I created an LLC in 2007. Filed IRS form 1065 in 2007, but then in 2008 and 2009 did not file. My reason for not filing, is that a 17% sub-LLC owned by us did not supply us with any formal tax information or form K-1 , since 2008, to complete our tax reports for the LLC. In 2010, we did file form 1065, even while still missing the tax data from the other sub-LLC, in order to pay a capital gains tax on the sale of another property owned by the main LLC . Should we now file incomplete returns for the tax years 2008 and 2009 ? If we will do so, then I understand we might need to pay a huge IRS late filing fee because the LLC has seven partners. Or I could now file form 1065 on time for the tax year 2011, and continue to wait to receive a K-1 form in the future fromt the 17% owned sub-entity LLC ? But if I wait, the penalties still exist and could grow with interest added. Or should I file now incomplete reports and then ask for rebatement of penalties, but it is not clear if that will be allowed ?
