

That's a really good point I hadn't considered. We operated in two states actually. Did you just file amended state returns similar to the federal 1065X, or was there a different process for the state filings?

For my situation, it varied by state. In California, I had to file a formal business entity dissolution form with the Secretary of State first, then file a final state tax return checking the "final return" box. In New York, I just needed to file an amended final return. I'd recommend checking your specific states' requirements on their department of revenue websites. Some states require you to settle any outstanding tax obligations before they'll accept your final return, so you might want to call them directly to check your status.

In my experience, the IRS generally doesn't assess penalties for this specific situation when you're just marking a return as final and not changing any financial information. I filed a 1065X four years after the original return just to mark it final, and there were no penalties. Make sure you clearly state in the explanation that you're not changing any financial information - just correcting the administrative oversight of not marking it as final. That seems to be the key in avoiding penalties.

This is really reassuring to hear! I'm dealing with a similar situation from 2018 and was worried about potential complications from the delay. The certified mail tip is particularly helpful - I hadn't thought about documenting the filing date that way. Did you have any trouble with the IRS accepting the partner agreement documentation, or did they process it without questioning the informal dissolution? I'm in a similar boat where we just stopped operations and divided assets according to our partnership agreement without formal state filings.

The IRS didn't question the informal dissolution at all. I think the key was being transparent about exactly what happened - I explained that while we didn't file formal dissolution paperwork with the state, the partnership had genuinely ceased all business activities and distributed assets according to our original partnership agreement. In my explanation section, I included the date operations stopped, how we handled final expenses, and how assets were divided among partners. The signed statement from all partners confirming these facts seemed to give them confidence that this was a legitimate business ending rather than just trying to avoid filing returns. The whole process was much smoother than I expected. I think they see these situations frequently and are more interested in closing out inactive entities than creating complications for people trying to clean up old records.