Hey I've dealt with this exact situation. If your LLCs are just holding companies or consulting entities with no assets, you're in a much better position than most. One thing to consider is using IRS Form 966 (Corporate Dissolution or Liquidation) along with your final 1120-S returns. It's not technically required for S-Corps but can help document the dissolution properly. Also, your accountant's fee of $850 seems high for entities with no activity. Might be worth shopping around - I found an accountant who specialized in business closures and charged me $375 for my final S-Corp return with zero activity.

Just went through this exact process with my consulting LLC that elected S-Corp status. A few key points that might help: 1) You're absolutely right to be frustrated about the $850 fee for zero-activity returns, but unfortunately it's required. However, you can significantly reduce costs by doing some of the prep work yourself. Since you had no business activity, your Form 1120-S will basically be all zeros except for basic entity information. 2) For the EIN notification, I sent a simple letter to the IRS Business & Specialty Tax Line at the Cincinnati processing center. Include your business name, EIN, date of dissolution, and a brief statement that the entity has been dissolved. Keep a copy for your records. 3) Don't forget about your state requirements - many states require a final franchise tax return even with zero activity, and some have specific dissolution tax forms. The penalties for missing these can be worse than just filing them. 4) One money-saving tip: if both LLCs are in the same state and have similar structures, see if your accountant will give you a discount for preparing both final returns together. Mine knocked off about 20% for the second entity since most of the work was duplicated. The whole process is definitely a pain for inactive businesses, but better to close them properly than deal with ongoing compliance issues down the road.

Just to clarify about EFINs - the IRS has gotten a lot stricter about them. If you're a sole proprietor, you need to submit fingerprints with your application now (either electronically or by mail with the card they send you). And they're doing more thorough background checks. My coworker got delayed because of a 15-year-old misdemeanor that showed up in the background check. Also, if you're planning to prepare and file state returns, check if your state has additional requirements beyond the federal PTIN and EFIN. Some states have their own registration processes and continuing education requirements.

Great thread everyone! As someone who went through this process last year, I wanted to add a few practical tips: 1. **PTIN timing**: While Oliver mentioned PTINs are issued quickly online, be prepared for potential delays during peak application periods (November-January). I'd recommend applying ASAP to avoid any last-minute issues. 2. **EFIN considerations**: If you're just starting out with tax prep, consider whether you actually need your own EFIN right away. Many new preparers partner with established firms or use third-party e-filing services for their first season to test the waters before committing to the full EFIN process. 3. **State requirements**: Mikayla touched on this, but definitely research your state's specific requirements. Some states require separate registrations even if you have a CPA license. California, for example, has its own CTEC registration for non-credentialed preparers, though CPAs are exempt. 4. **Insurance**: Something not mentioned yet - consider professional liability insurance once you start preparing returns for compensation. Your CPA license might provide some coverage, but tax preparation has its own specific risks. Ashley, to directly answer your question: Yes, you need the PTIN regardless of your CPA status, and getting it now will absolutely cover you for the 2024 tax season. The EFIN is only if you want to e-file directly yourself.

I recommend taking a screenshot of your current WMR status and transcript, then check again in exactly 24 hours. That's typically when the system does its updates. If you see movement two days in a row, that's a really good sign that your return is actively being worked.

The disappearing notice and WMR update are definitely positive signs! I went through something very similar a few weeks ago - called for verification, notice vanished the next day, and WMR updated shortly after. My transcript stayed completely blank for about 5 days after that, which had me worried, but then boom - suddenly showed the 846 refund code and my money was in my account 2 days later. The transcripts really do lag behind everything else. Since the agent told you everything looked good and to wait 21 days, you're probably looking at getting your refund much sooner than that. Keep checking your transcript every few days but don't panic if it stays blank for a bit longer!

The tax preparation industry is like a restaurant that doesn't show prices on the menu until after you've eaten. The fees are almost certainly taken from your federal refund, not state. Think of it like this: the federal government is the big bank that allows third-party withdrawals, while most states are like the small-town credit union that doesn't allow such arrangements. If your state refund is lower than expected, it's probably due to a calculation error or a misunderstanding of your state's deduction rules.

Noah, as someone who's navigated this exact confusion before, I can tell you with confidence that preparation fees are almost always taken from your federal refund only. Most states don't allow third-party fee deductions from state refunds - it's a federal mechanism. Here's what you should do: Log into your tax prep service's online portal and look for a document called "Refund Processing Summary" or "Fee Disbursement Report." This will show exactly which refund the fees came from. If you can't find it online, call them directly - they're legally required to provide this breakdown. Your lower state refund is likely due to something else entirely. Double-check your state tax calculations, especially if you claimed any state-specific credits or deductions. Sometimes the software estimates don't account for all the state-level adjustments that happen during processing. The good news is that if fees were mistakenly taken from your state refund (which is rare), your tax prep company would need to refund that difference to you. But I'd bet money it's a calculation issue, not a fee deduction! 💰

Is there a quick way to estimate how much EIC I might get? I'm a single parent with 2 kids making about $32,000 from my job and some gig work.

Just to add some clarity for the original poster @Malik Johnson - since you mentioned you're a bartender with tips, make sure you're reporting ALL your tip income accurately. The IRS pays close attention to tip reporting in the service industry, and underreporting tips can not only get you in trouble but also reduce your EIC since it's based on your reported earned income. If your employer doesn't already track and report all your tips through payroll, you'll need to use Form 4137 to report unreported tip income. This includes cash tips that customers give you directly. Many bartenders don't realize that underreporting tips actually hurts them twice - once by potentially triggering an audit, and again by reducing credits like the EIC that they're entitled to. With your AGI being lower than your gross due to 401k and health insurance, you're in a good position for the EIC. Just make sure your tip reporting is accurate and complete!