One thing to consider is audit support! I used Free Tax USA last year and got a letter from the IRS questioning some of my deductions. Free Tax USA's help section had exactly what I needed to respond correctly, but they don't provide direct representation if you get audited unless you pay extra for their "Audit Defense" add-on when you file. Not sure about Tax Slayer's audit support, but worth looking into if that's a concern for you!

I switched from TurboTax to Free Tax USA two years ago and haven't looked back! For your situation (W2, mortgage interest, student loan interest), Free Tax USA will handle everything perfectly. The interface is clean and straightforward - maybe not as hand-holdy as TurboTax, but honestly that's a good thing because you can see exactly what's happening with your return. One tip: make sure to take advantage of their free review feature before filing. It caught a small error I made entering my mortgage interest that could have delayed my refund. The state return fee ($14.99 in most states) is totally worth it compared to what you'd pay elsewhere. I've recommended it to several friends and family members, and everyone has been happy with the switch. The money you save can go toward something much more enjoyable than tax software!

I went through this exact same situation about 5 years ago with my manufacturing business. The good news is that this is more fixable than you might think, but you need to act strategically. First, definitely amend the open years (typically 2021-2023) to claim the amortization expenses you should have taken. This will generate refunds and establish a clear paper trail showing you're correcting the error. For the older years beyond the amendment window, create a detailed "tax benefit not received" file. Include copies of all original returns showing Form 4562 with the amortization alongside the Schedule C that didn't include it. When you eventually sell, this documentation will support adjusting your depreciation recapture calculations. One critical point - make sure your accountant understands this issue going forward. Many tax software programs require manual entry to transfer amortization from Form 4562 to Schedule C. It's not automatic in most systems, which is why this happens so frequently. Also consider having a tax professional review your other business assets for similar issues. If goodwill amortization wasn't flowing through properly, there might be other depreciation items with the same problem. Better to catch everything now rather than discover more issues later.

This is a really insightful thread - I'm dealing with a similar issue but with Section 179 equipment deductions that weren't properly flowing through to my Schedule C. Reading through everyone's experiences here has been incredibly helpful. One thing I wanted to add based on my research into this type of issue: when you're documenting everything for future sale purposes, make sure to also keep records of any depreciation schedules or asset tracking spreadsheets your business maintained. The IRS may want to see that you were consistently tracking the assets and their depreciation even if you weren't claiming the tax benefit. Also, for those mentioning the 481(a) adjustment approach - that's definitely worth exploring with a qualified tax professional. In my case, my CPA determined it was actually the cleaner solution since we had multiple years of similar errors across different asset categories. It allowed us to make one comprehensive adjustment rather than piecemeal amendments. The key lesson here seems to be that tax software automation isn't foolproof, and having a good system for reviewing how different forms connect to each other is crucial for business owners. Thanks to everyone who shared their experiences - this has been really educational!

This is exactly the kind of high-level S-corp planning that requires professional guidance. At $2.7M, you're in territory where small mistakes can be very expensive. One key point that hasn't been fully emphasized: the tax treatment is the same whether you take distributions or leave money in the S-corp - you'll pay personal income tax on all $2.7M regardless. The only real tax savings comes from the salary vs. distribution split, where distributions avoid payroll taxes. For your situation, I'd suggest getting a formal reasonable compensation study done before making any decisions. The IRS scrutinizes high-income S-corp owners much more closely, and having proper documentation of your salary determination could save you significant audit costs down the road. Also consider timing - if this is a one-time windfall vs. ongoing income, that affects what salary level would be considered reasonable. A business owner making $2.7M consistently would likely need a higher salary than someone who had an exceptional year due to a large contract or sale. The 37% federal rate is just income tax - you'll need to add payroll taxes on the salary portion, but those are capped for Social Security. Most of your income would only face Medicare taxes (2.9% combined) plus the 0.9% additional Medicare tax on high earners.

