I've been following this thread closely and wanted to add my perspective as someone who just made the switch to Open Tax Solver this past season. Like many of you, I was initially hesitant about using open source software for something as critical as taxes, but the consistent accuracy reports and privacy benefits convinced me to give it a try. What really sealed the deal for me was doing exactly what several people here recommended - I downloaded it early and practiced with my 2022 return data before using it for real filing. This approach was brilliant because it let me get comfortable with the interface and verify that the calculations matched my previous year's professionally prepared return (they did, perfectly). The security aspect has been even better than expected. As someone who's increasingly concerned about data privacy, having complete control over my financial information feels so much better than uploading everything to cloud-based services. The local processing means my SSN and sensitive data never leave my computer unless I specifically choose to e-file through other means. One thing I didn't expect was how much more I'd learn about taxes themselves. Unlike commercial software that hides the complexity behind interview questions, Open Tax Solver requires you to actually understand what you're doing. I found myself reading IRS publications and really grasping concepts I'd never bothered to learn before. It's made me much more confident about my tax situation overall. For anyone still on the fence, I'd strongly recommend the practice run approach. Download it now, work through last year's data, and see how you feel about the interface and results. The worst case is you're out a few hours of time but gain some valuable tax knowledge. The best case is you find a solution that saves money, protects your privacy, and makes you more tax-literate. Pretty good risk-reward ratio in my opinion!

I've been using both commercial tax software and Excel spreadsheets for years, but this discussion has me seriously considering Open Tax Solver for the first time. What really catches my attention is how many people have done direct comparisons with paid preparers and commercial software - that's exactly the kind of validation I need to feel confident about accuracy. The privacy angle is huge for me too. I never really thought about how uploading all my financial data to cloud services creates potential security risks that I have zero control over. The idea of keeping everything local on my own computer while still getting professional-level calculations is really appealing, especially after seeing so many data breaches in recent years. I'm definitely going to try the practice run approach that multiple people have recommended. It seems like such a smart way to test the waters - download it now, work through my 2023 return to get familiar with the interface, then use it for real filing if I'm comfortable with the results. The learning curve sounds manageable, and honestly, becoming more knowledgeable about taxes instead of just trusting software to handle everything appeals to me. For those who've made the switch - do you find the time investment of learning the software pays off in subsequent years, or is it always going to be more time-consuming than commercial options? I don't mind spending extra time the first year if it gets significantly faster once I'm familiar with the workflow.

@Victoria Scott - Just wanted to add one more thing that might help with your budgeting question! Since you're filing for the first time, I'd recommend using the IRS "Where's My Refund" tool once you file. You can check it 24 hours after e-filing, and it gives you real-time updates on your refund status. Given that you're planning purchases around the refund timing, I'd suggest being conservative and not counting on the money until you actually see "Refund Sent" status. While 21 days is typical, first-time filers sometimes get flagged for additional review which can add a few weeks. Also, if you do qualify for EITC as others mentioned, that could be a nice bonus! For someone with your income level, it could be anywhere from $100-600 extra on top of your withholding refund. The free tax software will automatically calculate it for you when you file. One last tip - if you're really tight on the budget timing, consider filing as early as possible (IRS starts accepting returns in late January). The earlier you file, the faster you'll get your refund since there's less volume in the system.

One thing I haven't seen mentioned yet - make sure to keep all your tax documents organized for next year! Since this is your first time filing, you'll want to save copies of your W-2, your tax return, and any other documents you use. The IRS recommends keeping tax records for at least 3 years. Also, if you're planning to work similar hours next year and expect to be in the same income range, you might want to adjust your W-4 withholding as others suggested. That way you can get more of your money throughout the year instead of waiting for a big refund. Some people prefer the refund as forced savings, but if you're budgeting carefully like you seem to be, having that extra money in your paychecks might be more helpful for your monthly expenses. Good luck with your first filing experience! It sounds like you're being really smart about planning ahead.

