Looking for Low Cost Interpretation of IRS Form in Los Angeles Area

October 30, 2024 1:42 PM

Several years previous I found out that i was general partner of my family's farm and have been for 38 years. I was informed that as a GP, I was entitled to % of profits. My mother passed a way early '23. This has forced the issue and I am assuming the farm has to get their books in order.

I received a 2023 tax form that lists share of income, etc. This is the first IRS form I've ever received and am unsure as to what the financial numbers mean.

Looking for assistance in this regard. I'm willing to pay regular CPA rates. Exploring low cost options first.

I live near Hollywood and am willing to travel

posted by goalyeehah to Work & Money (3 answers total)

One low-cost option that will be suggested is the TaxAide program run by AARP. I am part of the program, though not in your state. The issue is that we are quite limited in the types of income we can help with and are usually only open February - April. If you are only getting profits that can be treated as capital gains, we can usually handle that, but it will depend on the exact form number and letter and maybe even the box filled in.

Are you looking to talk to someone right now or for when you file your return next year? A 2023 form should be reported on your 2023 taxes. If they got the form to you this late, then you may have to file an amended return. My district will not amend returns unless we did the original return.
posted by soelo at 1:54 PM on October 30

If this is a Schedule K-1 then it's a "standard" thing as part owner of a business personal tax returns go, and any tax service should be able to handle it. Turbotax - the tier for business owners - can also handle this form/situation.
posted by zippy at 8:33 PM on October 30

You do not need to meet physically with your accountant. I have an accountant in another state who I have met just once, which was unnecessary. (They are a real firm and are licensed etc.) This reduces costs greatly for me (I live in an expensive state and they do not.)

You do, however, need an accountant here. Who is now doing the taxes for the farm's company itself? Who is paying for it? Are you receiving money? What is your cost basis for ownership if you are receiving distributions? Have you received distributions for all these years?

You sound extremely underprepared to face this (that's reasonable, and fairly normal, don't worry) and so having a real accountant who understands these kinds of businesses is a good idea. So, ideally:

* Mid-size firm, ideally located NOT in New York or California, etc.
* Understands LLCs, farms, and personal taxes
* Understands that you're a small account and starting from zero and won't charge you a million bucks to start making everything rational.

As always, the best referrals are from someone who is happy with and likes their accountants.
posted by RJ Reynolds at 6:20 AM on October 31