Backdating an employment contract start date

For example, in a recent Tax Court case, a dispute arose in regard to a change in ownership of interests in a limited liability company (LLC).

For LLC's taxable as a partnership, the members are of the LLC are taxable directly on their percentage share of the income and losses of the LLC.

If you just need to make one change to a formal agreement, or even several minor ones, creating a Contract Amendment is much simpler than preparing a whole new contract.

Your Contract Amendment should include information like: the name of the original contract or agreement; the parties involved; the effective date of the amendment; the part of the contract being changed, added to, or deleted (be as specific as possible, listing specific subsections); and the nature of the change (an edit, deletion, or addition).

Using a Contract Amendment saves you time because you don't have to start from scratch, plus it keeps things from getting confusing later on when potential questions come up about an out-of-date contract.

You can use a Contract Amendment to make changes to one or more provisions of an existing contract.

Therefore, the documentation will often indicate a date the documents are signed, and a retroactive "effective date" for the transfer.

The IRS sought to apply the retroactive date – and the taxpayers argued that such a retroactive date would be an unenforceable backdating of a document and should be ignored. It is interesting that this is the opposite of what you would expect – normally it is the taxpayer that wants to use the prior effective date and the IRS seeking to ignore it.The case was instructive of several principles that apply to retroactive effective dates.These include:-impermissible "backdating" generally involves an effort to make it appear that the document in question was executed on a date prior to its actual execution date; there is an effort to mislead the reader.Be sure to include the titles of the representatives of both parties.Other names for this document: Contract Modification, Amendment to Contract You can use a Contract Amendment to make changes to one or more provisions of an existing contract.

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