Reading through this thread has been incredibly helpful! I'm dealing with a similar situation with my fitness studio. We were forced to close completely for 3 months in 2020, then allowed to reopen but with severe capacity restrictions (from 40 people per class down to 8) and no group fitness classes allowed - which was about 60% of our revenue. I've been hesitant to claim the ERC because I wasn't sure if the capacity restrictions counted as a "partial suspension" once we reopened. But based on what everyone's shared here, it sounds like we clearly meet the "more than nominal" threshold since group classes were such a significant part of our operations. The documentation advice about keeping records of specific government orders is spot on. I still have all the health department notices that detailed exactly when restrictions changed and what we were/weren't allowed to do. One question for those who've been through this process: when calculating qualified wages, do you include wages paid to employees who were working reduced hours due to the capacity restrictions, or only wages paid during periods of complete closure? The IRS guidance on this specific scenario has been confusing. Thanks to everyone who's shared their experiences - it's made me much more confident about moving forward with our claim!

This has been such a valuable discussion! I'm a CPA who's helped dozens of clients with ERC claims, and I wanted to add a few additional points that might help others navigating this process. First, for those still unsure about documentation - the IRS isn't looking for perfect financial analysis. They want to see that you can reasonably demonstrate the government orders had a meaningful impact. A simple comparison showing your normal operations versus what you were allowed to do under restrictions is often sufficient. Second, don't overlook the interconnected nature of business operations. Even if one part of your business could continue, restrictions on another part can qualify your entire business. For example, if a restaurant's dining room closure forced them to lay off servers and reduce kitchen staff, the impact extends beyond just the dining area. Third, timing matters for quarterly qualification. You need to identify the specific quarters when restrictions were in effect. Some businesses qualify for 2020 Q2-Q4, others might qualify for different periods depending on when their local orders were implemented. Finally, I've seen businesses miss out on legitimate claims because they assumed they didn't qualify. The "more than nominal" test is more forgiving than many realize - if you had to significantly change how you operate due to government orders, you likely qualify. Don't let perfect be the enemy of good when it comes to documentation. The tools and resources mentioned in this thread (like taxr.ai for analysis and Claimyr for IRS communication) can definitely help, but the most important thing is getting started and not leaving money on the table due to confusion or hesitation.

I can totally relate to not wanting to get your hopes up after going through disappointments! The code 290 with $0.00 is actually a really positive sign - it means the IRS has received and accepted your amended return for processing. That 'as of' date of 6/10/2024 is when their system is scheduled to cycle through and potentially post new updates to your account. From what I've seen in this community, many people start seeing additional movement (like refund codes) within a few weeks of their 'as of' date. The waiting is absolutely brutal, but you're definitely in the system now and moving forward! I'd suggest checking your transcript once a week rather than daily - it helps preserve your sanity while keeping you informed. You've got this!

I totally get the anxiety around not wanting to get your hopes up - amended returns can be such an emotional rollercoaster! But honestly, seeing that code 290 with $0.00 is actually really encouraging. It means the IRS has officially acknowledged your amended return and it's entered their processing pipeline. That 'as of' date of 6/10/2024 is particularly interesting because it's when their system is scheduled to cycle through and potentially post updates to your account. From my experience helping others navigate this process, many people see their next set of codes (hopefully including refund codes!) appear within 1-3 weeks of their 'as of' date. The hardest part - getting into the system - is behind you now. I'd recommend checking your transcript maybe once or twice a week rather than daily to save your sanity. The waiting is brutal, but you're definitely moving in the right direction. Keep us posted on what happens around that 6/10 date!

Great point about the rounding issue! I just double-checked my numbers and thankfully they do add up to exactly 100%, but that's definitely something I wouldn't have thought to verify. It's crazy how a tiny rounding error can trigger IRS scrutiny when you're trying to fix a legitimate mistake. Based on all the advice here, it sounds like my best path forward is to: 1. File corrected K-1s marked "CORRECTED" for just the two affected partners 2. Include a cover letter with our EIN, tax year, and explanation that only ownership percentages needed correction 3. Attach relevant pages from our partnership agreement showing the correct percentages 4. Verify all percentages across all partners still total exactly 100% Thanks everyone for the detailed guidance - this has been incredibly helpful! Much better than the vague advice I was getting from other sources.

