Question

IRS Notice CP282 - Do not understand directions

Forum|Forum|5 years ago
April 15, 2021
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I am so confused - I received IRS Form CP282 indicating that we might have additional filing requirements since my business partner is a Canadian, on a provisional green card here in the US. She has a U.S. SSN. This was our first year filing and reported no income for the business, nothing was paid out to either partner, and no withholdings were made. We reported a complete loss, which is indicated on our K-1, and form 1065.

Do I need to file Forms 8804, 8805 & 8813 or do I write "Not Liable" at the top of the notice we received and return it to the IRS? I read through the directions on the website but honestly, it is all Greek to me. I am completely lost. Please help.

Thank you in advance.

TurboTax Business Windows

DaveF1006

Yes, I researched each one of these requirements and each of these forms are required only if you earned income and withheld taxes during the year. Here is a summary of the three forms found here and the instructions for all three forms are found here..

The withholding tax liability of the partnership for its tax year is reported on Form 8804. Form 8804 is also a transmittal form for Forms 8805. Any additional withholding tax owed for the partnership's tax year is paid (in U. S. currency) with Form 8804. A Form 8805 for each foreign partner must be attached to Form 8804, whether or not any withholding tax was paid.
Foreign Partner's Information Statement of Section 1446 Withholding Tax. Form 8805 is used to show the amount of effectively connected taxable income and any withholding tax payments allocable to a foreign partner for the partnership's tax year.
The 8813 form is used to make payments of withheld tax to the United States Treasury. Payments must be made in U. S. currency by the payment dates. File Form 8813 on or before the 15th day of the 4th, 6th, 9th, and 12th months of the partnership's tax year for U.S. income tax purposes.

Since you had no income, tax liability or withholding, you do not need to file these forms. Send in a detailed statement with that letter to attest to the fact you no filing requirement this year because you have no income. Keep this information handy because when you start to receive income, you will have these additional filing requirements to meet.

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