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For what it's worth, I think your accountant dropped the ball here. If he knew he needed your authorization to file an extension, he should have proactively reached out for it rather than just letting the deadline pass. Every accountant I've worked with automatically files extensions if they think there's any chance of missing a deadline. I'd seriously consider finding a new accountant who specializes in small business/partnership returns. A good accountant should have warned you about the March 15 deadline for partnerships (it's different than individual returns) and should be helping you with the penalty abatement rather than just shrugging it off.
Absolutely agree. My accountant always files an extension automatically and then lets me know he did it. You shouldn't have to micromanage your tax professional - that's literally what you're paying them for! Plus a good accountant would help you write the abatement letter or at least give you a template.
I went through this exact situation with my LLC last year and successfully got the penalty waived. Here's what worked for me: I called the IRS using the number on the penalty notice (not the general 1-800 number). Yes, I was on hold for about 90 minutes, but it was worth it for the immediate resolution. When I got through, I was polite but direct: "I'm calling to request First-Time Penalty Abatement for notice [penalty notice number]. This was my first partnership return, I have a clean filing history, and I was unaware of the March 15th deadline." The representative pulled up my account, confirmed I had no prior penalties, and removed the entire $820 penalty on the spot. No paperwork, no waiting weeks for a response. The key is being specific about "First-Time Penalty Abatement" - don't just ask them to "waive the penalty." One tip: call early in the morning (8 AM EST) when they open. Hold times are typically shorter then. And definitely consider switching accountants - yours should have filed an automatic extension or at minimum warned you about partnership filing deadlines being different from individual returns. Good luck! This is very fixable.
Based on community reports, checks dated March 3rd, 2025 are starting to arrive as of March 17th, 2025. Most people are reporting 12-18 day delivery times right now. If you don't receive yours by March 24th, you should call immediately as March 25th is the cutoff for the next batch of replacement check processing. Missing that date could push your replacement into mid-April. The Treasury Department confirmed on February 28th that they're experiencing higher than normal paper check volumes for this tax season.
I'm in the exact same situation! My transcript shows a cashier's check issued 03/03/2025 and I've been checking my mailbox obsessively. After reading through all these responses, it sounds like we're still within the normal timeframe - especially with the Treasury Department processing delays that Paolo mentioned. The explanation from Ava about the multi-step process (IRS generates ā Treasury prints ā USPS delivers) really helps explain why it takes so much longer than the simple "5-7 business days" we see in publications. I'm going to wait until March 24th as Paolo suggested before calling, but it's reassuring to know others with the same issue date are starting to receive theirs. Thanks everyone for sharing your experiences and timelines!
Same here! I've been refreshing my mailbox tracking obsessively since March 3rd. Reading everyone's experiences has been such a relief - I was starting to worry mine got lost. The multi-agency processing explanation makes so much sense now. I signed up for USPS Informed Delivery like Yara suggested, so hopefully I'll get that preview when it's finally on its way. Fingers crossed we both see our checks by March 24th!
Has anyone used FreeTaxUSA? Is it good for reporting both W-2 and gig work? I'm in a similar boat as OP and don't want to pay a ton for tax prep.
I went through something really similar last year! One thing that helped me was keeping track of all my expenses from the gig work - gas, car maintenance, phone bill (if you used it for deliveries), even the insulated bag I bought. Those deductions ended up saving me quite a bit on the self-employment tax. Also, since you're 23 and your parents might claim you as a dependent, double-check with them first. If they do claim you, you still have to file your own return, but you can't claim the standard deduction for yourself. It doesn't change whether you need to file (you definitely do with that gig income), but it affects how much you might owe or get back. Don't stress too much about not having "official paperwork" for the cash tips - the IRS expects you to report all income regardless. Just keep good records of what you earned and when. Most tax software will handle the Schedule C form for your gig work pretty smoothly.
Has anyone actually had their Schedule E audited for trying to claim unreimbursed partnership expenses despite the TCJA suspension? I've been claiming my home office on Schedule E anyway because my tax software lets me and I haven't had an issue for 2 years...
That's playing with fire! The software lets you input it, but that doesn't mean it's legal. Just because you haven't been audited yet doesn't mean you won't be. The IRS has up to 3 years to audit your return (6 years in some cases).
I went through this exact situation last year and ended up working with a tax professional to sort it out. Here's what I learned: The key issue is that under TCJA, unreimbursed partnership expenses are essentially not deductible on your personal return through 2025. However, there are several legitimate workarounds: 1. **Partnership Reimbursement Plan**: Have your partnership adopt an accountable plan to reimburse you for the home office expenses. The partnership deducts it, and you don't report the reimbursement as income. 2. **Guaranteed Payments**: As mentioned above, the partnership can make guaranteed payments to you for office space usage, which creates self-employment income that you can then deduct against on Schedule C. 3. **Partnership-Level Allocation**: Some partnerships can allocate these expenses at the entity level rather than having partners claim them individually. The guaranteed payment route worked best for me since it was straightforward to document and my partnership was small enough to easily amend our agreement. Yes, you pay SE tax on the guaranteed payments, but the home office deduction (using the simplified method) often more than offsets this. Whatever you do, don't just claim it on Schedule E without proper structure - the IRS computers will eventually catch up with returns claiming suspended deductions. Better to do it right from the start!
This is really helpful! I'm new to partnership taxation and had no idea about these workarounds. Quick question - for the guaranteed payment approach, roughly how much SE tax would I be looking at on $1,500 in guaranteed payments? I want to make sure the math works out before I propose this to my partners. Also, did you need to get a lawyer involved to amend your partnership agreement, or were you able to handle that part yourselves? Our partnership is pretty small (just 3 partners) so I'm hoping we can keep it simple.
Vanessa Figueroa
You might want to report them to the IRS. Employers who pay cash and don't send 1099s are usually evading taxes themselves.
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Abby Marshall
ā¢Facts! Form 3949-A is what you need to report tax fraud
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Ella Lewis
Been through this exact situation! Here's what worked for me: 1) Document everything - screenshot your attempts to contact them, keep records of when you worked and how much you were paid. 2) You can report the income on your tax return even without the 1099 - use Schedule C-EZ if it was simple freelance work. 3) The IRS actually has a form (SS-8) to determine worker classification if you're unsure whether you were an employee or contractor. Don't stress too much - being honest about your income is what matters most, and the IRS understands these situations happen.
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