If you haven't made any payroll payments, you can actually file Form 941 annually instead of quarterly by submitting Form 944. Might be easier for your situation until you start regular payroll.

Missed tax filings happen! I screwed this up when starting my S Corp too. Be sure to file that zero return ASAP. Quick tip - get a tax calendar app or set quarterly reminders so this doesn't happen again. The IRS has very specific due dates for S Corps that are easy to miss.

Just tried logging in after seeing your update and it's still not working for me. Getting the same error messages as before. Maybe it's only partially restored or working intermittently? I'm wondering if it's a regional server issue or something like that. What browser are you using and what time zone are you in? I'm on the East Coast using Chrome and still can't get through. Really hoping this gets fully resolved soon - I've got all my documents organized and ready to go, just need the system to cooperate! Thanks for the heads up though - gives me hope that they're at least making progress on the fix.

I've been dealing with this same issue since Friday! Really frustrating timing since I also blocked off this weekend specifically to get my taxes done. Based on what I'm seeing in this thread, it sounds like the system is having intermittent issues - some people are getting through while others aren't. I'm going to try the suggestion about accessing during off-peak hours, maybe very early morning or late evening when there's less traffic. In the meantime, I think I'll start organizing all my documents and maybe even fill out the PDF forms offline like someone suggested earlier. At least that way I'll be ready to go as soon as the system is fully stable again. Has anyone had luck reaching the IRS directly to get an estimated timeline for when this will be fully resolved? I saw someone mentioned they got through and were told 48-72 hours, but that was posted a day ago so hopefully we're getting close to the end of that window.

Make sure when they fix it that they don't automatically change your federal withholding allowances without talking to you. My company "helpfully" changed my withholding when I updated my marital status, and I ended up owing $2,300 at tax time because they reduced my withholding too much!

This is a great reminder to regularly check our pay stubs! I went through something similar about 5 years ago and discovered my employer had me listed as "single" when I was married filing jointly. Like others mentioned, I had been overwithholding significantly - probably gave the government an extra $150-200 per month in free loans. The correction process was pretty straightforward through HR, but I definitely second the advice about making sure they don't change other withholding settings without your approval. When they updated my marital status, they also reset my additional withholding to zero, which I had specifically set to cover some freelance income. Always double-check your first pay stub after any changes to make sure everything looks right! One thing that helped me was keeping a copy of my old W-4 so I could compare it to the new one they had me fill out. That way I caught the additional withholding change before it became a problem at tax time.

Has anyone used TaxAct or TurboTax to report something like this? I'm in a similar situation but trying to file myself and not sure which forms I need or how to enter it correctly.

I went through something very similar with my S Corp last year. Your accountant is absolutely correct - this is the proper way to handle it to maintain S Corp compliance. The key thing to remember is that S Corp distributions MUST be proportional to ownership, so you can't just give Jake $13,000 while keeping 50/50 ownership. What you're doing is essentially two separate transactions: 1. Equal distributions based on current ownership (50/50) 2. A sale of equity interest from Jake to you For tax purposes, Jake will have a capital gain/loss on the 2% he sold based on his basis in that portion. You'll establish a new basis in the 2% you purchased. One tip: make sure you have a written purchase agreement for the 2% ownership transfer with the purchase price clearly stated. This will help if you ever get audited and need to prove these were separate transactions. Also update your corporate records and operating agreement to reflect the new ownership percentages. It might seem complicated, but this approach protects your S Corp status while achieving the economic result you both wanted.

Is anyone seeing different estimated refund amounts between Credit Karma and the IRS Where's My Refund page? CK showed I should get $2,457 but the WMR tool says I'm getting $2,403. Not a huge difference but still concerning. Return was accepted Feb 10th and still processing.

I'm in a very similar situation - filed through Credit Karma on February 2nd, accepted February 9th, and still getting the "still being processed" message. It's been over 3 weeks now and I'm getting pretty anxious too, especially since I also need the money for an unexpected expense. What's frustrating is that Credit Karma estimated my refund at $3,124 but when I finally got through to check with the IRS, they said it would be $3,089. Not a huge difference but still makes me wonder what else might be off. I've been checking the Where's My Refund tool obsessively (probably not helping my stress levels) but it's the same generic message every time. At this point I'm just hoping it shows up in the next week or two. The uncertainty is the worst part - I can handle waiting if I know there's a timeline, but this limbo is killing me. Thanks for posting this - at least I know I'm not the only Credit Karma filer dealing with these delays!