What Documents to Bring to CPA for Partnership 1065 Tax Return Filing?

This is really helpful, thank you! Question though - we haven't been tracking our mileage super carefully. My partner sometimes uses his personal car for deliveries. Can we still claim those expenses somehow or are we out of luck because we didn't keep detailed logs? Also, for the partnership agreement, we have a basic one we did online. Is that good enough or should we have a lawyer review it before the CPA appointment?

For the mileage, you can still claim it, but you'll need some reasonable basis for the deduction. Try to create a log now based on your delivery records, calendar appointments, or any other documentation you have. Going forward, I recommend using a mileage tracking app - there are many free ones available. Regarding the partnership agreement, your basic online agreement is fine for the tax filing. The CPA mainly needs it to understand profit/loss allocations, partner responsibilities, and distribution terms. You don't need a lawyer to review it before the tax appointment, though having a lawyer review it at some point is generally a good business practice.

Does it handle different allocation situations? My partner and I split profits 60/40 but we put in different capital amounts initially.

Sounds interesting but I'm worried about security. How does it work with sensitive financial docs? I don't want my business info floating around online.

Yes, it handles different profit/loss allocations perfectly. You can set up the 60/40 split and specify different initial capital contributions. The system will track each partner's basis separately according to your specific arrangement. For security concerns, they use bank-level encryption and don't store your actual bank credentials. You upload documents directly or connect through secure APIs. I was hesitant at first too, but their privacy policy convinced me - they don't sell or share your data with third parties. My accountant actually commented on how well-organized everything was compared to his other clients.

How does this actually work? I've been on hold with the IRS for literally hours before giving up. Seems too good to be true.

Yeah right. Nothing gets you through to the IRS faster. I'll believe it when I see it. Last time I needed to talk to someone I waited 2+ hours and then got disconnected. Complete waste of time.

It works by using a callback system that navigates the IRS phone tree and holds your place in line. When an agent becomes available, Claimyr connects the call to your phone. You don't have to wait on hold - you just get a call when an agent is ready to talk. I was skeptical too. I had been trying to reach the IRS for three days straight with no luck. With Claimyr, I got a call back in about 45 minutes with an agent on the line ready to answer my questions about special allocations on our 1065. Saved me hours of frustration and helped me resolve my issue before our filing deadline.

Thanks for mentioning this! We did get a small EIDL advance at the beginning of our operation. Should we bring the original loan documents or just the statement showing the forgiveness? My partner and I both work full-time in the bakery, easily over 500 hours each, so I'll definitely note that for self-employment tax purposes.

Bring both the original loan documents and the forgiveness confirmation if you have it. Your CPA will need to see the dates, amounts, and terms to properly account for everything. The forgiveness letter is especially important as it confirms the amount that won't be treated as taxable income. Since you both work full-time in the business, definitely make that clear to your CPA. You'll likely be subject to self-employment tax on your distributive shares of income. This is an area where partnerships can get complicated with the split between guaranteed payments and distributive shares, so having an experienced CPA is really valuable.

So true! Last year I thought I had everything and my CPA asked for documentation of my home internet expenses since I claimed part of it as a business expense. This year I'm scanning EVERYTHING just in case.