An LLC taxed as a S-Corp, with 2 members, sold on the 1st of October, 2020. The Seller and the buyer are both my clients. How do I handle the tax return? The sellers had 75%and 25%. the buyers will have a 50/50%. The sellers have income and expenses from 01-01-2020 thru 09-30-2020 and the buyers have income and expenses for 10-01-2020 thru 12-31-2020. It is one entity. I was told to file a short year tax return for both? I have never heard of doing that? now I'm confused.