With backdating dating old cast iron
However I don't think backdating to show proper intent and substance is necessarily wrong.
Facts and circumstances as to how the LLC's went about their business are needed.
The problem is that, I believe, to enable this scenario to become reality, there should have been an amendment made to the original operating agreement for each of the six LLCs indicating a transfer of ownership from the husband and wife, to the S-corp, which is also owned 50/50 by the husband and wife.
As I understand it, this amendment should have been created and signed immediately after the original agreement so that this ownership would have been in effect for the entire year, or since inception in the case of the new entities.
At this point, is it just as impossible for us to put the two initial LLCs that were split out from the original S-corp, back into the original S-corp as if no change had been made from a tax preparation point of view?
Any advice anyone can give on all this will be very much appreciated.
Fraudulent backdating to provide a tax advantage is illegal.
The LLCs would have been “disregarded entities” with the owner being the holding company, 100%.
This would have reduced tax return preparation time for year 2012 by making it possible to file just one consolidated return, and this arrangement would have made it possible for the profits and losses of these six entities to be netted against each other within the holding company S-corp.