PSA: ALWAYS KEEP COPIES OF YOUR TAX DOCS FOR AT LEAST 3 YEARS!!!

You can also try calling the IRS Taxpayer Assistance Center at 1-877-777-4778 if you're having trouble with the online account verification. They can mail you the transcript or help you access your account over the phone. It might take a few weeks to get it by mail, but it's a reliable backup option when the online system isn't working for you.

I've been importing anime merchandise from Japan for about 3 years now and can confirm the $800 threshold is correct. One thing I learned the hard way is that even if your order is exactly $800, customs can sometimes add shipping costs to the declared value depending on how the seller fills out the customs form. Also, be aware that some Japanese sellers will automatically split large orders into multiple packages to help you avoid duties, but others won't unless you specifically ask. Places like AmiAmi and HobbyLink Japan are usually pretty good about this if you contact their customer service before placing a big order. One more tip: if you do get hit with duties, keep track of what you paid because you can sometimes use it as a tax deduction if you're a content creator or run a business related to your imports.

One thing I'd add about the shipping costs being included in the declared value - it really depends on how the seller fills out the customs form. Japanese retailers like AmiAmi and Good Smile Company usually separate the merchandise value from shipping, but smaller sellers on platforms like Mercari might lump everything together. As for the tax deduction question - yes, I've successfully claimed import duties as business expenses for my anime review channel! Since you're creating content about the items you're importing, the IRS generally considers those legitimate business expenses. Just make sure to keep detailed records of what you purchased, how much you paid in duties, and how the items relate to your content creation. I use a simple spreadsheet to track everything throughout the year. The key is being able to demonstrate that the imports are "ordinary and necessary" for your business activities. Since anime merchandise is directly related to your review content, you should be in good shape. I'd recommend consulting with a tax professional if you're doing significant volume though - they can help you set up proper documentation procedures.

I went through this exact same confusion a few months ago! Like others mentioned, there's no specific "Federal Supporting Statement" form from the IRS - your accountant was probably using the term generically to mean "supporting documentation." Based on your description of unusual home office expenses, I'd definitely recommend Form 8275. I had a similar situation where I converted part of my basement into a temporary office space during COVID, and the square footage seemed high compared to typical home office deductions. Form 8275 let me proactively explain the situation with specific details about dates, business necessity, and calculations. The key is being thorough but clear - include why the space was needed, how long it was used, exact measurements, and how you calculated the deduction. This shows the IRS you're being transparent rather than trying to hide anything. Much better than having them discover it during review and wonder why you didn't explain it upfront!

I completely understand your frustration! I went through this exact same wild goose chase last year. Like everyone else has mentioned, there's no actual "Federal Supporting Statement" form from the IRS - it's just a generic term some tax preparers use. For your situation, Form 8275 is definitely the way to go. I had unusual consulting expenses that looked odd on my Schedule C, and using Form 8275 to proactively explain them saved me from getting a follow-up letter from the IRS later. One tip that really helped me: when filling out Form 8275, be specific but concise. Don't over-explain, but give enough detail that an IRS reviewer can understand why your deduction is legitimate without having to dig deeper. Include the business purpose, time period, and how you calculated the amounts. The whole experience taught me that being transparent upfront with the IRS is way better than having them discover something unusual during review and wonder why you didn't explain it beforehand!

Just an FYI - don't forget about filing deadlines for partnerships! Form 1065 is due March 15, not April 15 like personal returns. This catches a lot of new partnerships by surprise. If you miss the deadline, each partner can be penalized $210 per month for each month the return is late, up to 12 months.

Just wanted to add that you should also make sure you have proper documentation for those uneven business expenses you mentioned. The IRS likes to see clear records showing which partner paid for what, especially when expenses aren't split 50/50. Keep copies of receipts, bank statements, and maybe even a simple spreadsheet tracking who paid for what and when. Also, since you're keeping the profits in the business account for future marketing expenses, make sure you're treating that business account properly - don't mix personal and business expenses. It'll make next year's taxes much cleaner and help protect your LLC status if there are ever any legal issues down the road.

Has anyone had issues with sales tax being included on their 1099-K? My platform reports the full transaction amount including sales tax on the 1099-K, but the sales tax isn't actually my income since I remit it to the state. Should I still report the full 1099-K amount on Schedule C and then deduct the sales tax portion as an expense?

I went through this exact same situation last year with my consulting business. I had multiple 1099-Ks from different payment platforms totaling about $15K, but my actual business income was much higher since I also received direct payments and checks. The key thing to remember is that you report your TRUE total business income on Schedule C Line 1 (gross receipts), not just what's on the 1099-Ks. The 1099-K is just third-party verification of some of your payments - it doesn't limit what you can report as income. When you enter the 1099-K information in your tax software, it's mainly for IRS matching purposes. The software should automatically include those amounts in your Schedule C totals rather than creating separate income categories. Just make sure your Schedule C gross receipts line reflects ALL your business income for the year, including the $9,500 from that 1099-K plus everything else you earned from your reselling business. One tip: keep detailed records showing how your 1099-K amounts tie into your total reported income. This helps if the IRS ever questions the numbers during their automated matching process.