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I don't edit letters, but i checked the variable and it links to the voucher payment, which would be 1900 in my example, All the calculations show $1900, the scheduled withdrawals are for $1900, but the estimate letter is stuck on the erroneous $2,000. I think something got corrupted somewhere.

I assume they did this so they could have an EIN and not have to give out their Social Security numbers to all of these contests. In my state, you don't say how many members are in the LLC you're forming, but when they applied for the EIN, I'm guessing they did tell the IRS that they had multiple members, and the EIN letter says the IRS is expecting a 1065. Cheapest solution is to dissolve the LLC, form a new LLC and get a new EIN for a SMLLC that will be disregarded for tax purposes.

Do you know how to edit letters? If so, which variable is used in the estimate letter section?

Yeah, I sympathize I use Drake and I do my own manual calculations and override the system calculations.

I have a client who wants to cancel his june 16 scheduled estimated tax payments. He couldn't do it when he called the IRS as my letter to him specifying the scheduled payments differ from the actual calculation in the 1040es worksheet. For example, my letter says you have 4 payments of $2,000 and the calculations shows that the payments calculated on the 1040-es planner, are for a $1900. The $1900 was deducted from his bank account on April 15. This is strange. Has anyone else encountered this? I am now worried about any other clients that may have this issue. I have tried deleting the Federal Estimate Template, and then adding it back but, it persists in showing an amount different from the 1040-es calculation

Thank you!!

Discuss with your clients WHY they formed a MMLLC. And, if they should dissolve it to save the cost of preparing Form 1065 in the future. Did they watch a TikTok that told them they could write off anything in an MMLLC?!!

Thank you once again for your assistance!!

Sch 1 Line 8 j

That only works in a community property state. Otherwise, an MMLLC files Form 1065, unless they elect to be taxed as a corporation. If not entered into with a profit motive, follow the Hobby Loss Rules. How could $200,000+ ever be usual & necessary for revenue of $900, especially with NO profit motive?! Did they actually run their hobby income and expenses through the LLC bank account or LLC charge card? If they paid their hobby expenses personally and deposited their hobby income into their personal account, then you report their hobby income on Sch 1 line 8. Hobby expenses are NOT currently deductible until the sunset of the TCJA. (After the TCJA sunsets, if Congress doesn't change the law, hobby expenses will be deductible -- up to the amount of hobby income -- in the 2% miscellaneous section of Sch A.)

Room & Board does NOT qualify for the AOC, but it does qualify to make 529 Plan distributions non-taxable. Way too many details in all the different education benefits!!

The parents advise the funds were paid for fees, books, and supplies so it's a moot point although I see Kiplinger a tax publication I subscribe to advises room and board do not qualify.

I did some further reading and with what was provided by members here am pretty well satisfied I understand the matter. However, on one of my queries room and board was treated as an expense which qualify as a tax free use of scholarship funds.

You can't which is why it's advised to never scan one out in public.

Two Schedule C returns filed as a Qualified Joint Venture LLC.

On that theme, a favorite of mine is "THE IRS" without the space, is "THEIRS" and that's how they see it!

GOOD question and one reason I detest those %^&Y* things.

But not the Mark of the Beast, as that is both voluntary and includes some level of worship.

Strange that no part of North Carolina is on those releases. I just returned from Asheville, NC and the flooding there was the absolute worst on either side of the state line...

There is a particular schedule they want ES payments made, with specific percentages by Date X. Miss that, and there are underpayment penalties. For one year, you could protest based on unequal income (large distributions in December due to investments), but after a year or two, they will expect the taxpayer to expect those distributions. You could try the 2210 with unequal income distribution. I've used that a time or two for clients and gotten penalties waived. But it's not guaranteed. As for getting a refund, that's only dependent on the total paid. Think of it this way: client's total tax is $9,000, and as self-employed they make zero ES payments until January, at which time they pay in $10,000. They'll get a refund on tax, yes, but they will also have penalties for not having paid in anything the previous April, June, and September.

A 2 Member LLC was set up by our client as they travel around the country and dance. According to the LLC members, they feel their income ceiling is around $25,000 per year, if they do well. They have been dancing for many years as a fun hobby; this is a husband/wife thing. This year, $900 1099 received with expenses of $200,000+. They expect to NEVER have a profit. My understanding is that if there will NEVER be a potential for a profit, we deduct expenses to the extent of the income only. An LLC could be the chassis should they wish to file a 1065, but in reality, a Sch C would better serve the purpose. I have no comfort in filing a 1065 with a $200,000 expense against a $900 income when the taxpayer's have told me, in writing that they will NEVER turn a profit. I feel silly for even posting this but am looking to see if I am looking at this wrong, opinions or reference material please.

There have been a lot of disasters which postponed the deadline to November, but certainly not for everyone (so far https://www.irs.gov/newsroom/tax-relief-in-disaster-situations

Either they were paid late or if AGI over 75/150 110% was not paid.

https://rsmus.com/insights/tax-alerts/2025/irs-extends-tax-filing-deadline-for-taxpayers-in-tennessee.html

I don't see anything on my friend Google about a blanket change in the dates that estimates are due, nor do I see anything on the IRS website. I am getting my hair done tomorrow, I will ask my hairdresser.