has anyone actually received their ertc refund yet??? filed 941-x last february and still nothing. getting worried the money will never come at this point :

I can confirm what others have said - your accountant is definitely wrong about claiming ERTC on current year taxes. As a small business owner who went through this process last year, you absolutely must file Form 941-X amendments for each qualifying quarter. I made the mistake of trusting my original CPA's advice (similar to yours) and almost filed incorrectly. The ERTC is specifically tied to payroll taxes from those pandemic quarters, not income taxes. There's no mechanism in the tax code to shift it to current year filing. My advice: find a new accountant who understands ERTC rules properly, or at minimum get a second opinion from someone who specializes in employment tax credits. The penalties for filing incorrectly could be severe, and you don't want to deal with that headache later. The extra paperwork for proper 941-X filings is worth doing it right the first time.

This is a tricky situation that requires careful analysis of the original intent and documentation. Before deciding whether to amend, I'd recommend taking these steps: 1. **Document the original intent**: Gather any contemporaneous evidence (emails, meeting minutes, partnership agreement provisions) that shows what the partners intended when the funds were contributed. 2. **Review profit allocation impacts**: Check if the capital contributions changed profit/loss allocations among partners. If so, reclassifying as loans could trigger Section 707(a)(2)(A) disguised payment issues. 3. **Consider the partners' tax positions**: If any partners used the increased basis from these "contributions" to deduct losses on their individual returns, they might need to amend as well. 4. **Evaluate documentation requirements**: For proper loan classification, you'll need evidence of: repayment terms, interest rates, definite maturity dates, and an actual debtor-creditor relationship. If you can't establish clear loan intent from the beginning, it might be safer to leave the classification as capital contributions and treat the 2025 repayments as capital distributions - though this has its own tax implications to consider. The key is consistency and having documentation that supports whatever position you take. Amending without strong supporting evidence could create more problems than it solves.

Brian, I've been through a similar situation and here's what I learned the hard way: the timing of when you make this decision matters a lot more than you might think. If you're going to amend, you need to do it consistently for both years and have a rock-solid story about the original intent. The IRS doesn't like it when taxpayers change their position on fundamental classifications like this, especially when it seems driven by tax convenience rather than correcting a genuine error. A few practical considerations: **Before amending, ask yourself:** - Did the partnership agreement contemplate partner loans at all? - Were these funds truly intended to be repaid from the start, or is this just buyer's remorse about the capital treatment? - Do you have ANY contemporaneous documentation of loan intent? **If you do amend:** - File both amended returns simultaneously with identical explanations - Include a detailed statement explaining the error and providing evidence of original loan intent - Be prepared for potential IRS scrutiny - they may want to see the documentation that supports the reclassification **Alternative approach:** Consider leaving the past returns alone and properly documenting any future similar transactions as loans. Sometimes the cure is worse than the disease, especially if the supporting documentation is thin. The partners may not love hearing this, but their lack of proper documentation upfront created this mess. Don't let their after-the-fact preferences drive you into a position that's hard to defend.

Pro tip: bookmark the direct transcript link once you find it! The path is usually irs.gov -> Tools -> Get Your Tax Record -> Get Transcript Online. After ID.me verification, it takes you straight to the transcript selection page. Way faster than navigating through the main site every time.

Another thing that helped me - if you're getting stuck after ID.me login, try logging out completely and starting fresh. Sometimes the session gets weird and you end up in limbo. Also check that you're going to the official IRS.gov site and not some other tax site that might redirect you elsewhere.

Great thread! I've been struggling with the same issues and this discussion has been incredibly helpful. One thing I wanted to add based on my experience last year - make sure you're also considering the timing of when you moved funds between exchanges. I had a situation where I transferred a large amount from Binance to KuCoin in the middle of the year, and for a brief period, the same funds were technically "in transit" but still showing on both platforms. I almost double-counted that amount when calculating my maximum balance. The key is to track the actual settled balances, not pending transfers. Also, if you're using any foreign lending platforms (like BlockFi when it was operational, or current platforms like Nexo), those definitely count as foreign financial accounts for FBAR purposes if they're not US-based. I learned this the hard way when my tax preparer caught it during review. The monthly screenshot approach mentioned earlier is genius - I wish I had thought of that instead of trying to reconstruct everything from transaction histories at year-end!

As someone who went through this exact nightmare last year, I can't stress enough how important it is to get professional help if you're dealing with multiple foreign exchanges. I tried to handle everything myself initially and made several mistakes that could have resulted in penalties. The key things I learned: First, the $10k threshold is indeed based on aggregate maximum values across ALL foreign accounts, not simultaneous balances. Second, you need to be really careful about what constitutes a "foreign financial account" - it's not just exchanges, but also lending platforms, staking services, and even some DeFi protocols depending on where they're incorporated. One thing that saved me was discovering that some exchanges provide annual statements specifically designed for tax reporting. Binance, for example, has a tax reporting section where you can generate statements that show your maximum balance for the year. Not all exchanges offer this, but it's worth checking before you spend hours reconstructing your records. Also, don't forget that beyond FBAR, if your foreign crypto assets exceed certain thresholds ($50k for single filers), you may also need to file Form 8938 (FATCA reporting) with your regular tax return. The thresholds and requirements are different from FBAR, so you could end up needing both forms. The good news is that once you set up a proper tracking system, it becomes much more manageable in subsequent years. But for your first year dealing with foreign exchanges, seriously consider getting help from a tax professional who understands crypto - it's worth the peace of mind.

I'm dealing with a similar situation right now as a new partnership member who might need to sell my interest soon due to a job relocation. Reading through all these responses has been incredibly helpful, but I'm curious about timing - when exactly should I request the section 751 information from the partnership? Should I wait until after the sale is complete, or is it better to get this information beforehand so my buyer and I can factor it into the sale price negotiations? I'm worried that if there's significant ordinary income from hot assets, it could affect what someone would be willing to pay for my partnership interest. Also, does anyone know if there are standard industry practices for how partnerships should calculate and provide this information, or is it really just a free-for-all depending on how organized the partnership's accounting team is?

Based on my experience as a tax professional who's handled numerous partnership interest sales, I can confirm that your K-1 will NOT automatically report the section 751 gain from selling your partnership interest. The K-1 reports your distributive share of partnership income/loss through the sale date, but the gain calculation from transferring your actual ownership interest is separate. Your accountant will need to perform a detailed analysis comparing your adjusted basis in the partnership interest against the sale proceeds, then allocate portions between ordinary income (section 751 hot assets) and capital gain. This requires information about unrealized receivables, substantially appreciated inventory, and any special basis adjustments - data that should come from the partnership but often requires specific requests. Given your 35% interest, this could be a substantial calculation. I'd recommend requesting the section 751 information from your partnership immediately, as some partnerships are slow to respond or may need time to compile the necessary valuations. Don't wait until you get your K-1 - start this process now so your accountant has everything needed to properly complete Forms 4797 and Schedule D when tax time comes.