Small Business Tax & Bookkeeping Blog | Zero Fluff Books

Schedule K-1 reports an owner's share of pass-through tax items, not simply cash received. Distributions, basis, loss limitations, guaranteed payments, and separately stated items can all create differences.

A domestic LLC generally defaults to disregarded-entity treatment with one owner and partnership treatment with two or more owners, unless a valid election or special rule applies.

When your quarterly Form 941 filings don't reconcile with your annual W-2/W-3 totals or your deposits, the IRS notices — and the letters that follow are worth understanding.