Does using Form 4852 cause any red flags with the IRS? I'm always paranoid about doing anything unusual on my taxes that might trigger an audit.

Using Form 4852 by itself doesn't automatically trigger an audit or create red flags. It's an officially recognized form specifically created for situations like this. However, it's important to be as accurate as possible with your estimates to avoid discrepancies. The key is documenting how you arrived at your figures - keep copies of your paystubs or any other records you used to calculate the amounts. If your employer eventually provides a W-2 that differs significantly from your estimates, you should file an amended return. The IRS understands that you're doing your best with the information available to you when your employer fails to fulfill their legal obligation.

Just be aware the Get Transcript feature on irs.gov won't have your W-2 info until several weeks after employers submit them to the IRS. And if your employer is generally disorganized enough to not send your W-2 to you, they may not have submitted it to the IRS either.

Do you know if this applies to divorce name changes too? I'm going back to my maiden name after divorce but haven't updated my SS card yet. Should I file with my married name still since that's what's on my current card?

Yes, the same principle applies to divorce situations too. You should always file with whatever name is currently in the Social Security system, which would be your married name until you complete the name change process with the SSA. Even if you've started the process to change back to your maiden name, until it's fully processed and you receive your new card, the SSA database still has your married name. Filing with anything else will cause a rejection.

Does mailing a paper return avoid the name verification completely? My situation is complicated because I have both names on different official documents and I'm not sure which one the SSA actually has on file anymore.

How long did it take to get your refund after mailing in the paper returns? And did you mail them all together or separately?

It took about 12 weeks to get my refund after mailing in the paper returns. That's much longer than the typical 21 days for e-filing, but expected for paper returns. The IRS is still working through backlogs. I mailed each tax year in separate envelopes to different processing centers. The IRS has different mailing addresses depending on your state and the tax year, so definitely check the IRS website for the correct address for each return. Don't bundle them together - each year needs to go to the specific processing center for that tax year.

What software did you use for your back filing? I'm trying to figure out the most affordable option since I have to do multiple years.

Our operating agreement doesn't have anything specific about debt allocations, just the standard profit/loss percentages. Does that mean we default to allocating based on the guarantees? And what if a member who guaranteed the debt has a negative capital account - does that change anything?

Without specific debt allocation provisions, you'll default to the general tax rules which typically assign recourse debt basis to those bearing the economic risk of loss - meaning your guarantors. A negative capital account doesn't change the debt allocation rules, but it's actually a good sign that the member might need that debt basis. The debt allocation essentially helps prevent a partner from going too negative in their capital account. This is why guarantors often want that debt basis - it gives them more ability to take losses without triggering basis limitations.

Is the guarantee fee tax deductible to the LLC? And how do the guarantors report that income? As ordinary income or something else?

Thanks for this perspective! One question though - does the storage area need to be COMPLETELY exclusive to inventory? Like, I keep most of my supplies in plastic bins that are stacked against one wall of the spare bedroom. The room is maybe 200 sq ft total, but the storage probably only takes up about 40 sq ft. Can I deduct just that portion?

The general rule is that the space needs to be used exclusively for business, but there's a special exception for inventory storage. If you're selling products as your business (which you are), and your home is the only fixed location of that business, you can deduct the space used for inventory storage even if it's part of a room. In your specific case, you could potentially deduct the 40 sq ft used for storage, not the entire 200 sq ft room. You'd calculate what percentage that 40 sq ft is of your entire home's square footage. So if your home is 2,000 sq ft total, you'd be deducting 2% (40 ÷ 2,000) of your eligible home expenses.

Can you do both in the same year though? Like use regular home office deduction for the storage space, but also use Augusta Rule to rent your living room to your business for a few days for meetings?