Thanks everyone for the detailed explanations! This has been incredibly helpful. I'm dealing with a similar situation and want to make sure I understand the process correctly. From what I'm gathering, the key is to first determine whether the partnership has already applied the 163(j) limitation at their level. If they have, then the Box 13k amount is already limited and can be deducted directly on Schedule E without filing Form 8990. But if the partnership is exempt and passed through the full amount, then I need to evaluate whether my individual client qualifies for the small business exemption. One follow-up question: if my client does need to file Form 8990, does the Box 13k amount get entered on line 1a as "business interest expense" or does it go somewhere else on the form since it's coming from a pass-through entity? I want to make sure I'm not double-counting or missing anything in the calculation. Also, for the gross receipts test, when you say "businesses under common control" - does this include if my client owns rental properties through separate LLCs? The aggregation rules can get pretty complex.

This is exactly the kind of complex partnership issue that trips up so many practitioners! I've been dealing with similar K-1 Box 13k situations lately, and the key insight that helped me was realizing that the partnership's treatment determines your next steps. Here's my practical approach: First, look for any statement or attachment that came with the K-1 - partnerships are supposed to indicate whether they've applied the 163(j) limitation. If they have, you're done - just deduct the $92,300 on Schedule E. If there's no clear indication, I'd recommend calling the partnership's preparer directly rather than guessing. For the gross receipts test, remember it's a 3-year average of ALL businesses under common control. So if your client has multiple entities or rental properties, you'll need to aggregate everything. The $27 million threshold applies to the combined total. One red flag I've learned to watch for: sometimes partnerships will put a note in Box 20 with code AE indicating they're exempt, but that doesn't mean your individual client is automatically exempt too. You still need to run the gross receipts test at the individual level. The good news is that once you work through this process a few times, the pattern becomes much clearer. Don't hesitate to reach out to the partnership if you need clarification - they should have this information readily available since other partners are probably asking the same questions!

When I filed my 9465 last year they also made me fill out a 433-F financial statement even though I owed less than $25k. They said it was because I had a history of not filing on time. So just be ready that they might ask for more documentation depending on your specific tax history.

I went through this exact situation last year and totally understand the stress! Here are the key things that helped me get my 9465 approved on the first try: **Most Important Sections:** - Lines 1-8: Your basic info (must match your tax return exactly) - Line 9: Monthly payment amount (be realistic - propose what you can actually afford) - Line 11a: I highly recommend direct debit - shows you're committed - Line 12: Make sure to sign and date it! **Pro Tips:** 1. Calculate a payment amount that pays off your debt in 72 months or less if possible 2. If you can swing a larger first payment, include that - it shows good faith 3. Double-check that your SSN matches your return exactly 4. Keep copies of everything you submit The IRS is actually pretty reasonable with payment plans if you're honest about what you can afford. Don't lowball the monthly amount thinking you're gaming the system - they'll just reject it and you'll have to start over. Better to be realistic upfront. You've got this! The form looks scarier than it actually is once you break it down section by section.

I just want to echo what everyone else is saying here - you're definitely not in trouble! I had this exact same panic when I overpaid my 941 taxes by about $600 last year for my small photography business. What really helped me was understanding that the IRS computer systems are actually designed to handle these discrepancies automatically. When your W3 shows a lower liability than what you've already paid, their system flags it as an overpayment credit, not as an error or audit risk. From a practical standpoint, I'd strongly recommend going with the credit-to-future-quarters option rather than requesting a refund. I made the mistake of requesting a refund initially and waited 4 months to get my money back. Meanwhile, my friend who applied her overpayment as a credit had it processed in just a few weeks and didn't have to worry about making her next quarterly payment. The 941-X form is pretty straightforward - just include a brief explanation like "Calculation error resulted in overpayment of employment taxes" and you should be good to go. Keep copies of everything and don't stress about it! This happens to small business owners all the time, especially when we're trying to be extra careful with our calculations.

I completely understand your concern, but you can breathe easy! Overpaying your 940 and 941 taxes is actually a pretty common occurrence for small business owners, and the IRS handles these situations routinely without any red flags or penalties. When your W3 summary shows a lower amount than what you've already paid, the IRS will simply recognize this as an overpayment on your account. You have a couple of straightforward options to resolve this: 1. **Apply as credit to future quarters** (recommended): File Form 941-X and choose to apply the overpayment to your next quarter's tax liability. This typically processes in 3-4 weeks and means you won't need to make a full payment next quarter. 2. **Request a refund**: Also done through Form 941-X, but expect 8-12 weeks processing time (sometimes longer). For most small businesses, option 1 is the way to go - it's faster, helps with cash flow planning, and eliminates the uncertainty of waiting for a refund check. The key is to file the 941-X form promptly with a simple explanation like "overpayment due to calculation error." Keep good records of everything, but don't overthink it. The IRS much prefers overpayments to underpayments, and their systems are designed to handle exactly this type of situation. You're being responsible by catching and correcting this yourself!

I'd recommend attaching Form 433-F (Collection Information Statement) along with your 9465 if you're requesting a payment plan for a larger amount or if you can't afford what would normally be the minimum payment. This form shows your income, expenses, assets, and debts. It's extra paperwork but it helps prove to the IRS what you can actually afford to pay each month and increases your chances of getting approved for lower monthly payments if you're truly in a financial hardship situation.

One thing I wish someone had told me when I filled out my Form 9465 is to double-check your Social Security Number and the tax year you're requesting the installment agreement for. I made a simple typo in my SSN and it delayed my application by weeks while they tried to match it to my account. Also, if you're married filing jointly, make sure you're clear about whether both spouses are requesting the installment agreement or just one of you. This was confusing for me since my spouse and I file jointly but only I was responsible for the additional tax owed. The IRS website has a payment estimator tool that can help you figure out what monthly payment amount to propose, but honestly the explanations here about the 72-month rule and adding buffer for interest are really helpful. Good luck with your application!

3 Does anyone know if donating stuff instead of money makes any difference tax-wise? I have a bunch of clothes and furniture I could donate to Goodwill instead of giving cash to charities.

One thing to consider is using a donor-advised fund (DAF) if you're planning to give regularly. You can contribute a larger lump sum to the DAF in a year when you itemize (like if you have higher medical expenses or other deductions), get the immediate tax deduction, then distribute the funds to your chosen charities over multiple years. For example, you could contribute $3,000-4,000 to a DAF in a year when itemizing makes sense, then recommend grants of $1,300 annually to your preferred charities. This gives you more control over the timing of your tax deduction while still supporting the causes you care about consistently. Many brokerage firms like Fidelity, Vanguard, and Schwab offer DAFs with low minimum contributions and fees. Just another strategy to consider as your giving grows over time!