Right now I'm using TurboTax Business for the partnership return and regular TurboTax for my personal. I looked through both and couldn't find any specific option for "incorrect 1099-NEC issued to individual instead of business." Do you know if TurboTax has this capability somewhere?

TurboTax isn't great at handling this specific situation. In TurboTax Business, you'll need to manually enter the 1099-NEC income as "income not reported on a 1099" since you technically don't have a 1099-NEC issued to the LLC. For your personal TurboTax return, you'll need to enter the 1099-NEC, but then add a negative "Other income" line on Schedule C with a description like "Income reported on Partnership Form 1065" to offset it. Make sure to include an explanation statement with both returns. If you're doing this more than one year, I'd honestly recommend switching to TaxAct or even paying a professional to use Lacerte, as they have specific workflows for this exact scenario.

I can share what happened to me. I didn't handle an incorrect 1099 properly in 2022 (just reported it on Schedule C), and I got a CP2000 notice from the IRS about a year later because the K-1 income from my partnership didn't match what they expected based on the 1099s. Took about 4 months and several letters to resolve. Not a full audit but definitely a headache.

I didn't receive any unemployment, but that's good info to keep in mind! I think based on other comments, it might be related to the W4 form changes and possibly my raise last year. Going to check with my HR department about updating my withholding.

Same here! I claimed 0 all year and ended up owing $175. My coworker had the same thing happen. I think there might have been some change to how taxes are calculated or withheld that a lot of us weren't aware of.

Interesting to hear others are experiencing this too. Makes me feel like it's not just something I did wrong. I'm going to look into updating my W4 with the new form like others have suggested.

This is such an important point! An amended return is for changing information already submitted, not just adding a missing form. When I filed an amended return unnecessarily, it triggered a review of the entire filing.

I tried that number multiple times last month for a 1065 question and never got through - always got the "call volume too high" message and got disconnected. What time of day did you call? Does that make a difference?

Thanks for this perspective! I just checked our W-4s online through our employers' portals and yep - neither of us had checked that "two jobs" box. Do you think it's worth trying to get an extension to file since we owe so much? And will we get hit with underpayment penalties?

You can absolutely file for an extension using Form 4868, which gives you until October 15 to file your return. However, it's important to understand that this is only an extension to file the paperwork, not an extension to pay what you owe. You'll still need to estimate and pay your tax by the regular deadline to avoid penalties and interest. Regarding underpayment penalties, you might avoid them if you meet one of the safe harbor provisions: if your withholding and estimated payments cover either 90% of your current year tax or 100% of your prior year tax (110% if your AGI was over $150,000). If you were getting refunds in previous years, you might qualify under the prior year tax safe harbor, but you should check your specific situation.

The online portal is perfectly fine to use for W-4 adjustments. For most people with two relatively similar-paying jobs (like married couples where both work), simply checking the box in Step 2(c) is the easiest approach. This basically tells your employer to withhold at the higher single rate rather than the married rate. If your jobs have very different salaries, or you have more than two jobs, the multiple jobs worksheet or the IRS withholding calculator will give you more accurate results. You'd enter an additional amount to withhold in Step 4(c) based on those calculations.

This is so helpful - I never thought about using my diagnosis as part of explaining the late filing. Do you have any tips on what specific wording worked for you? I'm worried about explaining it wrong.

Focus on how your specific symptoms impacted your ability to complete tasks like tax filing. In my letter, I explained how executive dysfunction made organizing financial documents overwhelming, and sensory processing issues made working with numbers for extended periods impossible during certain times. Be straightforward and factual. Something like: "Due to diagnosed ADHD and depression, I experienced severe executive dysfunction during [time period]. Despite my attempts, I was unable to organize financial information and complete tax filing processes. I am now receiving appropriate treatment and have implemented systems to ensure timely filing going forward." Attach a brief letter from your healthcare provider confirming your diagnosis and treatment timeline if possible. Keep it under one page total, and include your contact information and tax ID number on the letter.

That's not right. Form 843 is only for requesting abatement of certain penalties AFTER you've filed your return and received a penalty notice. It doesn't apply to unfiled returns. The OP needs to file their returns first, then address penalties if they receive a notice.