Chico, CA asked in Tax Law and Business Law for California

Q: Can a "General" defined partnership in the state of CA redistribute partnership income on a 1065 schedule B in any way.

My partner and I want to readjust our general partnership distribution for 2016. No partnership paper work was ever filed. Our retired CPA says yes our new EA says no.

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2 Lawyer Answers
Matthew M Montoya
Matthew M Montoya
Answered
  • Tax Law Lawyer
  • Lone Tree, CO

A: Rather than add a third opinion into the mix, why not ask your CPA and EA to meet with you at the same time to discuss the issue? While it may seem like it's an issue of who you trust more, it's more about trying to understand what they're seeing. Tax is a complex world and there are many ways to accomplish certain goals. It's really good to hear that you are working with tax professionals. However, part of taking control of your tax situation is to have a relationship with your advisers and to understand the basics of why they are advising you in a particular fashion. Learn their reasoning and see where to go from there.

Zaher Fallahi agrees with this answer

Zaher Fallahi
Zaher Fallahi
Answered
  • Tax Law Lawyer
  • Los Angeles, CA
  • Licensed in California

A: Generally, the partnership profit and loss ratios may be adjusted as warranted under the circumstances. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Estate Planning and Tax Attorney, CPA.

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