Just wanted to chime in as someone who's dealt with K-1 corrections multiple times. Your situation is actually pretty straightforward - corrected K-1s are definitely the way to go rather than amending the entire 1065. One additional tip that saved me headaches: when you prepare the corrected K-1s, make sure to use the exact same form version and format as your original filing. The IRS can get picky about consistency between original and corrected forms. Also, consider sending the corrected K-1s to your partners via certified mail so you have proof of delivery - this can be helpful if any questions come up later about when they received the corrections. The advice about documenting everything is spot on. Keep copies of all your correspondence and supporting documents in case the IRS has follow-up questions. In my experience, when you're proactive about explaining the correction and provide clear documentation, the IRS processes these amendments pretty smoothly.

Has anyone used the IRS Tax Withholding Estimator for this kind of situation? I tried it but it got super confusing when entering multiple jobs.

I had almost the exact same thing happen to me! Been working two jobs for about 4 years, and suddenly my part-time employer started withholding federal taxes right after I changed my main job. What I figured out was that the new W-4 form has this "multiple jobs worksheet" section that's way more sensitive than the old system. Even if you don't explicitly check the multiple jobs box, certain combinations of how you fill out the form can trigger withholding changes across employers. The easiest fix is to go to your HR department at your full-time job and ask for a blank W-4. Fill it out exactly like your old one (conservative approach - just your basic info and filing status, no extra complications). That should reset things back to how they were. You can also submit a new W-4 to your part-time job requesting exemption from federal withholding if you prefer to handle it all through your main job like before. I'd recommend running the numbers through a tax calculator first though to make sure you're still withholding enough overall - the new system might actually be more accurate for your situation even if it's annoying!

I've been using AI tax tools for the past two years and I'm honestly impressed with how much they've improved. The key is choosing a reputable one and understanding its limitations. For your situation - W-2, some 1099 income, and mortgage interest - most good AI tax services should handle this just fine. The mortgage interest deduction is pretty straightforward, and the 1099 reporting isn't too complex at that income level. What I really like about AI tax tools is they often catch deductions I wouldn't have thought of. Last year mine suggested a home office deduction for my freelance work that saved me hundreds. They also explain everything in plain English instead of tax jargon. That said, I'd recommend doing a bit of research before choosing one. Read reviews, check their security practices, and make sure they offer some kind of support if you run into issues. Some people mentioned good experiences with specific services in this thread that might be worth looking into. The biggest advantage for me has been the cost savings - I was paying my accountant $400+ every year and now I spend maybe $50-75 on the AI service with better results.

I've been working in tax preparation for over 15 years, and I have to say the AI tools have gotten surprisingly sophisticated. For someone with your tax situation - W-2, moderate 1099 income, and first-time homeowner deductions - AI should handle it well. The mortgage interest deduction is one of the most straightforward deductions to process, and $14k in 1099 income puts you in a sweet spot where the calculations aren't overly complex but there are still potential business deductions to explore. One thing I'd suggest is making sure whatever AI service you choose can properly handle quarterly estimated tax calculations for next year. With that level of 1099 income, you'll likely need to make estimated payments in 2025 to avoid underpayment penalties. A good AI tool should automatically calculate these and remind you when they're due. Also, don't overlook potential deductions related to your side gig - things like business use of your phone, internet, equipment, supplies, or even a portion of your home if you use it exclusively for work. AI tools are getting much better at identifying these opportunities through targeted questions. The audit protection offered by most reputable AI services is comparable to what you'd get from TurboTax, so that shouldn't be a major concern. Just make sure to keep all your supporting documents regardless of which method you choose.