My company actually blocks any W-4 changes after November 15th because they say too many people try to go exempt for December bonuses. Is this even legal for them to do? Anyone know a workaround?

Just wanted to share my experience since I was in almost the exact same situation last year! I had already paid about $18K in federal taxes and was stressing about my December overtime getting eaten up by withholding. What I ended up doing was pulling out my prior year tax return and checking line 24 (total tax). My total tax liability for the previous year was $16,800, and since I'd already paid more than that in withholding, I was in the "safe harbor" zone. I submitted a new W-4 with additional withholding of $0 and increased my allowances significantly for my last few paychecks. The key thing is you're NOT claiming exempt - you're just adjusting your withholding to a more accurate amount. I kept enough withholding to cover what I thought I'd actually owe, but way less than the automatic calculation that assumes you make overtime pay all year long. Ended up getting about $800 more in my December checks and still got a small refund when I filed. The peace of mind was worth it - no penalties, no issues with the IRS. Just make sure you're still withholding something reasonable, not going completely exempt.

My amended return took exactly 18 weeks and 3 days to process last year. The IRS received it on March 7, 2023, and I received my refund on July 14, 2023. The system updated at the 6-week mark, the 12-week mark, and then finally at the 18-week mark. The refund was $4,327 less $43.21 in interest penalties for a net of $4,283.79. For business planning purposes, I'd recommend setting a calendar reminder for Week 16 to check the status again, and don't make any financial commitments requiring this money until Week 20.

I'm going through something similar right now - filed my amended return about 8 weeks ago for some missed business expenses I discovered. The waiting is definitely nerve-wracking when you're trying to plan business purchases! From what I've learned lurking in various tax forums, the 16-20 week timeline seems pretty accurate these days. One thing that's helped me is setting up a monthly calendar reminder to check the "Where's My Amended Return" tool rather than obsessively checking it weekly. Also, I've started looking into alternative financing options for my business needs just in case the refund takes longer than expected. It's frustrating, but having a backup plan has given me some peace of mind while I wait for the IRS to do their thing.

Has anyone considered the tax implications for the contractor in this arrangement? If they own the vehicle but you're paying all the expenses, technically they're receiving a benefit (maintained vehicle, fuel) without counting it as income. This might be problematic for them during an audit.

This is a really complex situation that highlights why proper documentation is so crucial. Based on what others have shared here, it sounds like you have a few viable options: 1. **Deduct actual expenses**: As confirmed by the IRS agent someone spoke with, you can deduct the gas and maintenance costs you're paying as business expenses on Schedule C, even without owning the vehicle. Just keep meticulous records. 2. **Restructure the arrangement**: Either lease the vehicle formally from the contractor or purchase it for a nominal amount (as suggested). This gives you cleaner deduction options. 3. **Address the tax implications for both parties**: The point about the contractor potentially receiving unreported benefits is important. You might want to discuss how they're handling this on their end to avoid any conflicts during audits. I'd strongly recommend getting professional tax advice specific to your situation, whether through one of the services mentioned here or a local CPA. The potential savings on $350-400 weekly in expenses could be substantial, but you want to make sure everything is bulletproof from a compliance standpoint. Also consider keeping a detailed mileage log even if you're not using the standard mileage rate - it helps demonstrate the business purpose and percentage of business use for all those expenses.

Welcome to the club bestie 💅 been dealing with this for weeks. The IRS systems are held together with duct tape and prayers at this point lmaooo

Have you tried clearing your browser cache and cookies? Sometimes the IRS website gets stuck with old session data. Also make sure you're using the refund amount from line 35a of your 1040 (not what you expect to get after withholdings). I had this exact issue last year and it turned out I was using the wrong amount from my return.

Based on your situation, you definitely need to file Form 1065 and K-1s even with zero revenue. I went through this exact scenario two years ago with my consulting partnership. A few key points from my experience: 1. **Filing is mandatory** - The IRS requires partnership returns regardless of income level, and the penalties can add up quickly ($195 per partner per month). 2. **Your startup expenses are valuable** - Don't overlook deductions for business formation costs, professional fees, software subscriptions, etc. These can create losses that flow through to your personal returns. 3. **Extension strategy** - If you've missed the March 15 deadline, file Form 7004 immediately for an extension to September 15. Even if the extension request is late, it stops additional penalties from accumulating. 4. **Software options** - I used TaxAct Business which handled our simple partnership return well for around $150. The key is making sure it properly allocates expenses between partners according to your agreement. Don't dissolve the business just because of first-year filing complexity. Once you get through this initial return, future years become much more routine. The infrastructure you've built has value, and these startup costs will benefit you on your taxes. Feel free to ask if you need clarification on any specific expenses or allocation issues!

I'm in a very similar situation - first-year partnership with startup expenses but no revenue yet. Reading through all these responses has been incredibly helpful! One thing I wanted to add from my research: if you're using business credit cards for expenses, make sure you're categorizing them properly for the 1065. I found that some expenses like website hosting can be deducted immediately, while others like certain setup costs might need to be capitalized and amortized. Also, since you mentioned you're familiar with accounting principles, you might want to double-check whether any of your software subscriptions qualify as Section 179 deductions versus regular business expenses. The treatment can be different and might affect your current year deductions. The penalty structure mentioned by others is real - I confirmed this when I spoke with a tax professional. Even with zero income, the IRS expects that partnership return, and $195 per partner per month adds up quickly if you're late. Good luck with your filing! It sounds like you have several solid software options to choose from based on the suggestions here.