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14 Has anyone noticed that FREETAXUSA sometimes hides forms in weird places? I had to file a Schedule C last year and spent like an hour hunting for it before I found it buried in a submenu.
15 I went through this exact same nightmare situation two years ago! My employer literally disappeared - office empty, phones disconnected, the works. Here's what I learned that might help your cousin: 1. **Document everything** - Keep records of all your attempts to contact the employer (emails, phone calls, etc.). The IRS may ask for proof that you tried to get the W-2. 2. **Check your Social Security account** - Go to ssa.gov and create an account. Your earnings should show up there even if you never got a W-2, which can help you get accurate wage amounts. 3. **Look at your final paystub carefully** - If she has ANY paystub from that job, it will show year-to-date totals that can help estimate the full year amounts. 4. **Bank statements are your friend** - Even without paystubs, your bank deposits from that employer can help reconstruct how much you actually received. The Form 4852 process in FREETAXUSA is actually pretty straightforward once you find it. Just be as accurate as possible with your estimates and keep all your documentation. I had no issues with my filing and the IRS never questioned it.
This is incredibly helpful! I didn't know about checking the Social Security account online - that's a great tip. My cousin might not have any paystubs at all since this employer was so sketchy, but the bank statement approach makes total sense. Did you have any trouble later when the IRS processed your return? I'm worried they might flag it for review since there's no matching W-2 in their system.
I've been dealing with IRS notices for years as a small business owner, and this Form 941 signature verification issue is becoming more common. What's happening is that when you e-file through a third-party service, the IRS sometimes can't verify that YOU (the business owner) actually authorized the filing - even though the service submitted it correctly. The LTR 3463C is actually a good thing - it means the IRS received your forms but just wants confirmation they came from you. This is especially common when you have irregular filing patterns (like only filing one quarter per year). Your brother-in-law should definitely sign and return the declarations, but I'd also recommend he contact his tax service to ask about adding electronic signature authorization for future filings. Many services now offer enhanced e-signature verification that prevents these notices from being generated in the first place. The key thing is not to ignore it - even though there's no penalty mentioned, the IRS could flag future filings if they don't get the verification they're requesting.
This is really helpful context! I'm actually new to dealing with business tax issues and had no idea that third-party e-filing could cause these signature verification problems. When you mention "enhanced e-signature verification" - is that something all tax services offer now, or do you have to specifically request it? I'm helping my elderly neighbor with her small business taxes and want to make sure we avoid these kinds of notices in the future.
@Jibriel Kohn Most modern tax services do offer enhanced e-signature verification, but it s'not always enabled by default. You ll'want to specifically ask about electronic "signature authorization or" PIN-based "authentication when" setting up the filing. Some services call it practitioner "PIN or" self-select "PIN. The" key is making sure the tax service captures your neighbor s'explicit authorization digitally rather than just filing on her behalf. This creates a clearer audit trail that the IRS can verify, which should prevent these LTR 3463C notices from being generated. For next year s'filings, I d'recommend asking the tax service to walk through their signature verification process before they submit anything. It s'a small extra step that can save a lot of headaches later!
This is such a frustrating situation, but unfortunately it's becoming more common with business tax filings. I've seen this exact issue with several clients - the IRS e-filing system accepts the return, but then their verification system flags it for manual signature confirmation later. The fact that your brother-in-law only files for one quarter per year is likely triggering an automated review. The IRS system expects consistent quarterly filings, so when it sees sporadic activity, it generates these verification requests as a fraud prevention measure. My advice would be to sign and return the declarations immediately, but also have him call the IRS business line to clarify his filing status. If he's truly a seasonal employer who only pays wages one quarter per year, he should formally request seasonal employer designation. This will prevent future signature verification notices and make his filing pattern look normal to the IRS system. The good news is that since there's no penalty mentioned in the LTR 3463C, this is purely administrative and won't negatively impact his business tax account once resolved.
This is really helpful advice about the seasonal employer designation! I had no idea that irregular filing patterns could trigger these automated reviews. As someone who's completely new to business tax issues, I'm wondering - is there a specific form or process for requesting seasonal employer status, or is it something you just discuss when you call the IRS? Also, does this designation affect anything else about how the business is treated for tax purposes, or is it purely for filing schedule purposes?
If u make under $12,950 in 2024, u might not even need to file a return at all if ur a dependent. But u should still file anyway to get any witholding back! And track all ur expenses, art supplies, software, part of ur internet bill, etc.
This isn't completely accurate. Self-employed people need to file if they make $400 or more net income, even if they're dependents. The $12,950 threshold is for regular W-2 income, not self-employment income.
Great thread! As someone who went through this exact situation a few years ago, I wanted to add a few things that really helped me when I was starting out as a freelance digital artist. First, definitely set up a separate bank account for your business income and expenses if you haven't already. It makes tracking everything so much easier come tax time, and the IRS loves clean records if you ever get audited. Second, don't forget about state income tax requirements! Even though your state doesn't charge sales tax on digital goods, you'll still likely owe state income tax on your freelance earnings. Each state has different thresholds and rules. Also, since you're tracking everything in a spreadsheet already, consider categorizing your expenses more specifically - things like "software subscriptions," "equipment," "professional development," etc. This will make filling out Schedule C much smoother and help you spot deduction opportunities you might miss otherwise. One last tip: if you end up owing more than $1,000 in taxes when you file, you'll definitely want to start making those quarterly estimated payments for next year to avoid penalties. The IRS doesn't like waiting until April to get their money! You're being really smart about getting ahead of this. Most freelancers I know (myself included) learned this stuff the hard way after making mistakes.
