01
The challenge
The clients had grown a portfolio through more than 30 LLCs but had not filed returns since 2021, and the IRS had set a firm response date. Activity sat across dozens of bank and card accounts, intercompany transfers were unrecorded, and no one had confirmed how each LLC was classified for tax. Each year depended on the closing balances of the year before, so the work could not be split and run in parallel.
02
Our approach
- Entity inventory first. We confirmed each LLC's EIN, state of formation, members and federal classification (disregarded entity, partnership or elected corporation) before touching a number.
- Oldest year first. We closed 2021 completely, then rolled opening balances, MACRS depreciation and partner tax basis capital forward year by year through 2025.
- Per-entity, per-year scoping. Bookkeeping was billed hourly and tax work at fixed fees per entity-year, with volume pricing across 150+ entity-years.
- Separate returns, coordinated positions. Each spouse's Form 1040 reported only the LLCs that spouse owned, with Schedule E and K-1 income allocated consistently.
- Penalty review and secure signing. Late-filing penalty exposure was assessed for first-time abatement and reasonable cause, and every Form 8879 was signed with identity verification.
03
Results delivered
- Books reconciled for every LLC, every month, January 2021 to December 2025.
- Five years of individual returns for each spouse, plus all partnership returns and K-1s, e-filed by an authorized IRS e-file provider.
- Depreciation schedules rebuilt from closing statements, so future years start from correct basis.
- Clients moved onto a year-round bookkeeping and filing cycle.
04
Frequently asked questions
Yes. A CPA can prepare all missing years together, but they should be finalized oldest first because depreciation, basis and loss carryforwards flow from one year to the next.
Not always. A single-member LLC is usually disregarded and reported on the owner's Form 1040. A multi-member LLC generally files Form 1065 and issues a Schedule K-1 to each member.
The IRS can prepare a substitute for return without your deductions and assess penalties and interest. Filing complete, accurate returns first usually leaves you in a stronger position.
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