I went through almost the exact same situation two years ago! Got a CP05a after accidentally submitting my previous year's 1099-MISC instead of the current year's form. The anxiety was absolutely overwhelming - I barely slept for weeks thinking I was going to face serious consequences. Here's what actually happened: I provided the correct documentation through my tax preparer, and the whole thing was resolved in about 10 weeks. The IRS simply adjusted my return based on the correct information, and I ended up owing a small additional amount plus some minimal interest. No penalties because it was clearly an honest mistake. The key things that helped me: 1) Having a tax professional handle the correspondence (which you already have), 2) Providing ALL requested documentation promptly and clearly labeled, and 3) including a brief written explanation of the mix-up with the corrected forms. Your situation sounds even more straightforward since you have legitimate business deductions and your husband's military status provides additional context for why documents might get mixed up during a cross-country move. The IRS sees this stuff constantly and can tell the difference between honest mistakes and intentional fraud. You're doing everything right by addressing it immediately. Try to focus on the fact that you caught the error and are fixing it - that's what matters most to the IRS.

I can really relate to the anxiety you're feeling - tax issues have a way of making everything feel catastrophic, even when they're actually quite manageable. What you're describing is a very common scenario that the IRS deals with regularly. One thing that might help ease your mind is understanding that the CP05a is really just an administrative step. It's the IRS saying "we need to verify some information" rather than "you're in trouble." The fact that you have professional representation and are responding promptly with the correct documentation puts you in a much better position than many taxpayers who ignore these notices. Since you mentioned you're overthinking and having anxiety attacks, it might help to set some boundaries around how much time you spend researching this online. Trust your tax professional to handle the technical aspects - that's what you're paying them for. Focus on gathering the documentation they need and let them manage the IRS communication. The combination of your husband's military service, the legitimate cross-country move, and your immediate response to correct the error creates a very clear picture of an honest mistake. The IRS has seen this exact scenario thousands of times, and they have established procedures for resolving it efficiently. You're going to get through this, and it's very likely to be much less dramatic than your anxiety is making it seem right now.

Quick tip for new S Corp owners: save 30-40% of ALL your profits in a separate account for taxes. Better to have too much saved than not enough! My first year with an S Corp I got KILLED with taxes because I didn't realize I needed to make estimated payments.

As someone who just went through this exact same confusion last year, here's what I wish someone had told me upfront: **For YOU personally:** Make quarterly estimated payments using Form 1040ES. You can pay online at irs.gov/payments. Set up an account and it's pretty straightforward once you find the "Make a Payment" section. **For the S Corp:** No quarterly income tax payments needed, but you DO need to handle payroll taxes if you're paying yourself a salary. Use EFTPS (Electronic Federal Tax Payment System) for employment tax deposits. **Estimating when you're new:** I used the "annualized income installment method" - basically, I calculated my tax liability based on actual income earned each quarter instead of trying to guess the whole year. Form 2210 has the worksheet for this. **Pro tip:** Open a separate business savings account and automatically transfer 35% of every deposit. This covers federal taxes, state taxes, and self-employment taxes on pass-through income. Adjust the percentage based on your tax bracket, but 35% kept me safe in my first year. The IRS has a pretty decent S Corp tax guide (Publication 589) that explains the pass-through taxation and salary requirements in plain English. Way better than trying to piece it together from random articles online!

This is such a common confusion point for new S Corp owners! I went through the exact same thing when I started my consulting business. The good news is you're absolutely right to be cautious about filing Form 941 prematurely. You only need to file it once you actually start paying wages to yourself or employees. The IRS won't penalize you for not filing when there are no wages to report. However, I'd strongly recommend following @Natalia Stone's advice about filing Form 8822-B to update your business information with the IRS. This will help prevent any automated notices down the road about "missing" quarterly filings. A few additional tips from my experience: - Keep detailed records of when you make your first wage payment - that's your trigger date for starting quarterly 941s - Consider consulting with a payroll service when you do start paying yourself - they can handle the 941s and state requirements automatically - Don't forget about state payroll tax registration requirements when you do start paying wages (varies by state) The waiting period while building your client base is actually a good time to get all these administrative details sorted out. You'll thank yourself later when the business picks up and you're juggling client work with compliance requirements!

