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Based on everyone's experiences here, it's clear that Form 843 IS required along with your detailed letter for rev. proc 84-35 relief requests. I went through this exact process 6 months ago for my single-member LLC. Here's what worked for me: I completed Form 843 with "Request for penalty abatement under Revenue Procedure 84-35" in the reason section, then attached a comprehensive letter that specifically addressed each requirement in the revenue procedure. Make sure your letter includes: - Clear statement that you're requesting relief under rev. proc 84-35 - Detailed explanation of how you meet ALL the criteria - Timeline of missed filings and circumstances - Supporting documentation (bank statements, medical records, etc. if applicable) I mailed everything together via certified mail and got approval in about 10 weeks. The key is being thorough in documenting how you qualify - the IRS agents reviewing these requests need to see that you clearly meet every requirement outlined in the revenue procedure. Don't skip the Form 843 thinking the letter alone will suffice - you need both components for a complete submission.
This is exactly the kind of comprehensive guidance I was looking for! Thank you for breaking down the specific components needed. I'm curious about the supporting documentation you mentioned - for our LLC, the late filings were due to a combination of personal health issues and confusion about filing requirements after adding a new member. Should I include medical records even if they're for personal health issues, or focus more on the business-related documentation like the LLC operating agreement changes?
Reading through everyone's experiences here has been incredibly helpful - I'm dealing with a similar situation where my LLC missed filing deadlines due to a family emergency that required me to travel out of state unexpectedly. One thing I haven't seen mentioned yet is the importance of checking which specific penalty you're requesting abatement for. Rev. proc 84-35 applies to failure-to-file penalties, but if you also have failure-to-pay penalties, those might require a separate approach or different documentation. Also, for anyone still unsure about the Form 843 requirement - I called the IRS practitioner hotline last week and confirmed that yes, Form 843 is absolutely required for formal abatement requests under rev. proc 84-35. The letter serves as crucial supporting documentation, but without the form, your request won't be processed through the proper channels. Make sure to keep copies of everything you send and use certified mail or fax with delivery confirmation. The IRS processes thousands of these requests, so having proof of submission is essential if you need to follow up later.
This is such an important distinction about failure-to-file vs failure-to-pay penalties! I'm just starting this process and hadn't realized they might require different approaches. When you called the practitioner hotline, did they mention anything about how to handle situations where you have both types of penalties? My LLC has both because we filed late AND paid late, so I'm wondering if I need to submit separate Form 843s or if one comprehensive request can cover both under rev. proc 84-35. Also, thanks for the tip about certified mail - I was planning to just use regular mail but you're absolutely right that having delivery confirmation is crucial for something this important.
Based on all the discussion here, I'm seeing a clear pattern that's making me reconsider my CPA's advice. It sounds like the main "benefits" of LLC ownership are largely psychological - cleaner bookkeeping and potential liability protection - but the practical downsides are very real and measurable. The insurance premium increases alone seem to wipe out any tax advantages, and that's before considering potential loan complications or transfer taxes. What really strikes me is that multiple people have confirmed you get the same business use deduction percentage either way. I think I'm going to stick with personal ownership and focus on bulletproof mileage documentation instead. My business is still pretty new, and adding unnecessary complexity right now doesn't seem worth the minimal benefits. Thanks everyone for sharing your real-world experiences - this has been way more helpful than the generic advice I've been finding elsewhere. Sometimes the simple approach really is the best approach!
You've really captured the key insight here - sometimes the straightforward approach is actually the smartest one! I've been following this discussion as someone new to business ownership myself, and it's been eye-opening to see how the "tax optimization" advice doesn't always pan out in practice when you factor in all the real costs. Your point about focusing on bulletproof documentation instead of ownership transfers makes a lot of sense. It seems like the IRS cares much more about whether you can prove legitimate business use than who technically owns the vehicle. Plus, avoiding those insurance premium hikes and loan complications means more money staying in your business account. I'm definitely bookmarking this thread - there's so much practical wisdom here that you just can't get from generic tax guides. Thanks to everyone who shared their actual experiences rather than just theoretical advice!
