Does anyone know if you can e-file an amended return for a situation like this? Last time I had to amend (2023 taxes), I had to mail it in and it took forever to process. I'm worried about mailing in an amendment now with all the IRS backlogs I keep hearing about.

I'm dealing with a similar situation right now! Just received two late K-1s last week - one from a real estate partnership and another from what I thought was a closed investment account. It's so frustrating when you think you're done with taxes and then these forms show up. From what I've learned, the key is not to panic. You definitely need to amend, but since your K-1 shows a loss, you're likely going to get additional money back rather than owing more. The IRS understands that K-1s often arrive late - it's actually pretty common. One thing I'd suggest is gathering all your original tax documents before you start the amendment process. You'll need to recreate your tax situation and then add in the K-1 information. Also, keep detailed records of when you received the K-1 in case the IRS has any questions later. The fact that you're proactively handling this shows good faith on your part.

I think everyone's overthinking this. I've done several rollovers and the key document you need is the final statement from your old 401k provider showing the breakdown between pre-tax and after-tax amounts. Get that, keep it with your tax records, and report things correctly on your Form 8606. The fact that Vanguard messed up initially is annoying but fixable. For the future, be aware you can request a direct trustee-to-trustee transfer instead of having checks sent, which often prevents these kinds of mixups.

I've been through a similar rollover mess and want to add a few practical tips that helped me navigate this: First, regarding your concern about not investing the money - you're actually smart to keep it in cash/stable value until this is sorted out. Capital gains/losses on top of the rollover confusion would just create more headaches come tax time. For documentation, create a simple spreadsheet tracking everything: original after-tax contribution amounts from Fidelity statements, the rollover amount, the Roth conversion amount, and dates for everything. This becomes your "story" that connects all the 1099s you'll receive. One thing I learned the hard way - if you're going to convert more money from Traditional to Roth (like the proportional gains the EY person mentioned), do it before December 31st. Roth conversions can't be undone anymore, so you want to be strategic about the timing and tax implications. Also, don't just rely on Vanguard's customer service to "code this correctly." They're not tax advisors and their 1099-R will likely just show a standard conversion. The burden is on you to properly report this on your tax return using Form 8606, regardless of how their forms look. Last tip: if you do decide to hire a tax professional, find one who specifically deals with complex retirement account issues. Many general CPAs don't handle these mega backdoor Roth situations regularly and might not catch important details.

I'm confused about something - I thought all self-employed people working at the same location need to be on 1099s? My accountant said if someone works at my business location, I absolutely have to give them a 1099 even if they're "independent" otherwise it's tax evasion.

I've been dealing with a similar situation at my own pet grooming business, and I can confirm that booth rental arrangements are completely legitimate when structured properly. I went through an IRS audit last year and had zero issues with my table rental setup. The key things that helped me during the audit were: 1) Having clear written lease agreements that explicitly state each groomer is renting physical space, not providing services to me 2) Keeping completely separate business operations - they use their own scheduling systems, payment processing, and client management 3) Documentation showing they carry their own business insurance and file their own taxes 4) Records proving they control their own pricing, hours, and service offerings One thing I learned during the audit process is that the IRS agent specifically looked for evidence that I wasn't controlling how they performed their work. Since each groomer operates independently and just happens to work in my facility, it was clear this was a landlord-tenant relationship rather than employer-employee. The fact that you also work as a groomer in the same space is irrelevant - I do too, and it didn't raise any red flags. Just make sure your lease agreements are solid and you maintain clear boundaries between your grooming business and your property rental business. Don't let the online comments scare you - this is a well-established business model that works perfectly fine when done correctly.

Something important that hasn't been mentioned yet - make sure you're tracking your "at-risk" amount separately from both your basis and your passive activity amounts. It's a third limitation that can affect how losses are treated. I learned this the hard way with my LLC. Even though I had sufficient basis and wasn't limited by passive activity rules (because I was active), I still couldn't take some losses because of the at-risk rules. The tax software didn't explain this clearly. For your spouse who is active, their "at-risk" amount might become the limiting factor rather than the passive activity rules. For you as the passive investor, you'll likely hit the passive activity limitations before the at-risk limitations come into play.

This is a great discussion that really highlights how complex LLC taxation can get when you have mixed active/passive ownership. I've been dealing with similar issues in my practice. One thing I'd add for future reference - it's worth having your LLC operating agreement clearly define each member's level of participation upfront. This can help avoid confusion later when determining who qualifies as active vs passive for tax purposes. Also, @Mary Bates, since you mentioned this is an ongoing issue, you might want to consider whether it makes sense to elect S-corp taxation for your LLC (Form 2553). While it won't eliminate the passive loss limitations for you as a passive member, it could simplify some of the QBI calculations and potentially provide other benefits depending on your specific situation. The key takeaway from all these comments is that LLC losses involve multiple layers of limitations (basis, at-risk, and passive activity) that work in sequence. Each one needs to be tracked separately, and most good tax software will handle this automatically - but it's always worth verifying the forms are being generated correctly.

As someone who's been through this exact situation, I can confirm what others have said - preparers don't need to keep copies of everything, but YOU definitely need to keep your records organized for potential audits. One thing I learned the hard way: even if your preparer doesn't ask for detailed documentation upfront, having it organized makes the whole process smoother and cheaper. My first year I showed up with a shoebox of receipts and my preparer charged me extra just to sort through everything. Now I keep a simple spreadsheet throughout the year with columns for date, amount, category, and business purpose. Takes 2 minutes when I make a purchase but saves hours during tax season. For mileage, I use a basic app that tracks both distance and business purpose automatically. The key is that while your preparer might not need copies, the IRS absolutely will if you get audited. And trust me, you don't want to be scrambling to recreate records years later when you can barely remember what you had for breakfast yesterday!

Great question! I went through this same stress last year when I started my consulting business. Here's what I learned from both my preparer and an IRS audit (yes, I got audited in my first year - lucky me!): Your tax preparer doesn't need physical copies of all your receipts, but they do need to feel confident that your numbers are reasonable and that you have documentation to back them up. Most will have you sign something saying you have records to support your deductions. The real issue is what happens if YOU get audited. The IRS will want to see actual proof - receipts, bank statements, mileage logs, etc. During my audit, they accepted bank/credit card statements for most expenses as long as I could explain the business purpose. For mileage, they wanted to see a log with dates, destinations, and business reasons. My advice: get organized now, not just for your preparer but for your own protection. Even if you're missing some receipts, having most of your documentation in order will make both the tax prep process and any potential audit much less stressful. And honestly, a good preparer will appreciate the effort and might even charge you less if you come in organized rather than with a pile of loose papers. Don't stress too much about perfect documentation - just do your best to organize what you have and commit to better record-keeping going forward!