This is such helpful advice! I'm actually just getting started with freelance work myself and had no idea about the separate bank account thing. That makes so much sense for keeping everything organized. Quick question - when you say "professional development" as a category, what kind of expenses would fall under that? Like online art courses or tutorials? And do those actually count as legitimate business deductions even if they're helping me improve skills I already use? Also really appreciate the heads up about the $1,000 threshold for quarterly payments. I was worried I'd have to start making estimated payments right away even with smaller amounts.
I'm dealing with something very similar right now and this thread has been incredibly helpful! Just wanted to add that if you paid through Direct Pay, you can actually look up your payment confirmation online at IRS.gov/payments even if you don't remember your confirmation number. You just need your SSN, payment amount, and the date you made the payment. I found my confirmation there and it showed that my payment was processed but somehow got applied to the wrong form type (they put it toward estimated taxes instead of my 1040 balance due). The confirmation page actually has a "Print" option that gives you an official-looking document with all the payment details that you can include with your response. One thing I learned from calling (after waiting 2 hours) is that if you respond in writing to the CP14, they're supposed to put a hold on any collection activity while they investigate. The agent told me to write "PAYMENT INQUIRY" at the top of my response letter in big letters so it gets routed to the right department faster. Also, if you're really stuck and the online account doesn't show your payment, try calling the automated payment line at 1-888-353-4537. You can check if your payment was processed without having to wait for a human agent.
This is such valuable information! I had no idea you could look up payment confirmations on the IRS website without the confirmation number. I've been frantically searching through my emails trying to find mine. The tip about writing "PAYMENT INQUIRY" at the top is really smart too - anything that might help get it routed faster sounds good to me. I'm definitely going to try the automated payment line first before attempting to reach a human agent. Thanks for sharing all these specific steps and phone numbers! It's so much better than just being told "call the IRS" without any guidance on which number to actually call.
This is incredibly stressful but you're definitely not alone in dealing with this! Based on all the great advice here, I'd recommend a multi-pronged approach to get this resolved quickly. First, definitely create that online account at IRS.gov if you haven't already - you might be able to see exactly where your payment ended up. Sometimes it's as simple as it being applied to the wrong tax year or form type. Second, gather ALL your documentation now - bank statement showing the withdrawal, any confirmation emails or numbers, screenshots of your online banking, everything. Make copies (never send originals) and respond to that CP14 notice in writing within their deadline. Write "PAYMENT INQUIRY" at the top like Mateo suggested. Third, try that automated payment line at 1-888-353-4537 to verify your payment was processed before trying to reach a human agent. The most important thing is to respond within their timeframe even if it's just to say "I already paid, here's my proof" - this should put a hold on any collection activity while they investigate. I know it's frustrating when you KNOW you paid, but based on everyone's experiences here, this does get resolved once they locate your payment in their system. The IRS processing systems clearly have issues matching payments correctly, especially around filing deadlines. Hang in there!
Leila Haddad
I'm currently using Justworks for my S Corp payroll and it's been solid for about 18 months now. They're around $49/month plus $8 per employee, so a bit pricier than some options mentioned here, but they include workers' comp coverage which is nice. What I really like is their dashboard makes it super easy to see exactly what's being filed and when. They handle all federal and state filings automatically, plus they have really responsive customer support when you need help. One thing to consider - if you're planning to add employees soon, look at services that offer benefits administration too. I started solo but added two part-time contractors last year, and having everything in one platform made the transition seamless. Also seconding what others said about not trying to DIY the payroll. The S Corp requirements are way more complex than regular contractor payments, and the penalties for messing up aren't worth the savings.
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Oliver Fischer
ā¢Thanks for the Justworks recommendation! I hadn't considered the workers' comp aspect yet, but that could definitely be valuable as I grow. Quick question - does their $49 base fee include all the tax filing services, or are there additional charges for things like quarterly 941s and W-2 preparation? I'm leaning toward starting with something simpler like OnPay or Wave since it's just me right now, but it's good to know about options that scale better if I do add employees soon. The benefits administration feature sounds really useful for that transition.
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Ev Luca
I've been using Gusto for my S Corp for about 3 years now and while their pricing has definitely increased, I still think they offer good value. Currently paying around $45/month plus $6 per person for the base plan that handles all the federal and state filings. What I really appreciate about Gusto is their user interface - it's incredibly intuitive and they send clear notifications before every deadline. They also have great educational resources that helped me understand S Corp payroll requirements when I was starting out. One tip for anyone just getting started: make sure whatever service you choose can handle your state's specific requirements. Some of the cheaper options don't support automatic state unemployment filings in all states, which can leave you scrambling. Also agree with others here about not going the DIY route. I made that mistake initially and the stress of worrying about compliance issues wasn't worth the cost savings. A good payroll service pays for itself just in peace of mind.
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Daniel Rivera
ā¢Thanks for the Gusto update! It's helpful to know their current pricing since I was seeing conflicting info online. $45/month is definitely more than I was hoping to spend starting out, but if the interface is that user-friendly it might be worth it to avoid headaches. You mentioned they have good educational resources - do they provide guidance on reasonable compensation amounts for S Corp owners? That's one area where I'm still pretty confused about what I should be paying myself versus taking as distributions. Also curious about their state filing coverage - I'm in California which tends to have more complex requirements than other states. Have you had any issues with their state compliance handling?
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