In prior years DBSI Inc. prepared all partnership tax returns without charge. However, under bankruptcy, DBSI is not staffed to prepare tax returns and cannot expend its limited funds to hire outside tax professional services on behalf of any of its affiliates, whether they are Debtor (i.e. in bankruptcy) or non-Debtor (not in bankruptcy) entities. Therefore unless partnerships or LLC’s already have cash to hire tax professionals, contributions from partners/investors would be required to provide for normal Form 1065 and K-1 tax preparation.
The following partnerships appear to have enough current cash to hire outside tax preparation services:
Bayside-Seward Ltd Pshp, DBSI/TRI Ltd Pshp, DBSI/TRI IV Ltd Pshp, DBSI/TRI VII Ltd Pshp, Leisure Village Ltd Pshp, DBSI Albany Ltd Pshp (fka DBSI/TRI VI LP), DBSI Reedsport Ltd Pshp (fka DBSI/TRI IV LP), DBSI Boise Valley Ltd Pshp, DBSI Churchill Village Ltd Pshp, DBSI Markana Place Ltd Pshp and Pioneer Shadow Ltd Pshp.
DBSI Diversified Realty REIT Inc. and its subsidiaries appear to have cash and its board has contracted to prepare both 1099’s and REIT or other returns. The board of managers of DBSI State Offices LLC has also contracted to prepare the partnership Form 1065 and K-1’s.
Unfortunately, all other partnerships or LLC’s appear to need investor partners to contribute funds and arrange for payment of outside services as desired. Several investor groups have already arranged investor funding for their partnership return preparation in this way.
Partnership investors using their own funds are free to contract with their own tax preparers. Investors may also contact us at investorrequests@dbsi.com for lists of tax preparers known to be familiar with the DBSI partnerships.
