Quick question - I'm in the same boat but my tax software didn't generate a 1040-V for me. Where can I get this form? Is it on the IRS website?

Just to add another perspective - I've been through this exact situation multiple times over the years. You definitely do NOT need to include your tax return when mailing Form 1040-V with your payment after e-filing. The IRS already has your return electronically, and the 1040-V voucher contains all the necessary information to match your payment to your account. One thing I'd emphasize is to make sure you sign the Form 1040-V - I've seen people forget this step! Also, if your payment is over $100,000, you actually need to use different procedures, but for most people the standard 1040-V process works perfectly. Don't stress about it - you're doing it right by just sending the voucher and check together!

Has anyone used business tax software for their 1065 instead of a CPA? Any recommendations? I'm in a similar boat trying to save on accountant fees.

I went through this exact same situation last year with my first 1065 filing! The distinction between income allocation and distributions was the most confusing part for me too. Just to reinforce what others have said - you absolutely will pay taxes on the full $63,000 allocated to you, even though you only took $48,000 in cash. Think of it this way: the partnership earned profits, and your share of those profits ($63,000) is what gets taxed on your personal return. The $48,000 you actually took out is separate - it's just you accessing money that was already allocated to you. The $15,000 difference stays in the business and increases your ownership stake (basis). So when you eventually sell your partnership interest or the business liquidates, that $15,000 will reduce any taxable gain you might have. For the $12,000 capital contribution, that also increases your basis but doesn't affect your current year tax liability. It's essentially you investing more money into the business. One tip - keep really detailed records of all these transactions (contributions, distributions, allocated income) because you'll need to track your basis year over year. It becomes super important if you ever take distributions that exceed your basis, as those become taxable events. Good luck with the filing! It's definitely learnable, but don't feel bad if you end up going back to your CPA this year while you get comfortable with the concepts.

Has anyone else gotten confused about the ordering of NOL usage? My understanding is that you have to use the oldest losses first, but our tax software seems to be applying them differently.

I'm dealing with a similar situation as a new startup owner. One thing that helped me understand this better was realizing that Form 1120 line 29a is specifically for the NOL deduction you're claiming in the CURRENT year, not just tracking your total accumulated losses. Since you have negative taxable income again this year, you won't enter anything on line 29a because there's no positive income to offset. But you're absolutely building up your NOL carryforward balance - you'll have $42,000 from year 1 plus your new $38,000 loss from this year. The key is maintaining good records of these accumulated losses. I keep a simple schedule that tracks each year's NOL separately because when you eventually become profitable, you'll need to apply them in the correct order (oldest first) and follow the 80% limitation rule for post-2017 losses. Don't worry - you're not missing out on any tax benefits by not using the NOLs now. They'll be there waiting for you when your startup starts generating taxable income!

Has anyone actually gone the SDOP route for small amounts like this? I'm curious what the experience was like and if they actually enforce the full 5% penalty on your highest balance.

I went through almost exactly this situation two years ago with $18 of unreported dividend income from a Canadian account. After consulting with a tax attorney, I went with Option A - filed the delinquent FBAR and amended my return to report the income. The key is crafting a solid reasonable cause statement that emphasizes three things: 1) You were unaware of the FBAR requirement, 2) The amount of unreported income is truly minimal, and 3) You're voluntarily coming forward to correct the oversight as soon as you discovered it. I included documentation showing when I first learned about FBAR requirements and explained that the oversight was clearly not willful given the tiny amount involved. The IRS accepted my reasonable cause explanation and I received no penalties. The SDOP penalty structure is designed for situations involving significant tax avoidance, not honest mistakes with minimal amounts. For $21 of income, paying thousands in penalties would be completely disproportionate. Option A is definitely your best path forward - just make sure to document everything properly and be completely honest in your reasonable cause statement.

Has anyone used TurboTax for farm stuff like this? Their self-employed version claims to handle Schedule F but I'm wondering if it's adequate for something specific like alpaca farming or if I should find an accountant who specializes in agriculture.

I've been raising alpacas for fiber and meat for about 4 years now, so I can share some real-world experience here. You're absolutely on the right track - alpacas for meat production definitely qualify for farm tax deductions just like any other livestock. A few practical tips from my experience: First, document EVERYTHING from day one. I keep detailed records of feed costs, vet bills, fence repairs, even my mileage to livestock auctions. The IRS loves paper trails. Second, get your business license and EIN right away - it shows you're serious about this being a business, not a hobby. One thing that's helped me is connecting with other alpaca farmers in my area. There's actually a growing network of meat producers (it's gaining popularity!). Having documentation of market research and connections to buyers really strengthens your case that this is a legitimate business venture. Also, consider starting with breeding stock rather than just meat animals. You can sell offspring for both breeding and meat, which diversifies your income streams and makes the profit motive more obvious to the IRS. Plus, breeding animals have different depreciation schedules that can be advantageous. The 5-acre property should be perfect for 3-4 alpacas. Just make sure you're using the land primarily for the farming operation to maximize your deductions.