My business (llc with 25% ownership) filed bankruptcy in 2010. I took out draws in access of $300,000. I did file a personal tax return jointly with my wife but did not include any of the income/draws from this business. I was told that the trustee would file the taxes on the business and distribute out a K1 which once received i would need to amend the taxes.
2-1/2 years later the trustee CPA said they will not file the taxes on the company due to the complexity of the business.
My question is am I liable to report this 300k with the IRS?
Any advise on how to handle this situation?
1 Answer from Attorneys
Get a CPA to handle your taxes.