This is really scaring me. I did sign checks but my partner handled the accountant communications. I trusted him to manage that part while I focused on operations. Are you saying I could be on the hook for the entire amount?

Unfortunately, yes - having check signing authority is one of the major factors the IRS considers when determining who is a "responsible person" for payroll taxes. The IRS doesn't care about your internal agreements regarding who was supposed to handle what - they look at who had the ability to ensure the taxes were paid. That said, this doesn't mean all hope is lost. You should immediately gather documentation showing your partner's role in financial decisions. Emails, texts, meeting notes - anything showing he was primarily responsible for tax matters. While this won't necessarily eliminate your liability, it might help distribute the burden appropriately between partners.

This 100%. I spent months arguing with the IRS before getting a transcript that showed they had applied our Q4 payment to the wrong tax year. The notice amounts don't always tell the full story.

That's a really good point I hadn't considered at all. So would it be better to have two separate LLCs in that case? Would that substantially increase my paperwork/costs?

Yes, from a liability protection standpoint, two separate LLCs would offer better protection. If something happens in your courier business, the game development assets would be sheltered in the separate LLC. It does increase some paperwork and costs. You'd pay two state filing fees (usually $50-$150 per LLC depending on your state), potentially two annual report fees, and would need to maintain separate books, bank accounts, and records for each entity. If you're a single-member LLC filing as a pass-through entity, the tax filing isn't substantially more complicated - you'd just have two Schedule Cs instead of one. A middle ground some people choose is starting with one LLC, then separating into two once the second business (game development) actually starts generating some revenue or when the assets become valuable enough to justify the extra protection.

That's such a smart approach! How complicated was it to set up the DBAs? And did you need separate bank accounts for each one?

It's notable because with all the recent Fed changes, people were expecting the IRS rates to change too. The fact that they're keeping them stable suggests they believe the current economic conditions and inflation outlook are stable. For taxpayers who have payment plans or are dealing with back taxes, any change in these rates can significantly impact how much they end up paying over time. For example, I've been paying down a tax debt from 2022, and a 1% rate change would affect my total cost by hundreds of dollars.

That makes sense, thanks for explaining. I hadn't made the connection to the Fed rate changes. I guess it's good news for anyone with payment plans since the rate isn't going up. My friend has been paying off a pretty substantial tax bill from a few years ago, so I'll let him know the rate is holding steady. He's been worried about the possibility of increases making his payment plan more expensive.

Does setting up a payment plan affect your credit score? I might need to do this this year but I'm also trying to buy a house soon and don't want anything negative on my credit report.

Interesting historical context! How high were tariffs back then compared to what we might need today to fund the modern government? And didn't high tariffs cause problems that eventually led to creating income tax in the first place?

Before income tax became permanent in 1913, tariff rates varied widely but sometimes exceeded 40-50% on many imported goods. However, the federal government was drastically smaller then - no Social Security, Medicare, modern military, or many other major expenditures we have today. You're absolutely right about the historical problems. High tariffs like the Smoot-Hawley Tariff Act of 1930 contributed to trade wars and economic problems. The core issue is that tariffs are essentially taxes on consumption that disproportionately affect everyday purchases. This regressive nature was one reason the progressive income tax system was developed - to tie tax burden more closely to ability to pay rather than consumption needs. Moving entirely back to tariffs would fundamentally shift tax burden distribution across different income levels.

Do you think it would create jobs though? Like all that new manufacturing you mentioned plus all the compliance people? Might balance out the lost tax preparer jobs?

Do you know if these forms matter for the Premium Tax Credit? My sister gets insurance through the marketplace and she's trying to figure out if these forms affect her refund.

Great question! The 1095-B and 1095-C forms themselves don't directly impact the Premium Tax Credit. However, if your sister receives insurance through the marketplace, she should receive Form 1095-A, which IS needed to claim the Premium Tax Credit. The 1095-A is different from the B and C versions and contains essential information for calculating the Premium Tax Credit on Form 8962. So while the B and C forms are just for your records, the 1095-A is actually needed for filing if you got marketplace insurance and want to claim the credit.

Same! I tossed mine and then panicked afterward. Called the IRS and they said it wasn't a big deal as long as I had health insurance. The forms are mostly for their records.