Great question about compensation studies and timing strategies! Formal reasonable compensation studies typically run anywhere from $2,500 to $8,000 depending on complexity and the firm doing the analysis. At your income level, this is definitely worthwhile insurance - I've seen audit settlements that cost 10-20x that amount. Regarding timing strategies, the pass-through nature does limit some options, but there are still planning opportunities. You can't defer the tax on S-corp income to future years since it all passes through in the year earned. However, you can time when you actually distribute the cash (separate from the tax obligation), and you might have some control over when certain income is recognized depending on your accounting method. For salary timing, you do have some flexibility - you could potentially adjust your salary up or down during the year based on how profits are tracking, as long as you end up with a reasonable annual amount. Some businesses pay higher salaries early in profitable years, then reduce them if profits don't materialize as expected. The key is having documentation for whatever approach you take. At $2.7M, you're absolutely in the zone where the IRS pays attention, so every decision should be defensible with clear business reasoning and market data.

I'm really sorry to hear about this situation - it's exactly the kind of inherited IRA mistake that can be financially devastating. Based on everything shared in this thread, you definitely have multiple paths forward and shouldn't give up. One thing I'd add to all the excellent advice already given: make sure you're working with a tax professional who specifically has experience with inherited retirement account issues. Not all CPAs or tax preparers are familiar with the nuances of inherited IRA rules and the various relief provisions available. Also, when you're documenting everything for your various complaints and relief requests, focus heavily on the fact that you explicitly sought professional guidance specifically because you wanted to avoid making mistakes with inherited accounts. This demonstrates that you acted reasonably and in good faith - you didn't try to handle complex retirement account transfers on your own, you hired a professional specifically to avoid errors. The combination of IRS relief procedures (Revenue Procedure 2020-46), FINRA complaints, potential E&O insurance claims, and state insurance commissioner involvement gives you multiple shots at recovering most of this money. Even if each avenue only partially succeeds, the combined effect could significantly reduce your financial exposure. Document every phone call going forward, save every email, and don't let Lincoln Financial or the advisor minimize this as a "simple misunderstanding." This was a fundamental error in retirement account handling that any financial professional should have known to avoid.

This is an incredibly frustrating situation, and I feel terrible that you're dealing with such a massive financial hit due to someone else's professional negligence. As someone who has navigated IRS issues before, I wanted to add a few thoughts to the excellent advice already shared. First, when you contact Lincoln Financial's compliance department, be very specific about the financial damages and timeline. Don't just say "the advisor made a mistake" - clearly state that their advisor's incorrect guidance has resulted in $30K in unexpected taxes and penalties that you would not have incurred if the transfer had been done properly as an inherited IRA rollover. Also, consider requesting a meeting with a supervisor or compliance officer rather than just submitting a written complaint. Sometimes having a live conversation where you can explain the full impact helps them understand the severity of the situation. They may be more motivated to find a resolution when they realize the scope of their advisor's error. One additional point about documentation - if you have any marketing materials, business cards, or website information where the advisor or Lincoln Financial promoted expertise in retirement planning or inherited accounts, save all of that. It strengthens your case that you reasonably relied on their claimed expertise. The fact that multiple people here have had success with various relief procedures gives me hope for your situation. This is clearly a case where professional advice led to an incorrect action, which is exactly what many of these relief provisions are designed to address. Don't give up - you have legitimate grounds for relief through multiple channels, and $30K is absolutely worth fighting for.

Has anyone considered the electric vehicle tax credits instead? With the new incentives in 2025, you might be better off buying an EV or plug-in hybrid rather than leasing a gas vehicle. Some of the credits are pretty substantial now and can significantly offset the purchase price.

Great question about Section 179 and leasing! I went through this exact dilemma last year with my consulting business. One thing that really helped me understand the difference was realizing that with leasing, you're essentially "renting" the vehicle, so the depreciation benefits stay with the actual owner (the leasing company). But don't let that discourage you from leasing - there are still solid tax benefits! Since you mentioned you typically don't keep cars longer than 3 years anyway, leasing might actually align well with your habits. With 50% business use, you can deduct 50% of your lease payments, plus 50% of gas, maintenance, and other vehicle expenses if you go the actual expense route. The timing question you asked is important too - yes, you can start taking deductions as soon as you begin the lease this year, but only for the portion of the year you actually had the lease. So if you lease in November, you'd get 2 months of deductions for 2025. One more consideration: have you looked into whether any vehicles you're considering qualify for the business use of electric vehicle credits? Sometimes the combination of lease incentives plus tax credits can be surprisingly beneficial, even without Section 179. Keep those mileage logs detailed - the IRS loves documentation on vehicle deductions!