You're absolutely correct about the per-recipient rule! It sounds like you've got everything figured out properly. Since your largest gift to any single person was $12,000 (well under the $18,000 annual exclusion), you definitely don't need to file Form 709. Just to put your mind completely at ease - the IRS won't come after you for this. Their systems are sophisticated enough to distinguish between people who have actual filing requirements and those who simply filed extensions out of caution. Extensions are meant to give taxpayers time to properly evaluate their situation, which is exactly what you did. The fact that you're being so careful and thorough about this shows you're handling your tax obligations responsibly. You can safely ignore the extension you filed and move on - no further action needed!

I had a very similar situation two years ago! Filed Form 8892 for an extension thinking I needed to report some large gifts to family members, but then realized I was well under the annual exclusion limits. I was really worried about it at the time. I ended up calling the IRS directly (after waiting on hold forever) and the agent confirmed that filing an extension and then not filing the actual form is completely normal and won't cause any issues. She said they see this all the time - people file extensions out of caution while they're figuring out their obligations. The key thing is that you correctly determined you don't have a filing requirement. The IRS systems don't automatically flag people who file extensions but don't follow up with the actual form, especially for gift tax where many people aren't sure if they need to file. You're being very responsible by double-checking everything. Based on what you've described (staying under $18,000 per recipient), you're totally in the clear. No need to stress about this anymore!

The way I remember the difference: BEAT targets payments going OUT to related foreign entities, while GILTI targets income coming IN (or that should come in) from foreign subsidiaries. BEAT = payments OUT (deductions) GILTI = income IN (inclusions) Hope that helps!

This is such a helpful thread! I'm a CPA working with several multinational clients and these concepts still trip me up sometimes. One thing I'd add for your exam prep is to really focus on the ordering rules - understanding which income gets characterized as Subpart F first, then GILTI, and how that affects your foreign tax credit calculations. Also, remember that the participation exemption creates a "previously taxed income" concept that's different from the old PTI rules. Income that's been subject to GILTI or Subpart F inclusion can later be distributed tax-free under 245A, but you need to track the basis adjustments carefully. The policy story helps too: Congress wanted to move toward a territorial system (245A) but was worried about base erosion, so they added guardrails (GILTI for income shifting, BEAT for deduction shifting, enhanced Subpart F for passive income). Understanding this framework makes the mechanical rules easier to remember.

Something nobody's mentioned yet - if this is going to be an ongoing issue, consider setting up separate business bank accounts for each gig job. I did this last year and it's made tracking expenses for each Schedule C WAY easier. Not helpful for your current situation but might save you headaches next year.

Great question! I went through something similar last year with Uber and Instacart. Here's what I learned from my tax preparer: The IRS generally accepts reasonable allocation methods when you don't have perfect records. Your best bet is to allocate based on a combination of factors that make sense for your situation: 1. **Income proportion** - If DoorDash was 70% of your gig income, allocate 70% of miles there 2. **Adjust for business type** - Since food delivery typically requires more driving per dollar than dog walking, you might weight the DoorDash allocation slightly higher For your 4,000 total miles, document your reasoning (maybe DoorDash gets 75% = 3,000 miles, Wag gets 25% = 1,000 miles) and keep a simple written explanation of how you arrived at these numbers. The key is being reasonable and consistent. At $0.67 per mile for 2024, that's still a significant deduction that's worth claiming properly. Just make sure to use the standard mileage rate consistently across both Schedule Cs - don't mix it with actual expense method. And definitely start tracking properly going forward! Even a simple phone app will save you this headache next year.

I got audited last year on this exact issue with a different commodity futures partnership! My advice: keep EXTREMELY detailed records of your basis adjustments. The IRS computer system often flags returns where the basis reported on Form 8949 differs significantly from what's on the 1099-B, even when you use the adjustment codes correctly. The auditor initially thought I was trying to avoid taxes until I showed my spreadsheet tracking each year's: - K-1 income by category (especially Section 1256 gains) - Distributions received - Basis adjustments calculated - Supporting documentation After reviewing everything, the auditor agreed my calculations were correct. But save yourself the headache and document EVERYTHING about your basis calculations!

Based on everyone's helpful responses, I want to add one more critical point that saved me significant time and potential errors: always request the "Partnership Basis Schedule" or "Outside Basis Statement" from the partnership if they provide one. Some partnerships like USO will provide a detailed basis tracking statement upon request that shows your cumulative basis adjustments from year to year. This can be incredibly helpful for complex situations involving multiple years of Section 1256 gains and distributions. If your partnership doesn't provide this, I highly recommend creating your own tracking spreadsheet starting from day one. Include columns for: - Beginning basis each year - K-1 income items (by line) - K-1 loss items (by line) - Distributions received - Ending basis This becomes invaluable when you sell, especially for partnerships with complex activities like commodity futures. It also provides clear documentation if you ever face an audit on the basis adjustments you report on Form 8949. The key is being proactive about tracking rather than trying to reconstruct everything when you sell years later!

ngl that taxr.ai thing mentioned above is clutch. used it last week and it broke down everything step by step. way better than trying to decode these transcripts myself lol

Had the exact same situation last year - 570/971 codes appeared after my EIC processed. The waiting is definitely stressful but in my case it was just routine verification. They wanted to confirm my child's social security number matched their records. Got my notice about 3 weeks after the 971 code date, sent back the requested docs, and refund hit my account about 6 weeks later. Keep checking your transcript for updates and respond to any IRS correspondence ASAP. The delay sucks but it's pretty standard for EIC claims nowadays.