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I appreciate all the well wishes. Feeling great now, continuing the weight loss (intentionally), and antibodies were very high on the first test. Already have my first appointment to donate Convalescent Plasma at the Red Cross on Aug 10. Will be able to donate every 28 days as I understand it. Maybe my antibodies will help someone else recover.

They want to call their funds loans but in reality they have made capital contributions, which for tax purposes is the better way to go.

A little late responding, John glad to hear you and your wife are okay, unfortunately I personally know of the 15+ individuals that had it and some think they had it since early January 2020.

It's not your decision, though. The client has to make that decision. I'd probably let sleeping dogs lie and start payroll in 2020.

Most people who engage in this type of behavior on a grand scale can't resist bragging about it to their friends & associates. Somewhere in that crowd is often someone who isn't on board, who's worried about their own behavior, or who resent the fact that they weren't that "clever". So they retaliate by making a few phone calls to the relevant people. Or they hope to curry some favor so that their own issues might be overlooked. Anyone who's ever raised a teenager has probably seen this scenario play itself out in some way or another.

Kansas Karla - Your mind is trying to run everything together...like Judy says, Sit back and concentrate on these transactions one by one. The Uncle is not a related party, according to IRS definition. That is fortunate as it avoids other problems. Simply record a Notes Payable to the partnership for $100,000. At the time of this transaction, the amortization is irrelevant. So each partner then walks away with $50,000 each? Set up a "Loans to Partners" account (preferably 2 accts, one for each partner) for $50,000 each. At this point, neither partner has to pay tax because it is a loan. Going down the road, it becomes more complicated if these partners think the loan can sit on the books forever and them NEVER pay tax. This phenomenon is common and has consequences. There is a matter of imputed interest which affects the partners, and there can always be the IRS waiting in the wings to reclassify the loan as income if there are no characteristics that qualify as a loan. A loan has to be paid back, and if the borrower doesn't pay it back there are consequences. If you really want problems, just think of what happens if one partner pays back the loan and the other doesn't? Will this "uncle" stay uninvolved? If they can't pay the loan back, what makes anyone think they will be able to pay uncle back? There are personal problems with this whether there are problems in the books or not. Are you a preparer, or a bookkeeper, or just a friend trying to "help out"?

I have a few who won't pay estimates. I don't bother trying to explain estimates to them any more. But if they also have balances due (which they will by not paying estimates) AND go on extension, I do my above method of having them pay enough with the extension to cover 1Q and 2Q ES. That way, at least I have the year front-loaded for them and reduce P&I a bit. IF I can convince them to pay with the extension!