This thread has been incredibly helpful! I'm dealing with the exact same situation as the original poster. I have a single-member S-corp and was completely confused by the K-1 code changes this year. Based on what everyone's shared here, it sounds like I need to: 1. Create a Statement A that breaks down all my Section 199A components (business income, W-2 wages, qualified property) 2. Put "STMT" in Box 17 Code V to reference this statement 3. Make sure my tax software generates this automatically when I input the data I'm using TaxAct - has anyone used this software for the new K-1 format? Want to make sure it handles the Statement A generation properly before I file. The last thing I need is an IRS notice because I formatted something incorrectly! Thanks to everyone who shared their experiences and solutions. This community is a lifesaver during tax season.

As someone who's been through this exact maze with my single-member S-corp, I can confirm what everyone else has shared - the Statement A approach is definitely the way to go. I spent way too many hours trying to figure out the new coding system before finally getting it right. One thing I'd add that hasn't been mentioned yet: if you're using payroll software like QuickBooks or ADP for your S-corp wages, make sure the W-2 amounts you're reporting on Statement A match exactly what's on your actual W-2. I made the mistake of using a rounded number initially and it created a small discrepancy that my tax software flagged during the error check. Also, for anyone still struggling with this, the IRS has a decent FAQ buried on their website (Publication 1120-S instructions) that explains the Statement A requirements. It's not the clearest writing, but it does confirm that Code V should reference the statement rather than contain dollar amounts. The whole transition has been poorly communicated by the IRS, but at least we've all figured it out together! Thanks to everyone who shared their solutions - this thread should be bookmarked for next year's tax season.

Just wanted to thank everyone for the helpful responses! I was able to log into my IRS account and find the interest payment on my transcript using transaction code 776 like @Jade Lopez mentioned. It was exactly $14.23. For anyone else reading this thread, the transcript method really is the easiest way to find this information. I was overthinking it trying to hunt down that physical letter when the info was right there online all along. Now I can add it to my tax return properly. Really appreciate this community - saved me a lot of headache!

Great to see this thread helped so many people! Just wanted to add that if anyone is still struggling to navigate the IRS transcript system, there's actually a helpful guide right on the IRS website that walks you through each type of transcript and what information they contain. The Account Transcript is what you want for finding interest payments (transaction code 776), while the Record of Account Transcript shows a more detailed chronological view of your account activity. I made the mistake of looking at the wrong transcript type initially and couldn't find my interest payment. Also, keep in mind that if the IRS paid you interest in January-March of this year for a prior year refund delay, that interest is taxable income for the current tax year (2024), not the year the original refund was from. The timing of when you received the interest is what matters for tax reporting purposes.

This is such a common confusion point for new LLC owners! I went through the exact same thing when my business partner and I started our consulting LLC two years ago. The short answer is: with a standard two-member LLC (taxed as a partnership), you don't need formal payroll. You can take owner's draws as needed throughout the year. Just remember that you'll both be taxed on your 50% share of the business profits regardless of how much you actually take out. A few practical tips that would have saved me stress: - Set up a business bank account immediately and keep it completely separate from personal accounts - Track every draw you take (even a simple spreadsheet works) - Set aside about 25-30% of profits for taxes (self-employment tax is 15.3% plus regular income tax) - Consider getting an EIN from the IRS even if not required - it makes banking easier You'll each get a Schedule K-1 at tax time showing your share of profits/losses. The business itself doesn't pay income taxes, but you'll need to make quarterly estimated payments since no taxes are being withheld. Don't stress too much about getting everything perfect right away - you can always adjust as you learn! The important thing is to keep good records from day one.

Adding to the great advice already shared here - one thing that really helped us when we started our LLC was understanding the difference between "guaranteed payments" and regular draws. If you and your partner decide to take regular monthly amounts (like a salary), those are called guaranteed payments and get reported differently on your K-1s. But if you're just taking money out as needed based on cash flow, those are simple owner draws. Also, don't forget about the LLC's annual tax return (Form 1065)! Even though the LLC itself doesn't pay income tax, you still need to file this partnership return and issue K-1s to yourselves by March 15th (or get an extension). I learned this the hard way our first year when I thought we didn't need to file anything since "the LLC doesn't pay taxes." Pro tip: If your business has seasonal income fluctuations, consider making your quarterly estimated payments based on the "safe harbor" rule (pay 100% of last year's tax liability, or 110% if your AGI was over $150K). This helps avoid underpayment penalties even if your business income varies throughout the year.

I just went through this exact situation with my bakery business! The stress is real, but it's totally fixable. One thing I'd add to the great advice already given - when you contact your state's Department of Revenue about updating your Retail Merchant Certificate, ask them if they can expedite the process given your opening timeline. Many states have rush processing for situations like this, especially when you can show you have a legitimate business opening date. Also, create a master spreadsheet of everywhere you've used the old EIN (bank, vendors, state registrations, etc.) and systematically work through updating each one. I found it helpful to prioritize by importance - state tax registrations first, then bank accounts, then vendors. Some vendors are more flexible about EIN changes than others. Don't forget to update your business insurance policies too - they often reference your EIN and you want everything to match for coverage purposes. You've got this! Ten days is tight but definitely doable if you tackle it systematically.

I work as a tax consultant and see this EIN mix-up situation frequently with new business owners - you're definitely not alone! Here's something that might save you some time: before you start the update process with all your vendors and accounts, call the IRS Business & Specialty Tax Line at 1-800-829-4933 and ask them to link both EINs to your business in their system with a notation about the correction. This creates an official record that both EINs belong to you, which makes updating everything else much smoother. When you contact your bank, state agencies, or vendors, they can see in the IRS system that you legitimately own both numbers and are making a correction rather than potentially committing fraud. Also, for your 10-day timeline - most states allow you to operate temporarily under your existing RMC while the correction is being processed, as long as you've submitted the amendment request. Just make sure to keep copies of your submission for your records. The key is getting that paper trail established with the IRS first, then everything else becomes much more straightforward. You're being proactive about fixing this before it becomes a bigger issue, which is exactly the right approach!

Just want to add - since you're in Texas, at least you don't have to worry about state income tax on the distribution! I did something similar in California last year and got hit with both federal and state taxes plus penalties. It was brutal!

This is exactly why I always tell people to be super careful with 401k loans when changing jobs! The loan offset situation can create such a tax nightmare. One thing I haven't seen mentioned yet - if you haven't filed your return already, you might want to consider doing a partial rollover of the loan offset amount to an IRA before the tax deadline. Even though you can't roll over the cash portion you already received, you can still contribute the loan offset amount to an IRA (up to your contribution limits) and that portion won't be subject to the 10% penalty. You'd need to come up with the cash out of pocket to make the IRA contribution, but it could save you significantly on the penalty portion. Just make sure to mark it as a rollover contribution when you do it. A tax professional would be able to calculate if this makes financial sense based on your specific numbers.