I went through this exact same nightmare last year! The frustration is real when you're trying to do everything yourself and can't find forms that don't actually exist as standalone documents. Just to add to what others have said - when you create your Statement A-QBI, make sure you're clear about what type of business you have. If you're in a service business like consulting, law, accounting, etc., there are income limits that affect how much QBI deduction your shareholders can claim. This impacts what information you need to include on the statement. Also, that "other form" you mentioned forgetting about - it might be Schedule K-1 preparation. The QBI information from your Statement A flows to the K-1s you give your shareholders, so they're connected. Just a thought in case that helps jog your memory! Don't give up - once you understand that it's not a form to download but information to compile, it gets much more manageable.

I'm glad to see this thread helped so many people! As someone who's dealt with S-corp filings for several years, I wanted to add one more tip that might save others some headaches. When you're preparing your Statement A-QBI, double-check that your "qualified business income" calculation excludes things like guaranteed payments to partners, Section 179 deductions, and any investment income. I see a lot of small business owners accidentally include items that shouldn't be part of QBI, which can cause issues down the line. Also, if you have employees, make sure your W-2 wages calculation only includes wages paid for work related to the qualified business income activities. If you have non-QBI activities, you might need to allocate the wages appropriately. The IRS has some decent worksheets in the Instructions for Form 8995 that can help you organize the information even if you're not using that specific form. Sometimes looking at related forms' instructions can clarify what needs to go in your statements.

Has anyone actually calculated their insolvency using the worksheet in Publication 4681? I'm trying to do this now and I'm confused about what counts as an asset. Do I include things like furniture and clothing? What about my laptop and phone?

Great thread! I went through this exact situation about 18 months ago with a cancelled credit card debt. One thing I'd add that really helped me was creating a detailed timeline showing when each debt was incurred versus when the cancellation happened. For your student loans, definitely contact your servicer directly - they can usually provide a "payoff statement" or balance verification letter for any specific date going back several years. I found that student loan companies are actually pretty good about providing historical documentation since they deal with tax-related requests frequently. Also, don't forget to include ALL liabilities - not just the obvious ones like loans. If you had any unpaid medical bills, credit card balances, or even money owed to family members at the time, those count toward proving insolvency. I initially missed some smaller debts and had to revise my worksheet. One last tip: when you send your response to the IRS, include a cover letter that clearly explains what you're providing and references the specific notice number. This helps ensure your documentation gets properly matched to your case. Good luck!

Just thinking outside the box - could you set up a separate Venmo/Cash App account specifically for work tips? Maybe label it clearly like "[Company Name] Valet Tips" so it's obvious it's not your personal money? Might make the accounting cleaner at least.

I work for a tax preparation firm and see situations like this regularly. You're absolutely right to be concerned - this setup is creating a significant tax liability risk for you personally. The fundamental problem is that payment apps report based on the account holder's SSN, regardless of the actual ownership of the funds. So you'll likely receive 1099-K forms showing the full amount of tips as YOUR income, even though most of it gets distributed to others. Here's what I recommend: First, immediately start documenting EVERYTHING. Create a spreadsheet tracking every digital tip received, the date, amount, and exactly how much went to which valet (including yourself). Keep screenshots of all transactions and payouts. This documentation will be crucial if the IRS questions anything. Second, you need to have a serious conversation with your employer about restructuring this arrangement. Ideally, the company should either set up a business account for receiving digital tips OR formally document that you're acting as their agent in collecting these payments. Without proper documentation from your employer, you could be personally liable for taxes on money that was never really yours. The $600 reporting threshold mentioned in other comments makes this even more urgent. With $4000/month flowing through your accounts, you're looking at potentially owing taxes on $48,000+ annually that you never actually kept. Don't wait on this - the longer the current system continues, the bigger the potential tax problem becomes.

Has anyone tried using TurboTax's Electronic Funds Withdrawal option with Marcus instead of the direct account connection? I've been reading that sometimes this method works better for online banks because it processes differently in the system.

I used Marcus to pay my taxes through TurboTax last year and had a similar experience to what others have mentioned - it took about 4-5 days to process, which was nerve-wracking at first. The payment did go through successfully, but I learned a few things that might help you. First, make sure you have sufficient funds in your account with a little buffer, as Marcus sometimes puts a temporary hold on the full amount while processing. Second, I noticed that Marcus sends email notifications for large transfers like tax payments, so keep an eye on your email for any alerts. If you're really worried about it, you might want to call Marcus customer service and give them a heads up about the upcoming tax payment. When I did this, they noted it on my account which seemed to help with the processing. Their customer service is actually pretty good compared to other online banks. The Electronic Funds Withdrawal option that Zara mentioned is definitely worth considering for next year - I've heard good things about it being more reliable with online banks.

Quick question - does your cousin use the apartment at all? If she stays there when visiting, it might qualify as a second home for mortgage interest deductions if there's a loan on it.

Your cousin should also consider whether she needs to report this on her state tax return if she lives in a state with income tax. Some states have their own foreign asset reporting requirements that are separate from federal obligations. Also, since the apartment was gifted to her, she should try to get documentation of the property's fair market value at the time she received it. This will be important for calculating capital gains if she ever sells the property. The basis for gifted property is usually the donor's basis, but having the valuation at the time of gift can help with tax planning. One more thing - if she hasn't been reporting this property and decides to come into compliance, she should definitely document that the non-reporting was non-willful (meaning she didn't know about the requirements). This distinction is crucial for penalty mitigation under programs like the Streamlined Filing Compliance Procedures that others have mentioned.