As someone who recently went through the S Corp setup process myself, I can confirm what others have said - you absolutely do NOT need to file Form 941 until you actually start paying wages. The IRS guidance during setup can be misleading on this point. I was in your exact situation 8 months ago - LLC with S Corp election, no clients, no wages paid yet. I called the IRS directly (after waiting on hold for what felt like forever) and got confirmation that the Form 941 requirement only triggers when you make your first wage payment. A couple of additional points that might help: - Even though you're not paying wages yet, make sure you're still maintaining corporate formalities like keeping business records separate and having proper documentation - When you do start paying yourself, remember that S Corp owners must take "reasonable compensation" as W-2 wages before taking distributions - The annual Form 1120-S filing is still required even with zero income, so don't miss that deadline The Form 8822-B suggestion from @Natalia Stone is brilliant - I wish I had known about that when I was starting out. It would have saved me some anxiety about potential IRS notices down the road. Hang in there with the client acquisition! Once the business picks up and you start paying yourself, the payroll tax obligations will kick in naturally.

One additional consideration that hasn't been mentioned yet - if you received a 1099-MISC from the sawmill for the $3,100 payment, make sure the income is reported in the correct section of your tax return. Sometimes mills will report timber payments as miscellaneous income rather than proceeds from sales, which could cause the IRS computer systems to flag a discrepancy if you only report it on Schedule D. If you did receive a 1099-MISC, you'll want to report the full $3,100 as "Other Income" on your Form 1040 and then show the offsetting capital gain/loss calculation on Schedule D. This way the IRS sees that you've accounted for all reported income even though the net tax treatment is still as a capital gain. Also, since you mentioned this was partly an environmental response to an invasive species, you might want to check if your state or county offers any tax incentives for invasive species management on private property. Some jurisdictions have programs that provide credits or deductions for property owners who take proactive steps to control invasive pests, though these are typically separate from federal tax considerations.

As a tax professional, I want to emphasize a few additional points that could be crucial for your situation. First, make sure you're prepared for potential IRS questions about the fair market value of the timber. Since you received $3,100 from the mill, that establishes the fair market value, but if you're claiming any basis in the trees, you may need to substantiate that the timber was worth more than $3,100 before the pest damage. Second, consider keeping detailed records of the spotted lanternfly infestation in your area - photos, local government notices, extension service bulletins, etc. This creates a paper trail showing that your decision was based on legitimate environmental threats rather than market timing. Finally, since multiple neighbors participated, there might be economies of scale that affected the pricing. Make sure your individual allocation of both costs and proceeds is clearly documented and defensible. The IRS sometimes scrutinizes transactions involving multiple parties to ensure each person is reporting their fair share. One practical tip: if you're using tax software, you might need to manually override some entries since timber sales from personal property are relatively uncommon and the software might not handle all the nuances correctly. Consider having a tax professional review your return if the amounts are significant enough to warrant the expense.

Former US tax preparer who now lives in Italy here. One huge difference you'll notice in Europe is that most people don't file annual tax returns like we do in the States. Their systems are designed to take the correct amount throughout the year. In Germany specifically, they have something called "tax classes" (Steuerklassen) which determine how much tax is withheld based on your personal situation. For example, married couples can choose different combinations of tax classes that optimize their combined tax burden. Another thing: capital gains and dividend taxes work completely differently in most European countries compared to the US system.

Great question! I moved from the US to Germany about 3 years ago and can share some practical insights from my experience. One thing that really surprised me was how streamlined the German tax system is compared to the US. Your employer handles almost everything - they calculate your income tax, solidarity surcharge, church tax (if applicable), and all social contributions automatically. You get a monthly payslip that breaks everything down clearly. The social contributions others mentioned are significant - around 20% total split with your employer. This covers statutory health insurance (much better than most US employer plans), pension contributions, unemployment insurance, and long-term care insurance. No need to worry about finding affordable health insurance like in the US! One major advantage: you're unlikely to owe additional taxes at year-end or get a big refund like in the US. The system is designed to withhold the correct amount throughout the year. I only file a tax return (Steuererklärung) to claim additional deductions, and it's usually optional unless you have multiple income sources. Pro tip: Learn about "Werbungskosten" (work-related expenses) - you can deduct things like commuting costs, work equipment, professional development, etc. The standard deduction is €1,230, but if your actual expenses exceed this, it's worth itemizing. The higher tax rates are definitely noticeable, but remember you're getting universal healthcare, generous vacation time (minimum 20 days plus public holidays), strong worker protections, and excellent public transportation. When I factor in what I used to pay for health insurance and other benefits in the US, the difference isn't as dramatic as it first appears. Feel free to ask if you have specific questions about the transition process!