This has been such a comprehensive discussion! As someone who works in tax preparation, I wanted to add a few practical points that might help future filers: If you're using tax software and still want to double-check your formatting, most programs have a "preview" or "form view" option that shows exactly how your return will look when printed or submitted. This is a great way to verify that negative numbers are formatted consistently before filing. Also, for those worried about rejection due to formatting - in my experience, the IRS automated processing systems are quite forgiving with minor formatting variations. Returns are much more likely to be flagged for mathematical errors, missing signatures, or incorrect SSNs than for using minus signs vs. parentheses. That said, following the standard conventions (parentheses for paper forms, letting software handle electronic filing) is always the safest approach. When in doubt, consistency within your own return is more important than perfect adherence to any single format standard. Great job everyone sharing resources and experiences - this kind of community support makes tax season so much less intimidating for newcomers!

Just wanted to share my experience as someone who made this exact mistake last year! I mixed minus signs and parentheses throughout my return because I started filling it out by hand, then switched to software halfway through, and didn't catch the inconsistency. My return got flagged for manual review and took an extra 6 weeks to process. The IRS eventually sent me a letter asking for clarification on several line items - not because the amounts were wrong, but because the inconsistent formatting made their system flag it as potentially having errors. After that experience, I'm super careful about formatting consistency. This year I'm using parentheses throughout (following the advice in this thread) and double-checking everything before I submit. For anyone still unsure - the key takeaway from all these responses seems to be that either format works, but pick one and stick with it consistently across all your forms. The IRS processing systems are designed to handle both, but mixing them can cause unnecessary delays.

Anyone else notice that CPAs always seem to ask for something you didn't bring? No matter how prepared I think I am, my accountant always says "do you have the _____ form?" and I never do lol. For my partnership, the thing I always forget is the information about partner draws throughout the year. If you took any money out of the business for personal use, track all of that carefully!

Great advice from everyone here! As someone who's been through several 1065 filings, I'd add a few more items to bring: - Any Section 179 elections you want to make for equipment purchases (allows you to deduct the full cost in the current year rather than depreciating) - Documentation of any business meals (new rules allow 100% deduction for meals from restaurants through 2022, then back to 50%) - Records of any estimated tax payments made during the year - Information about any rentals paid to partners (office space, equipment) as these need special treatment - Details of any fringe benefits provided to partners Also, since this is your first year, ask your CPA about making an election to use the cash method of accounting if you haven't already - partnerships with average gross receipts under $27M over the past 3 years can usually use cash method, which is simpler for small businesses like yours. One more tip: bring a list of questions! Your CPA fee likely includes reasonable consultation time, so take advantage of their expertise to understand your ongoing compliance requirements.

Anyone know if this also applies to the additional Medicare tax? I'm above the threshold for that too and wondering if that gets handled the same way when switching employers.

This is exactly what happened to me two years ago when I switched from a startup to a big tech company mid-year. The frustrating part is watching your new colleagues celebrate their "SS tax holiday" while you're still getting hit with the full deduction! One thing I learned the hard way - make sure you keep detailed records of your pay stubs from both employers throughout the year. When tax season came around, I had to dig through months of pay stubs to calculate the exact overpayment amount. Having everything organized made the refund process much smoother. Also, if you're using tax software, most of the major ones (TurboTax, H&R Block, etc.) will automatically calculate your excess Social Security tax refund when you enter your W-2 information. They'll flag it and walk you through claiming it on Schedule 3. Just double-check their math - I caught a small error one year that would have cost me about $200. The silver lining is that you essentially get an interest-free loan to the government that you'll get back at tax time. Not ideal, but at least it's not lost money!

I've been through this exact situation with my partnership and can tell you that Rev Proc 84-35 denials are frustrating but very fixable if you know what the IRS is actually looking for. The biggest mistake people make is thinking that simply stating "all partners filed timely and reported their income" is enough proof. The IRS wants documented evidence, not just your word. Here's what likely happened with your request: **Common reasons for denial:** - Missing specific partner documentation (Schedule E copies) - Vague language that doesn't precisely match Rev Proc 84-35 requirements - Incomplete partner information (missing filing dates, exact income amounts) - Not properly certifying each element of the relief requirements **What to do now with your CP504B:** 1. Don't panic - this is still very resolvable 2. Call immediately to request a collection hold while you prepare proper documentation 3. Prepare a much more detailed reconsideration package **Key documents for reconsideration:** - Schedule E from each partner's 1040 showing partnership income reported - Signed certification from each partner with their filing date and income amount - Cover letter specifically referencing "Rev Proc 84-35 relief under IRM 20.1.2.3.3.1" - Table summarizing all partner information in one place The good news is that partnerships who truly qualify for this relief almost always get it approved on reconsideration when they provide complete documentation. The IRS just wants ironclad proof you meet the requirements - give them that and you should be fine. Time is critical with a CP504B though, so start gathering documents immediately while you call about the collection hold.

@Mateo Gonzalez - I completely understand your frustration with this situation. As a fellow small business owner who went through something very similar, I can tell you that Rev Proc 84-35 denials are incredibly common on the first attempt, but they're usually fixable with the right approach. The CP504B escalation sounds scary, but don't let it panic you into making hasty decisions. Here's what I'd recommend doing immediately: **Step 1: Call the IRS today** Use the number on your CP504B notice and specifically request a collection hold while you prepare additional documentation for Rev Proc 84-35 relief. Be clear that you're not disputing that you owe penalties, but that you believe you qualify for statutory relief and need time to provide proper documentation. **Step 2: Identify what went wrong** Most Rev Proc 84-35 requests get denied because the IRS didn't receive adequate proof that ALL partners actually reported their partnership income on timely filed returns. They want concrete evidence, not just statements from your tax professional. **Step 3: Prepare a bulletproof reconsideration package** - Get copies of Schedule E from each partner's Form 1040 showing the partnership income was reported - Create a detailed table with each partner's name, filing date, and exact partnership income amount - Have each partner sign and date a certification statement - Reference "Rev Proc 84-35 relief per IRM 20.1.2.3.3.1" in your cover letter - Send everything certified mail with return receipt The good news is that partnerships who genuinely qualify for this relief almost always get it approved on reconsideration when they provide complete documentation. You just need to give the IRS ironclad proof you meet every requirement. Time is critical with a CP504B, but this is absolutely resolvable if you act quickly and thoroughly. Don't give up on the relief you're entitled to!

Remember that gambling income is taxable even if you didn't get a W2G form. The IRS requires you to report ALL gambling winnings, even small amounts. Player cards at casinos can also track your activity.

The IRS gets copies of all W-2G forms that casinos issue for winnings over $1,200 (slots/bingo) or $5,000 (poker tournaments). Your transcript will definitely show these reported amounts even before you file your return. If you had $50k in wins, that's likely already in their system. Best to get your transcript now and see exactly what they have on file - you can request it free directly from IRS.gov. Don't risk penalties by underreporting what they already know about.