What If I Make a Mistake in Filing as a Qualified Joint Venture?

Question: What If I Make a Mistake in Filing as a Qualified Joint Venture?

A husband-wife business that is not a corporation may be able to elect to be a Qualified Joint Venture (QJV). As a QJV the business can take advantage of filing two Schedule C forms as part of the couple's personal tax return, instead of the more complicated partnership return. But what if you make a mistake and file incorrectly as a QJV?

Answer:

A reader said that she and her husband filed their business taxes on two Schedule C's for 2009, then they discovered that they did not meet the QJV qualifications because the husband does not materially participate in the business. He has no regular duties; he just helps out when the wife gets busy. CPA Gail Rosen says that if they did not qualify as a QJV, then they must file an amended federal income tax return for the year in question.

Gail Rosen, CPA is the owner of a well-respected boutique accounting firm in Martinsville, NJ that has been serving individual and business clients for over 27 years. In addition to tax preparation, the firm specializes in assisting business start-ups in understanding their tax responsibilities and what deductions they are entitled to. Gail has earned a reputation for putting complex tax issues into language others can comprehend and profit from. You can email her at grosen@gailrosencpa.com.

Disclaimer: The information in this article and on this GuideSite are for general information purposes only; it is not intended to be tax or legal advice. Each situation is specific; consult your CPA or attorney to discuss your specific business questions.

For More Information, read this IRS article:
Election for Husband and Wife Unincorporated Businesses

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