I'm new to this community and finding myself in almost exactly the same situation! My spouse and I set up an LLC partnership in early 2024 thinking we'd launch a small marketing consulting business, but between a cross-country move and some unexpected family health challenges, we ended up with absolutely zero business activity for the entire year. Reading through everyone's experiences here has been such a relief - I was really hoping we could just ignore the tax filing since we literally made no money and had no expenses, but it's clear that Form 1065 is required regardless. The penalty amounts people have mentioned are definitely scary enough to motivate me to get this done! What's been most helpful is hearing the practical details about the process taking 1-2 hours with tax software when there's zero activity to report. We contributed $100 each when we opened the business bank account, so I'll make sure to have those records ready for the balance sheet section. Thanks to everyone who's shared their real experiences - this thread has completely changed my perspective from dreading this filing to understanding it's actually pretty straightforward when you're just reporting zeros. Much better to spend a couple hours getting it done than risk thousands in penalties!

I'm new to this community and in almost the exact same situation! My partner and I formed an LLC partnership in mid-2023 with plans to start a freelance web design business, but between childcare challenges and my partner's job transition, we had absolutely zero business activity in 2024. No income, no expenses, nothing. This entire thread has been incredibly helpful - I was really hoping we could skip filing anything since we literally did no business, but reading about those penalty amounts ($210 per partner per month!) has definitely convinced me that Form 1065 is mandatory regardless of activity level. What's been most reassuring is hearing from so many people who went through the identical process and found it much simpler than expected when there's zero activity to report. The 1-2 hour timeline using tax software like FreeTaxUSA sounds totally manageable, especially compared to risking thousands in penalties. We put in $75 each when we opened our business bank account, so I'll make sure to dig up those bank statements for the Schedule L reporting. Thanks to everyone who shared their real experiences - this thread has transformed my anxiety about this filing into confidence that it's actually doable!

Has anyone used TurboTax for non-resident filing? Their website says they support it but I'm hearing mixed things.

I went through this exact same situation two years ago as an H1B holder from Germany! The tax professional shortage during filing season is real - I called over 15 CPAs and EAs before finding help. A few things that might help while you're figuring out your filing strategy: 1. Double-check your substantial presence test calculation. Since you arrived in March 2024, you'll likely qualify as a resident alien for tax purposes and file Form 1040 (not 1040NR). The test looks at days present in the current year plus weighted days from prior years. 2. For California state taxes, you'll definitely need to file CA Form 540 or 540NR and will likely owe taxes plus potentially an underpayment penalty. California doesn't mess around with their tax collection. 3. Your Indian investment income will need to be reported regardless of your filing status. Look into the US-India tax treaty to see if you can claim foreign tax credits to avoid double taxation. 4. Don't forget about FBAR reporting if your foreign accounts exceeded $10,000 at any point during the year - this is separate from your tax return and has its own deadline. The learning curve is steep but manageable once you understand the basics. Consider setting aside extra time and maybe splitting the work over several days rather than trying to rush through everything at once.

Just want to point out that depending on the type of business entity, there might be restrictions on which accounting method is allowed. C-corps with over $27 million in gross receipts generally must use accrual. Also, certain types of businesses like those with inventory often have specific requirements.

This is definitely a tricky situation, but you're right to be concerned about fixing it properly. From my experience, the key question is whether the difference between what you reported (using accrual numbers) versus what cash basis would have shown is material. If we're talking about significant differences in taxable income, then amending is really your safest bet. The IRS takes accounting method consistency seriously, and having a mismatch between your declared method and actual reporting can cause issues down the road, especially if audited. One thing to consider is the timing - if you're still within the statute of limitations for amendment, it's better to proactively fix this rather than hope it doesn't come up later. I'd recommend calculating what the cash basis numbers would have been and comparing the tax impact. If it's material, bite the bullet and amend. If it's relatively minor, you might have more flexibility, but document your reasoning either way. Have you looked into whether your client meets any of the requirements that would actually require them to use accrual method? Sometimes what seems like a mistake might actually point to a method change that was needed anyway.

Don't feel bad about being confused - this is one of those things that seems way more complicated than it actually is! I work in tax preparation and see this question all the time. The simple answer: All the copies contain identical information. The different labels (Copy B, Copy C, Copy 2) are just old-school designations for where each copy was supposed to go back when everyone filed paper returns. For e-filing with software like TurboTax or FreeTaxUSA, it literally doesn't matter which copy you look at when entering your information - just pick any one and type in the numbers. The software handles all the electronic transmission to the right agencies. Just keep Copy C (the "For Employee's Records" one) in your files for at least 3 years in case you ever need it for verification or if the IRS has questions. That's really all you need to worry about!

I totally get the confusion! I made the same mistake my first year and spent way too much time comparing each copy thinking there had to be some difference I was missing. The key thing to remember is that all these copies contain exactly the same tax information - the different labels are just holdovers from when everyone had to mail paper forms. Copy B was literally meant to be physically mailed with your federal return, Copy 2 with your state return, and Copy C was your personal copy to file away. Now with e-filing, you just need the information from any one copy to enter into your tax software. I usually just grab the first W-2 I see in the pile! The software electronically sends all the data where it needs to go, so those old copy designations don't matter anymore. Just hold onto Copy C (or really any copy) for your records - the IRS recommends keeping tax documents for at least 3 years, but I keep mine for 7 years just to be safe. Don't beat yourself up about not knowing this - the tax system definitely isn't intuitive about explaining these things!

I had a very similar issue with my mortgage at PNC Bank! I'm one of four family members on the loan, but only the first two names appeared on the 1098 form. Like you, I was making most of the payments (about 85%) but my name wasn't on the form at all. What worked for me was calling PNC's mortgage department and asking for what they called a "loan obligation verification letter." It took about 10 days to get, but it clearly stated that all four of us were legally obligated borrowers even though their 1098 reporting system has limitations. When I filed my taxes, I claimed 85% of the mortgage interest (matching the percentage of payments I actually made) and included a brief explanation with my return. I also kept copies of all my bank statements showing the mortgage payments coming from my account throughout the year. The most important thing is making sure your siblings understand they should only claim the portions they actually paid (which sounds like 0% in your case). You definitely don't want the total claimed across all your returns to exceed 100% of what's on the 1098 - that could trigger questions from the IRS. Keep detailed records of all your payments and get that confirmation letter from Citizens Bank. You're absolutely entitled to claim the full deduction since you're making all the payments!

I'm actually going through this exact situation right now with my mortgage at Chase! I'm one of three borrowers on our family property, but only my mom and dad's names show up on the 1098 even though I've been making about 90% of the mortgage payments for the past two years. Reading through everyone's experiences here has been incredibly helpful - I had no idea that the actual payer gets to claim the deduction regardless of whose name is on the form. I was honestly worried I'd completely miss out on this deduction just because of the bank's reporting limitations. I'm definitely planning to call Chase tomorrow to request that "loan obligation verification letter" that a few people mentioned. It sounds like most banks are familiar with this type of request for tax purposes, so hopefully it won't be too much of a hassle. My biggest concern now is making sure my parents don't accidentally claim any portion of the mortgage interest on their return. We typically do our taxes separately, so I need to have a conversation with them about this situation. Since I'm making almost all the payments, I should be claiming almost all of the deduction, but I want to make sure we coordinate properly to avoid any issues with the IRS. Thanks to everyone who shared their experiences - this thread has really helped me understand how to handle this properly!