This thread has been incredibly helpful! I'm in a similar situation with a 2020 Subaru Outback that I use about 60% for my consulting business. My accountant has been pushing the LLC transfer route, but after reading everyone's real experiences here, I'm having serious second thoughts. The insurance premium increases that multiple people mentioned are particularly concerning - an extra $85-100+ per month would definitely eat into any potential tax benefits. And it sounds like the loan complications can be a real headache depending on your lender. What I'm taking away from this discussion is that meticulous mileage tracking and proper documentation of business use is really the key, regardless of ownership structure. The IRS seems to focus on legitimate business use rather than who holds the title. I'm planning to have a follow-up conversation with my accountant armed with the insights from this thread. Sometimes CPAs can get tunnel vision on tax strategies without fully considering the practical implementation costs and complications. Has anyone here had success pushing back on their CPA's advice when the real-world math didn't add up? I want to approach this diplomatically but also make sure I'm making the right decision for my specific situation.
I totally get your frustration - this happened to me with StubHub last year and I was convinced it was some kind of scam at first! But after going through it myself, I can confirm that the SSN request is completely legitimate. Payment platforms are required by federal law to collect this information for tax reporting purposes. The silver lining is that since you're selling at a significant loss ($330 original cost vs $120 sale), you definitely won't owe any taxes on this transaction. In fact, you'll have a $210 capital loss that you can report on Schedule D, which might actually help reduce your tax burden if you have other capital gains. My recommendation is to go ahead and provide your SSN to get your $120. Just make absolutely sure to keep your original Ticketmaster purchase receipt - that's going to be your proof of the $330 cost basis if you ever need to document the loss. Even if you receive a 1099-K showing $120 as income, your receipt will prove this was actually a loss once you account for what you originally paid. It's definitely annoying to deal with extra tax paperwork when you're already getting screwed by their resale prices, but $120 is still better than forfeiting it entirely. The tax reporting requirements aren't Ticketmaster's fault in this case - they're just following IRS regulations that now apply to all payment platforms.
This thread has been so helpful! I'm a newcomer here and was dealing with almost the exact same situation - sold some concert tickets at a loss and Ticketmaster was requesting my SSN. I was really suspicious at first, but hearing from so many people who've actually gone through this with different platforms (StubHub, Vivid Seats, SeatGeek) has convinced me it's legitimate. The part about being able to report it as a capital loss to potentially offset other gains is actually really interesting - I hadn't realized that losing money on tickets could actually help with taxes in some cases. I think I'm going to go ahead and provide the SSN since everyone seems to agree it's required by law now. Thanks to everyone who shared their experiences - this community is really helpful for navigating these confusing tax situations!
I went through this exact same situation with Ticketmaster about 6 months ago and can definitely confirm it's legitimate. I was selling some Coldplay tickets I couldn't use - originally paid $275 and they offered me $85 through their resale program. I was initially really suspicious about the SSN request too, especially since I was already taking such a huge loss. After doing some research and talking to a tax professional, I learned that this is actually required by federal tax law. Payment platforms like Ticketmaster have to collect SSNs for anyone they pay money to because of IRS reporting requirements, regardless of whether you made or lost money on the transaction. The good news is that since you're selling at a loss, you won't owe any taxes on this. When you file your taxes, you'll report it on Schedule D as a capital loss - your $330 original cost minus the $120 sale price gives you a $210 loss that could actually help offset other capital gains you might have. My advice: just provide the SSN and take your $120. Make sure to keep your original purchase receipt though - that's your proof of what you paid originally. Even if they send you a 1099-K showing the $120 payment, your receipt will prove to the IRS that this was actually a loss, not taxable income. I know it feels like getting kicked while you're already down with their terrible resale prices, but $120 is better than nothing, and the capital loss might actually benefit you come tax time!
