That's a great point I hadn't considered! Do you know where I would find information about my state's specific rules for medical deductions? Is there a website that compares all the different state rules?

The best place to check is your state's department of revenue or taxation website. Just google "[your state] department of revenue medical expense deduction" and you should find the official information. Each state has different rules, and they don't always match federal guidelines. Don't bother with websites that compare all states - they're often outdated. Your state's official tax website will have the current rules. You can also download your state's income tax forms and instructions, which usually explain the medical deduction rules in detail.

The HSA suggestion isn't great for someone at this income level. You need a high-deductible health plan to qualify, and those can be risky for lower income folks. Plus HSAs don't typically work with dental unless it's medically necessary.

I didn't know about Informed Delivery! Just checked and my post office does offer it, but it takes a few days to set up so probably won't help with this letter. But thanks for the TAS number - I'll definitely call them if I can't work something out with the regular IRS line. I'm definitely in hardship territory right now, so maybe they can help me out.

Is this true about the appeal clock starting at attempted delivery? That seems really unfair. What if you're on vacation or something? How would you even know they tried to deliver it?

Thanks for clarifying! That makes sense. Do you know if there's a sample of the new form available somewhere online that shows the exact layout? Would be nice to see what I'm going to be dealing with.

Yes, the IRS has published draft versions of the new K-1 forms on their website. If you go to IRS.gov and search for "2023 draft forms" you should be able to find it. They usually have PDF versions of all the draft forms with instructions. The final version might have some minor changes, but the draft will give you a good idea of the new layout and where to find the guaranteed payments section.

The new K-1 format actually improves the reporting of foreign income and taxes. Instead of lumping foreign taxes into a single box with a statement, the new format breaks out foreign income by country and provides clearer reporting of the foreign taxes paid. This should make calculating your foreign tax credit much easier. There's a new specific section for international tax matters that provides more granular information. You'll see a country-by-country breakdown rather than having to decipher sometimes confusing supplemental statements. This is especially helpful if you have income from multiple countries since you can more easily track which income relates to which foreign tax.

That's such a relief to hear! The supplemental statements were always inconsistent between my different partnerships. Having it directly on the form with a standard format will make things so much clearer. Thanks for the info!

Wait, so employees can't deduct mileage at all anymore? I've been tracking all my miles going between worksites thinking I could claim them. Does that only work for self-employed people now?

Yes, that's exactly right. Since the 2017 Tax Cuts and Jobs Act, employees can no longer deduct unreimbursed business expenses, including mileage, on their personal tax returns. This elimination of miscellaneous itemized deductions is scheduled to continue through 2025. Self-employed individuals, independent contractors, and business owners can still deduct their legitimate business mileage on Schedule C or their business returns. So if you're an employee, your best option is to request an accountable reimbursement plan from your employer.

Yes! This varies by state. In California, labor laws require reimbursement for all necessary business expenses including mileage, which can be interpreted more broadly than IRS rules. Massachusetts and Illinois have similar requirements. Always check your state's specific regulations.

This is really good advice. We got audited in our third year and they actually asked for documentation going back to our formation date, including stuff from before we had any financial activity. Do you know if there's a specific format the IRS prefers for board meeting minutes? We've just been doing informal notes.

There's no specific IRS-required format for board meeting minutes, but they should be formal enough to clearly show proper governance. At minimum, include date, time, location, board members present/absent, all motions made and voting results, and any significant discussions about financial matters or organizational policies. Having a consistent format helps tremendously. We created a template that includes approval of previous minutes, financial reports review, and any board actions taken. Date and sign them after approval at the next meeting. Even for those early meetings when you had no financial activity, document discussions about your mission, fundraising plans, and organizational structure. These help establish that you were operating consistently with your exempt purpose from the beginning.

We did that for our first 18 months and it was SO much easier. A local community foundation acted as our fiscal sponsor, handled all the tax filing/reporting, and we just focused on our programs. We paid them 8% of donations, but it was worth it until we were big enough to justify the administrative overhead of independence.