Daniel, you've received incredibly thorough and consistent guidance throughout this entire thread! As a newcomer to this community, I'm really impressed by how everyone has clearly explained that Box 20 Code AG is purely informational and won't impact your personal tax return at all. That $3.2 million figure would definitely be concerning to see on your first S-Corp K-1 without context! But as everyone has confirmed, it's simply your 25% proportional share of the business's gross receipts that the IRS uses to track whether your S-Corp qualifies for simplified accounting methods under Section 448(c). It's administrative compliance data - not additional income you need to worry about. For your tax preparation this weekend, the unanimous advice here is spot-on: focus on the K-1 boxes that actually impact your personal return (income, deductions, credits in Boxes 1-13) while treating informational codes like AG as "enter if your software asks, but it won't change your tax calculation." I particularly like the suggestions about keeping a reference sheet explaining what each code means for your specific K-1. This thread itself would make an excellent reference document to save for next year! Welcome to S-Corp ownership and congratulations on joining the family business! The first year definitely has the steepest learning curve, but you're asking exactly the right questions and getting fantastic community support. Future tax seasons will be much more manageable once you understand your K-1 pattern.

Daniel, you've received absolutely excellent and consistent advice throughout this entire thread! As someone new to this community, I'm really impressed by how thoroughly everyone has explained that Box 20 Code AG is purely informational and won't impact your personal tax return at all. That $3.2 million figure would definitely be startling to see on your first S-Corp K-1! But as everyone has confirmed multiple times, it's simply your 25% proportional share of the business's gross receipts that the IRS uses for Section 448(c) compliance tracking. It's administrative data - not additional income you need to report or worry about. For your weekend tax preparation, the consensus advice is perfect: focus on the K-1 boxes that actually generate income, deductions, or credits for your personal return (typically Boxes 1-13) while treating informational codes like AG as "enter if your software asks, but it won't affect your tax calculation." I love all the practical suggestions here about creating a reference sheet for future years and saving this thread as a resource. The learning curve for S-Corp taxation feels overwhelming initially, but you're asking exactly the right questions and getting fantastic community guidance. Welcome to business ownership and congratulations on joining the family business! Once you get through this first year and understand how your specific K-1 flows through to your personal return, future tax seasons will be much more routine. Good luck with your taxes this weekend!

Make sure your child has a Social Security number before you file! We had our baby in December and the card hadn't arrived by filing time. Had to delay our return and it was a whole mess. Also remember that the year you give birth (even if it's December 31st) you get the full year's worth of child tax credits!

Congratulations on your new baby! Here are a few additional things to keep in mind that haven't been mentioned yet: 1. **Medical Expenses** - Don't forget about the medical expenses related to your baby's birth and first-year care. If your total medical expenses (including birth costs, pediatrician visits, etc.) exceed 7.5% of your adjusted gross income, you can deduct the amount over that threshold. 2. **State Tax Credits** - Check if your state offers additional child tax credits or deductions. Many states have their own versions that can add to your refund. 3. **Health Savings Account (HSA)** - If you have an HSA, you can use it tax-free for your child's medical expenses. Also, having a baby qualifies as a life event that allows you to change your HSA contribution mid-year. 4. **Head of Household Filing Status** - While you mentioned filing jointly (which is usually best), just double-check that this is indeed more beneficial than other filing statuses given your specific income situation. The tax software should catch most of these, but it's good to go in knowing what to look for. Make sure you keep all receipts for childcare, medical expenses, and any baby-related purchases that might be deductible!

One thing nobody has mentioned yet is the real estate professional status. If you qualify as a real estate professional (750+ hours in real estate activities and more than half your working time), you can treat ALL your real estate activities as nonpassive if you materially participate in them. That might be what your friend is doing - if they or their spouse qualifies as a real estate professional, they can deduct those losses against other income. It's completely legitimate if they meet the requirements.

Has anyone used grouping elections for their K1s? I've heard this can help with meeting material participation tests by combining multiple activities.

I'm dealing with a similar situation right now! Filed my extension but completely forgot about the October deadline. One thing I learned from calling the IRS (after waiting on hold for literally 3 hours) is that you can also request penalty relief for "reasonable cause" if you have a valid reason for the delay - like serious illness, natural disaster, or other circumstances beyond your control. Even if you don't qualify for First-Time Penalty Abatement, it's worth documenting any legitimate reasons you had for missing the deadline. The IRS agent I spoke with said they evaluate each case individually for reasonable cause relief. Also, make sure you include Form 4868 with your late return if you didn't file an extension originally, or attach a copy of your extension if you did file one. This shows the IRS your filing history and can help with penalty calculations. Good luck getting this sorted out! The stress is real but it sounds like you have a solid plan to get caught up.

Just wanted to share my experience as someone who went through this exact same situation two years ago. I also missed my extended deadline and was terrified about the penalties. Here's what I learned: First, definitely pay as much as you can immediately - even if it's just the base tax amount. The failure-to-pay penalty stops accruing on whatever you've paid, so every dollar you pay now saves you 0.5% per month going forward. Second, the postmark date absolutely counts as your filing date, so get it in the mail tomorrow with certified mail. I was paranoid about this and actually drove to the post office to hand it to the clerk and watch them postmark it. Third, the First-Time Penalty Abatement program is real and it works! I got about $800 in penalties removed. The key is waiting for their notice (took about 8 weeks for me) and then calling the number on the notice to request FTA. Have your tax transcripts ready when you call - they'll ask about your filing history for the previous 3 years. One thing nobody mentioned yet: if you're really strapped for cash right now, you can file the return without full payment and request an installment agreement using Form 9465. Yes, you'll still owe penalties and interest, but it prevents things from getting worse and gives you breathing room. The IRS is surprisingly reasonable about payment plans. You're going to get through this! It feels overwhelming now, but once you file and start the process, it becomes much more manageable.

A heads up from someone who just went through this - make sure you're using the correct tax forms for the specific years you're filing! The 1099-NEC didn't exist before 2020, so for 2019 and earlier, non-employee compensation was reported on the 1099-MISC (Box 7). Also, don't forget to file state taxes too if your state has income tax. Those deadlines for claiming refunds might be different from federal.

I went through something very similar when I was catching up on 5 years of unfiled returns. The good news is that you're overthinking the EIN issue - as others have mentioned, you don't need those employer identification numbers when filing your personal tax returns. Since you have your tax transcripts with the income amounts, you're actually in a pretty good position. Focus on accurately reporting all the income shown on those transcripts using Schedule C for your self-employment years (2018-2019). The partially redacted EINs won't affect your ability to file. One thing I learned the hard way: start with the most recent years first if you're owed refunds, since there's typically a 3-year window to claim them. For 2018, you might be running out of time to get that refund if you're owed one. Also, don't forget about estimated tax penalties - you'll likely owe those for the self-employment years, but filing late is still much better than not filing at all. The IRS is actually pretty understanding when people are making a genuine effort to get compliant. You've got this!