Has anyone here dealt with reporting suspended EBIE on partner tax returns when there's a partial disposition of a partnership interest? The regulations aren't super clear on how to allocate the suspended EBIE in that scenario.

This is a complex area that I've been wrestling with in my practice as well. One thing to keep in mind is that the proposed regulations under 163(j) specifically address the treatment of suspended EBIE when partnerships change their election status. Even though Partnership A is making the 163(j) election going forward, the suspended EBIE from 2018 and 2019 doesn't just disappear. The key is understanding that this suspended amount is tracked at the partner level, not the partnership level. Each partner maintains their own "bucket" of suspended EBIE from each partnership. Beyond the CARES Act relief allowing 50% deduction of 2019 EBIE, the remaining suspended amounts will indeed carry forward until one of the triggering events occurs - either the partnership generates excess taxable income/excess business interest income in future years, or the partner disposes of their interest. What's interesting about your situation is that even with the 163(j) election, Partnership A could still potentially generate excess amounts in future years if its income profile changes significantly. The election doesn't permanently eliminate this possibility, it just makes it less likely given the trade-off you're making with depreciation periods. I'd recommend keeping detailed records of each partner's suspended EBIE by year and partnership, as this will be crucial for proper reporting when disposition or other triggering events eventually occur.

Def been thru this last yr. The 846 date is NOT when u get the check. IRS sends the $ info to Treasury on that date, then Treasury prints checks in batches 2x/week. Depending on when ur 846 hits their schedule, could be 1-10 days b4 it's actually printed. Then USPS takes 3-5 biz days. Pro tip: DO NOT CALL the regular IRS # to check status - complete waste of time. They'll just read the same transcript info u already have. Ask me how I know 🙄

Hey there! I totally understand your stress - been in this exact situation before! 😅 Just to add to what everyone else has shared, I went through this nightmare in 2022. My 846 date was March 3rd, and I actually received my check on March 17th - so exactly 2 weeks later. The key thing to remember is that the 846 date triggers a whole chain of events: IRS sends payment instructions to Treasury → Treasury prints the check → USPS delivers it. Each step takes time. For planning with your contractors, I'd honestly tell them to expect payment around March 20th to be safe. Also, definitely sign up for USPS Informed Delivery like Savannah mentioned - it was a lifesaver for my anxiety! You'll literally see a photo of your check in your email before it hits your mailbox. Hang in there, the money WILL come! 💪

im in the exact same situation. filed on jan 22, accepted jan 23, then yesterday saw it flip to pending and back to accepted. From what i can gather online this is totally normal and just means your return is moving through their process. as long as it went back to accepted u should be fine

I've been through this exact same situation multiple times over the years. The status flip from Accepted to Pending and back is actually a good sign - it means your return is actively being processed rather than just sitting in a queue. When the estimated refund date disappears, it's usually because the IRS system is recalculating timing based on current processing volumes. Since you mentioned you claimed EIC, that explains everything - those returns are held until mid-February regardless of when you file due to the PATH Act. Your 21-day processing window basically starts around February 15th, so you're looking at early March for your refund. The status changes you're seeing are just the system preparing your return for the next phase of processing now that the PATH Act hold period is ending. Nothing to worry about at all!

I'm dealing with a very similar situation right now! My business partner and I also completely missed filing our 1065 while our personal taxes were handled correctly. One thing I learned from my CPA is that you should also check if your partnership has any automatic extension that might still be in effect. If you filed Form 7004 for an extension on the partnership return (even if you forgot you did), you might have until September 15th instead of the original March deadline. Also, when you draft your reasonable cause letter, be very specific about the miscommunication with your tax preparer. The IRS tends to be more lenient when there's a clear third-party error involved, especially if you can document that you gave the preparer all the necessary information and had a reasonable expectation that they would handle all required filings. Keep all your communications with the original tax preparation service - emails, receipts, any written agreements about what services they were supposed to provide. This documentation could be crucial for your penalty abatement request.

I went through this exact situation two years ago with my wife's consulting partnership. Here's what I learned that might help: First, don't panic - you're not alone and this is fixable. The IRS actually sees this type of error fairly regularly, especially with small partnerships where the income flows through to personal returns. Beyond what others have mentioned about filing the late 1065 and requesting penalty abatement, I'd suggest a few additional steps: 1. Contact your tax preparer immediately and get a written acknowledgment of their error. This will strengthen your reasonable cause argument significantly. Many preparers carry errors and omissions insurance and may even cover any penalties that result from their mistake. 2. File the 1065 as soon as possible, but take time to do it correctly. Double-check that your partnership basis calculations are accurate and that the K-1s reconcile perfectly with what you reported on your personal return. 3. When writing your reasonable cause letter, include a timeline showing your good faith efforts to comply (hiring a professional, providing all necessary documents, etc.) and emphasize that this was an isolated incident in an otherwise clean compliance history. 4. Consider having a different tax professional review everything before filing to catch any other potential issues. The penalties can add up quickly ($220 per partner per month), but with proper documentation of the preparer error and your compliance history, you have a strong case for full abatement. I got mine completely waived using this approach.

dont trust wmr its trash. transcripts are the only way to know for sure. or use that taxr thing everyone keeps talking about idk

Same situation here! Cycle 05 with TurboTax fees and Chime. PATH message disappeared from WMR on Tuesday for me. From what I've read, once PATH is gone and you're weekly cycle, the 846 should post on your next transcript update day. Friday mornings are usually when we see the magic happen! 🤞 Keep checking around 3-6am EST. The waiting game is brutal but we're almost there!