22 Have you considered taking a loan from your 401k instead of a withdrawal? Most plans allow you to borrow up to 50% of your vested balance (up to $50,000). You'd have to pay interest, but you're paying it to yourself, and there's no penalty or taxes if you repay according to the terms (usually within 5 years).

11 I withdrew from my 401k last year and nobody warned me about Form 5329! Make sure you file this form with your taxes to report the early distribution, or you could face additional penalties. I got a nasty surprise letter from the IRS because I didn't include it.

Ok dumb question maybe but where exactly on the 1065 does the 1099-NEC income go? Is it line 1 (gross receipts) or somewhere else? Our business got about $45,000 in 1099-NEC income last year and I want to make sure it goes in the right spot.

Just wanted to chime in as someone who went through this exact confusion last year with my marketing consultancy LLC. The advice here is spot-on - the 1099-NEC issued to your partnership name gets reported on Form 1065, not on your personal returns. One thing I learned the hard way: make sure you're consistent with how you report the income category. If the 1099-NEC is for services (which it sounds like yours is), it should match how you categorize that same income in your books. Don't overthink it - the 1099 is just documentation that the IRS uses to verify you're reporting all your income. Your accountant should be able to handle this easily once they have your complete P&L. The key is that this income flows through the partnership return to your individual K-1s, so you and your partner will each report your share on your personal returns via Schedule E. Keep the physical 1099-NEC for your records, but you won't need to attach it anywhere.

Something that confused me when I first started my business was that "filing" and "paying" are sometimes different deadlines. You might need to FILE by a certain date but PAY by another date... or sometimes pay BEFORE you file (like with estimated taxes). The IRS website has a tax calendar that might help: https://www.irs.gov/tax-calendars

As someone who moved to the US and started a business here, I can relate to your confusion! The tax system is definitely complex. One thing that really helped me was understanding that business tax obligations go beyond just annual filing - there are also monthly employment tax deposits if you have employees, and various state and local tax requirements that vary by location. I'd recommend starting with the IRS Small Business and Self-Employed Tax Center (https://www.irs.gov/businesses/small-businesses-self-employed) - it has a good overview of different business types and their requirements. Also consider getting an EIN (Employer Identification Number) early even if you don't have employees yet, as many banks and vendors require it. The learning curve is steep, but once you understand the basics it becomes much more manageable. Don't hesitate to consult with a tax professional for your first year - the peace of mind is worth the cost!

Just wondering if anyone has gone through the whole process? What happened after you reported your employer? Did the IRS actually do anything? Did you get any money back?

Document EVERYTHING right now before you take any other steps. Take photos of your pay stubs, bank deposit records, the fraudulent W2, and your IRS transcript. Make copies and store them somewhere safe outside of work. You're absolutely right to be concerned - this is wage theft AND tax fraud. Your employer is likely keeping the difference between what they paid you and what they reported, plus they're probably not paying their fair share of employment taxes on your actual wages. Don't let fear of losing your job stop you from reporting this. What they're doing is illegal and they're stealing from you AND the government. You have legal protections against retaliation, and frankly, do you really want to keep working for someone who's been stealing from you for over a year? File that Form 4852 and Form 3949-A as soon as possible. The longer you wait, the harder it gets to fix. You deserve every penny of that missing income and the correct tax treatment.

Has anyone considered the impact on the nephews' capital accounts in the partnership? Changing the Section 754 valuation will affect their capital interests, which could have implications beyond just this sale.

I've dealt with similar Section 754 valuation issues and want to emphasize the importance of timing your correction properly. Since you mention another building sale is pending, making the prior period adjustment before that sale closes would be ideal - it demonstrates the correction isn't driven by hindsight but by legitimate valuation concerns. One practical consideration: have you reviewed the partnership agreement to see if there are any provisions about how basis adjustments should be handled or allocated among partners? Some agreements have specific language about Section 754 elections that could affect your correction approach. Also, while the prior period adjustment through equity seems like the cleanest approach, consider whether your state has any specific requirements for partnership accounting changes. Some states require additional filings or notifications when partnership capital accounts are adjusted significantly. The $800,000 undervaluation you mentioned is substantial, so documenting your methodology thoroughly will be crucial. I'd suggest preparing a side-by-side comparison showing the original valuation method versus the corrected approach, along with supporting market data from 2022 that validates the higher valuation.