Corporate Contributions

. How K-1 Donations Work When a partnership or S-Corp makes a charitable donation, that donation "passes through" to you and is reported on your personal Schedule A (Form 1040). The Code: Box 13 (Code A) on Form 1065 or Box 12 (Code A) on Form 1120-S generally refers to cash contributions, which are subject to a maximum deduction of 60% of your total AGI. Aggregation: This 60% limit is not per K-1; it is per taxpayer. You must aggregate all donations from all K-1s plus any personal donations you made directly. 2. "60% K-1 / 40% Company" Myth Combined Limitation: If you have donations from K-1 Company A and K-1 Company B, all of those donations are added together, and the total deduction is limited to 60% of your personal AGI. Total Donations: If your total donations (K-1s + personal) exceed 60% of your AGI, you cannot take the full deduction in the current year. However, you can carry forward the excess amount for up to five years. 3. Key Distinctions Individuals vs. Corporations: If you are a partner (individual) in a partnership, the 60% AGI rule applies to you. If you are asking about a C-Corporation, that entity has different, generally lower, limitations (usually 25% of taxable income for 2020-2021, and returning to 10% afterwards). Qualified Contributions: Temporary rules (2020-2021) allowed for 100% deduction of AGI for certain cash contributions, but standard, non-emergency rules generally cap the deduction at 60% of AGI. 2026 Change: Starting in 2026, a new 0.5% AGI "floor" applies to itemizers, meaning you can only deduct the portion of your total donations that exceeds 0.5% of your AGI. Disclaimer: Tax rules regarding charitable donations and pass-through entities are complex. It is highly recommended to consult a tax professional to calculate your specific AGI limitations.

IRS Payment Plan

How to set up a payment plan with the irs To set up a payment plan with the IRS, you can follow these steps: Eligibility: Ensure you meet the eligibility criteria for the payment plan you wish to apply for. Short-term plans are for tax debts below $100,000, while long-term plans are for $50,000 or less in combined tax, penalties, and interest. 1 Application: You can apply for a payment plan online through the IRS Online Payment Agreement tool, by phone, or by mail. For online applications, you will need to create an IRS Online Account and provide identification and payment information. 1 Setup Fees: Be aware that setup fees may apply, especially if you apply for a payment plan by phone, mail, or in-person. 1 Payment Options: Choose from options like full payment, short-term payment plan, or long-term payment plan. Short-term plans are typically easier to set up and don't come with setup fees, but they accrue penalties and interest. Long-term plans are designed for individuals who owe $50,000 or less and come with a setup fee. 1 For more detailed information and to apply, visit the IRS Online Payment Agreement Application. 1

Received an IRS letter?

Do you owe the Irs the amount or not? The IRS is sometimes correct in their letters but can definitely overstate how much you owe. I have been to tax forums and they freely. admit they prepare the tax situation in their favor and it is up to the client to resolve