This whole section 751 thing is why I've avoided partnerships like the plague. The tax complexity is just insane. My brother had a similar situation last year and ended up getting an IRS notice because his accountant misclassified some gains that should have been ordinary income as capital gains. Anyone know if LLCs taxed as partnerships have the same issue? I'm considering investing in a friend's business but worried about the tax headaches down the road.
Yes, LLCs taxed as partnerships have the exact same section 751 issues. The entity form doesn't matter - it's about the tax treatment. If the LLC is taxed as a partnership, then selling your interest will trigger these same hot asset rules. I invest in several LLCs and always make sure the operating agreement includes provisions requiring detailed tax information upon exit specifically because of these complexities.
This is exactly the kind of situation where having a knowledgeable tax professional is crucial. From my experience working with partnership distributions and sales, the K-1 reporting varies significantly between partnerships - some are very thorough with section 751 information while others provide bare minimum details. One thing to keep in mind is that the partnership's final K-1 for you should include your ending capital account balance and basis information, which your accountant will need for the overall gain calculation. But as others mentioned, the specific section 751 ordinary income calculation typically falls on you and your tax preparer. I'd recommend gathering all your partnership agreements, any amendments, and previous K-1s showing your basis adjustments over the years. Your accountant will need this historical information to properly calculate both the section 751 ordinary income portion and the capital gain/loss on the remaining interest. The more documentation you can provide upfront, the smoother (and less expensive) the process will be.
This is really helpful advice about gathering all the historical documentation. I'm dealing with a partnership sale myself and hadn't thought about collecting the previous K-1s showing basis adjustments. Quick question - when you mention "amendments" to the partnership agreement, what kind of amendments would be relevant for the section 751 calculation? Are you talking about changes to profit sharing ratios or something else entirely?
Olivia Harris
Has anyone tried doing both TurboTax and H&R Block remote work in the same season? I'm thinking about applying to both to maximize hours.
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Alexander Zeus
β’I tried that last year and it was WAY too stressful. Both companies have different software systems, different procedures, different metrics. I was constantly mixing things up and both jobs suffered. Plus, they both get busy at exactly the same time, so you don't really gain anything hours-wise. Pick one and commit to it fully.
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Olivia Harris
β’That makes total sense. Guess I was being too ambitious thinking I could juggle both. I'll just focus on the TurboTax application then. Thanks for saving me from a potential disaster!
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Yuki Tanaka
I've been working remotely for TurboTax for three seasons now and thought I'd add some perspective on what to expect beyond just the scheduling and bonus structure. One thing that really surprised me was how much you learn about taxes in general - even if you're just doing customer support rather than actual tax preparation. By the end of my first season, I understood tax concepts I never knew existed and it actually helped with my own personal taxes. The workload can be intense during peak season (March-April), but the team support is generally good. Most managers understand that tax season is stressful for everyone and try to be accommodating when possible. A few practical tips if you do get hired: invest in a really comfortable headset since you'll be wearing it for hours, make sure your workspace is quiet (customers can hear background noise), and keep a notebook handy for jotting down common issues you encounter - it'll save you time later when similar situations come up. The work is seasonal but if you do well, they often invite you back the following year, and returning workers typically get first pick of schedules. Overall, it's been a solid way to earn extra income during tax season, just be prepared for some long days once things get busy!
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Saleem Vaziri
β’Thank you so much for sharing your experience over three seasons - that's really valuable insight! The point about learning tax concepts is actually a huge selling point for me. I'm pretty new to understanding taxes beyond the basics, so having a job that would educate me while I earn money sounds perfect. Quick question about the notebook tip - do you mean for keeping track of common customer issues, or more for your own reference on tax rules? I'm wondering if TurboTax has any restrictions on what kinds of notes we can keep while working with customer information.
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