As someone who's been through this exact nightmare, I want to reassure you that this is absolutely fixable and more common than you think. The fact that your 1120S hasn't been filed yet actually puts you in a much better position than many people who discover this issue after filing. Here's my recommendation based on personal experience and everything shared in this thread: **Go with the retroactive payroll approach - do NOT file showing all distributions.** Taking zero salary as an S-Corp owner who works in the business is one of the biggest audit red flags. The IRS has specifically targeted this because it represents lost payroll tax revenue. **Steps to take immediately:** 1. Contact a payroll service (ADP, Paychex, etc.) to set up backdated payroll for 2022 2. You'll need to pay both employer AND employee portions of FICA since you already took the money 3. File 941 forms for each quarter of 2022, even quarters with zero payroll 4. Include a brief letter explaining this was your first S-Corp year and you misunderstood the requirements **Expected costs:** Based on others' experiences here, expect penalties around 8-12% of the taxes owed. On your $18,500 salary, that's probably $1,000-1,500 in penalties. Painful but manageable. **Important:** Look into First Time Abatement after you file everything. Many people here got 50-60% of their penalties waived through this program. The upfront cost and hassle of doing this right will save you from much bigger problems if you're ever audited. Your future self will thank you for taking the time to fix this properly rather than cutting corners. Don't let your CPA talk you into the "easy" solution of showing all distributions. That's setting you up for audit trouble down the road.

I've been lurking here for a while and finally created an account because I went through this exact situation 6 months ago. Reading through all these responses brings back memories of my own panic! I want to add one practical tip that really helped me: when you're setting up the retroactive payroll, ask the payroll service to provide you with a "compliance timeline" document that shows exactly when each form needs to be filed and what the penalty structure looks like. This helped me understand the full scope before committing to the process. Also, regarding the First Time Abatement program that several people mentioned - make sure you request it in writing after you receive the penalty notices, not before. I tried to be proactive and request it with my initial filings, but the IRS told me they can only process abatement requests after penalties have been assessed. One thing I haven't seen mentioned is that you should also notify your state tax agency if applicable. Some states have their own payroll tax requirements and penalties that need to be addressed separately from the federal side. My total out-of-pocket ended up being about $1,800 ($1,200 in federal penalties + $600 in state penalties and interest) on $20k of salary, but I got about $700 back through First Time Abatement about 8 months later. The peace of mind was worth every penny. Morgan, you're going to get through this! It's scary when it's happening, but it's a very fixable situation if you act quickly and do it properly.

Make sure you mail it early! International/dual status returns take WAY longer to process. I sent mine last year on April 10 and didn't get my refund until August. The earlier you send it, the better.

I had a very similar situation last year as a dual status resident with temporary housing arrangements. After going through this confusion myself, I can confirm that you should mail your return to the Austin, TX international address since you listed a foreign address on your Form 1040. The key thing to understand is that the IRS routes returns based on what's written on the forms themselves, not your physical location when mailing. Since your 1040 shows a foreign address, the system expects it to go through international processing channels. A few additional tips from my experience: - Use certified mail with tracking as others mentioned - Include a cover letter explaining your situation if you want, but it's not required - Don't worry about the pay1040 discrepancy - the payment and return processing are handled separately - Expect 10-16 weeks for processing (mine took 14 weeks) The most important thing is to be consistent with what you put on your actual tax forms. Since you already listed the foreign address on your 1040, stick with the international mailing address. Good luck!

I'm in the exact same situation and this thread has been incredibly reassuring! Got my EIN in January for a small tutoring business, opened all the accounts, even printed flyers and business cards. Then I landed a position at a great company that's been keeping me way too busy to pursue the side business. I've been worried sick about whether I needed to file something even though I never made a single dollar or had any real business expenses. Reading all these experiences from people who actually called the IRS and got confirmation has been such a relief. The consistent message is clear: no business activity = no filing requirement. What really helped me understand it was that library card analogy - just because you have the card doesn't mean you checked out any books! I'm definitely closing my business checking account this week after seeing how many people mentioned potential issues with small fees or interest earnings. Thanks to everyone for sharing their real-world experiences. It's amazing how common this situation actually is and how much stress it can cause when you're just trying to do everything by the book!

This thread has been incredibly helpful for everyone dealing with unused EINs! I'm actually in a slightly different but related situation - I got my EIN in January and did start my freelance graphic design business, made about $1,200 over a few months, but then decided to shut it down when I got a full-time offer. Since I actually had some income and expenses (even though the business is now closed), I know I'll need to file a Schedule C. But reading everyone's experiences here really helped me understand that having an EIN doesn't automatically create ongoing obligations - it's all about the actual business activity that occurred. For those of you with truly zero activity, it sounds like you can rest easy based on all the professional advice and IRS confirmations shared here. The library card analogy is perfect! Thanks to everyone for sharing their real experiences - this kind of practical guidance is so much more valuable than trying to parse through IRS publications alone.