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Can I sign the tax return for an LLC as the Tax Matters Partner, or "Tax only designation" so as to not get construed as

Los Angeles, CA |

holding some management or other position within the entity? My family members have a LLC and want me to prepare the tax return, which is fine with me, but since they are out of state I was going to sign and send it, but my title when I sign should be something that indicates I am not a partner, member, manager, etc. So can I use something like "tax preparer" or better yet "unpaid tax preparer" ?

Attorney Answers 3

Posted

If you are not a member of the LLC you must have a proper power of attorney specifically designating authority to sigh the return.

This response is for informational purposes only and is not intended for legal advice. IRS Circular 230 Disclaimer: To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein.

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Posted

You should not sign the LLC tax return as the Tax Matters Partner because this designation indicates that you are a partner of the LLC with authority to handle all IRS communications and administrative proceedings for the LLC.

If you are not compensated for preparing the tax return then you may not be considered as a tax return preparer (TRP) as defined under the Internal Revenue Code (IRC). As such, you may prepare the return but you are not required to sign the return because you are not a TRP under the IRC.

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Posted

Do not sign as you are not designated as a tax matters partner.

Why do they want you to sign the return any way?

BW

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