Has anyone tried ProSeries for 1065s? My accountant friend suggested it might be good for my situation (3 investment LLCs with about 30 investors total), but I haven't found many reviews from people using it specifically for investment partnerships with lots of K-1s.

I've been using TaxSlayer Pro for my investment partnership returns for the past two years and it's been solid for my needs. I manage 4 LLCs with about 60 K-1s total across them, so similar volume to what you're dealing with. The main advantages I've found: reasonably priced (especially compared to UltraTax/Lacerte), good member database that carries forward year to year, and pretty intuitive K-1 batch processing. It handles the allocation calculations well and makes it easy to review all K-1s before finalizing. One thing to note - the state filing support isn't as comprehensive as some of the higher-end options, so if you have members in obscure states that might be a consideration. But for federal 1065s and common state filings, it's been reliable. The e-filing has worked smoothly too. For SPVs with straightforward financials but lots of partners, I think it hits the sweet spot between functionality and cost. Worth checking out their trial version to see if the interface works for you.

Has anyone tried calling the IRS Taxpayer Advocate Service for this issue? Would this qualify as a hardship case if you need the refund for medical expenses? I've heard they can sometimes expedite amendments in certain situations, but I'm not sure if this would qualify?

I actually contacted the Taxpayer Advocate Service (TAS) for a similar EV credit amendment situation last year. They can potentially help if you meet their criteria for "significant hardship" - which includes situations where you're facing immediate threats to your health or safety, or if IRS actions/inactions are causing economic harm. For medical expenses, you'd need to demonstrate that the delayed refund is preventing you from getting necessary medical care. TAS generally requires that you've already tried normal IRS channels first and waited the expected processing time (which is currently 16-20 weeks for amendments). You can submit Form 911 (Request for Taxpayer Advocate Service Assistance) or call 1-877-777-4778. Even if they can't expedite your specific case, they might be able to provide better status updates than the standard "Where's My Amended Return" tool. Worth a shot if you're dealing with genuine medical hardship!

I've been wrestling with this same issue for months and finally found a workable solution. The key insight is that the IRS seems to focus on whether you've maintained the custodial relationship, not necessarily who physically holds the keys. I ended up structuring mine through an SDIRA LLC where the custodian maintains administrative control and oversight rights, even though the LLC (which I manage as a fiduciary) holds the private keys. The critical documentation includes: 1. Custodial agreement that explicitly acknowledges the digital asset custody arrangement 2. LLC operating agreement with specific provisions about key management and custodial oversight 3. Regular reporting requirements to the custodian about asset holdings and transactions What differentiates this from McNulty is that the custodian retains legal authority over the assets and I'm acting as a fiduciary manager of the LLC, not taking personal possession. I also maintain detailed records showing all transactions require proper IRA procedures. The gray area is still concerning, but having proper documentation and maintaining the custodial relationship seems to be the safest approach until we get clearer IRS guidance. My attorney reviewed everything and feels confident it distinguishes from the McNulty fact pattern.

This is such a helpful discussion - I've been paralyzed by this exact issue for over a year! The multi-sig approach and LLC fiduciary structure both sound promising, but I'm curious about the practical costs involved. Has anyone calculated the total annual fees for these setups? Between specialized custodians, legal documentation, compliance reporting, and LLC maintenance, I'm wondering if the costs might outweigh the benefits compared to just using a traditional crypto-friendly custodian that holds the keys themselves. Also, for those who've implemented these solutions - have you had any actual interactions with the IRS yet, or is this all still theoretical? I'd love to hear if anyone has been through an audit or examination where these structures were actually tested. The peace of mind from controlling my own keys is important, but so is not getting hit with massive penalties down the road. Trying to weigh the risks versus the costs and complexity of these workarounds.

This thread is super helpful. Another advantage no one mentioned - asset protection. Having your LLC receive the K-1 adds another layer of protection between your personal assets and any practice liabilities. This is separate from malpractice concerns. I've had my LLC receive K-1s from two different medical groups for 5+ years without issues. The setup costs were minimal compared to the benefits.

Great discussion here! I'm also a physician looking into this structure. One thing I'd add is to make sure you understand the state-specific implications. Some states have different rules for professional LLCs or additional licensing requirements when a professional service is provided through an entity rather than directly by the individual. In my state (Texas), I had to register my LLC as a Professional Limited Liability Company (PLLC) and ensure it was properly licensed to provide medical services. This added some paperwork but wasn't a deal-breaker. The state medical board also had to approve the arrangement since technically the PLLC becomes the entity providing medical services. Also, regarding the vehicle expenses mentioned in the original post - this can be a significant benefit. I've been able to deduct 100% of my vehicle expenses for medical conferences, hospital visits, and practice-related travel through my PLLC, whereas as an individual I was limited to the unreimbursed employee expense deductions (which were mostly eliminated after 2017 tax changes). The key is having good documentation and making sure everything is properly structured from day one. Worth consulting with both a tax attorney and your state medical board before making the switch.

Has anyone successfully disputed a CP-2000 and had the amount reduced? Mine says I didn't report stock sales but I definitely included them on my Schedule D. I'm thinking maybe I made a typo on a cost basis or something?

I went through this exact same situation last year with a CP-2000 notice for about $1,800. The key thing to understand is that your online account showing $0 is completely normal - the CP-2000 is just a proposed assessment, not an actual bill yet. First, carefully review the notice to see exactly what income or deductions they're questioning. In my case, it was unreported 1099-MISC income from freelance work that I thought I had included but apparently miscategorized. If you agree with their assessment, sign the response form and either pay the full amount or set up a payment plan. If you disagree (even partially), gather your supporting documents and write a clear explanation of why their calculation is wrong. Whatever you do, don't ignore it! The 30-day response deadline is firm, but you can call the number on your notice to request an extension if you need more time to gather documents. I ended up agreeing with about 60% of their assessment after proving I had reported some of the questioned income correctly.