I'm dealing with this exact situation right now with three different clients who just received their 2020 ERC refunds! It's such a relief to see this thread confirming the 60-day rule - I was really panicking about being outside the normal amendment window. One thing I wanted to add for anyone else in this boat: make sure you're also considering the impact on any state credits or deductions that were based on the original wage amounts. In my state (Illinois), we have some workforce development credits that are calculated based on wages paid, so the reduced wage expense from the ERC could affect those calculations too. Also, I've found it helpful to prepare a simple timeline document for each client showing: original return filed date, ERC claim filed date, ERC refund received date, and amendment filing date. This makes it crystal clear to the IRS that we're within the proper timeframe and helps support the correlative adjustment argument. Has anyone encountered situations where the client received partial ERC refunds over multiple dates? I have one client who got their 2020 ERC in two separate payments about a month apart, and I'm wondering if the 60-day clock starts from the first payment or if each payment gets its own 60-day window.

This thread has been incredibly helpful! I'm currently facing this same nightmare scenario with two of my S-corp clients who just received their 2020 ERC refunds - one for $28k and another for $51k. I've been losing sleep over this thinking we were completely out of luck with the 3-year amendment deadline having passed. The 60-day correlative adjustment rule is news to me, and honestly a huge relief. I'm definitely going to file the amended 1120-S and corresponding 1040-X returns ASAP. One additional consideration I wanted to mention - make sure to check if your client has any outstanding installment agreements or payment plans with the IRS. I had a situation last year where filing an amended return that increased tax liability affected an existing payment plan, and we had to contact the IRS to modify the agreement terms. Also, for anyone dealing with this, I'd recommend calculating the additional tax liability before filing so your client isn't surprised. The reduction in wage deduction flows through as additional taxable income on the K-1, which could push them into higher tax brackets or affect other deductions. Better to prepare them for the tax impact upfront than have an unhappy client later! Thanks everyone for sharing your experiences - this community is such a lifesaver for situations like these!

Quick tip from someone who got audited last year (not for mileage but other business expenses): Take photos of your odometer at the beginning and end of each day as additional proof. The timestamp and GPS data in the photos can help validate your written records. I use the free app Timestamp Camera which adds date, time and GPS coordinates right on the image. IRS agent actually commented that my documentation was "impressively thorough" lol.

Great discussion everyone! As someone who's been doing gig work for over 2 years, I wanted to add that consistency is really the key here. Whatever method you choose - whether it's a simple daily log, a mileage app, or detailed trip records - just stick with it throughout the year. I've found that the IRS cares more about having a regular system than having every single detail. Your current method of daily odometer readings is actually pretty solid, Connor. I'd just suggest adding the date, starting location, ending location, and "delivery driving" as the business purpose to each entry. One thing I haven't seen mentioned yet is that you should also track any miles driven to get your car serviced or maintained specifically for your delivery work. Oil changes, tire rotations, etc. that are necessary because of your increased business mileage are deductible too. Those miles add up over the year! Also, keep your records for at least 3 years after filing. The IRS has that long to audit, and having organized records makes everything much less stressful if they ever do come knocking.

As someone who's been through this exact situation, I completely understand your confusion! Yes, it's absolutely normal and necessary for your CPA to request your EFTPS PIN. They need it to make federal tax payments on your behalf - this includes quarterly estimated taxes, any year-end balance due, and if you have employees, payroll tax deposits. The EFTPS letter with your PIN is typically mailed to you automatically after you register your business and get your EIN, but sometimes they get lost in the shuffle of all the other paperwork new business owners receive. Don't worry - this happens more often than you'd think! If you can't locate your PIN letter, you have a few options: 1. Call EFTPS customer service at 1-800-555-4477 to request a replacement (takes 7-10 business days) 2. For immediate payments while waiting for your PIN, you can use IRS Direct Pay as a temporary solution 3. Your CPA may be able to help you set up alternative payment methods for urgent deadlines Just make sure your CPA has proper security measures in place for handling sensitive information like PINs - any reputable tax professional should have secure systems for storing client credentials. Don't hesitate to ask them about their data security practices if you have concerns!

I'm a tax professional and wanted to chime in to reassure you - this is completely standard practice! Your CPA absolutely needs your EFTPS PIN to handle your business tax obligations properly. When you registered for your EIN, the IRS should have automatically enrolled you in EFTPS and mailed you the PIN letter, but it's surprisingly common for new business owners to overlook or misplace this document among all the other paperwork. A few important points to remember: - Never share your EFTPS PIN via email or unsecured communication - Your CPA should have secure methods for storing and handling sensitive client information - If you can't find your original PIN letter, call 1-800-555-4477 to request a replacement - For immediate payment needs while waiting for your new PIN, you can use IRS Direct Pay for most business tax payments Also, make sure to keep that PIN letter in a secure location once you get it - you'll need it for ongoing tax compliance throughout the year, not just for quarterly payments. Consider making a secure digital copy as a backup. Don't feel bad about being confused - the tax system is complex and every small business owner goes through this learning curve!

Has anyone used TurboTax to do this amendment? Their interface keeps confusing me when I try to switch methods.

Yes, you can definitely amend your 2023 return to switch from actual expenses to standard mileage! This is actually a smart strategic move that many business owners don't realize they can make. The key rule is that you must use standard mileage in the FIRST year you place the vehicle in service for business to maintain flexibility between methods in future years. Since 2023 was your first year using this car for business, amending that return to use standard mileage will "reset" your election and give you the flexibility to choose either method going forward. You'll need to file Form 1040-X along with a revised Schedule C. Remove any depreciation, actual expenses, and Section 179 deductions you claimed for the vehicle, and replace them with the standard mileage deduction (65.5 cents per mile for 2023). Make sure you have solid documentation of your business miles for 2023 - mileage logs, calendar appointments, receipts showing business locations, etc. One important note: if you claimed any depreciation or Section 179 deductions on the vehicle, you may need to deal with depreciation recapture when switching to standard mileage. The calculation can get complex, so consider using tax software that handles amendments or consulting with a tax professional to make sure you get it right. You have until April 2027 to amend your 2023 return (three years from the original filing date), so you have plenty of time. But I'd recommend doing it sooner rather than later so you can plan your 2024 and future tax strategies accordingly.

I'm confused abt all this bc my friend who works as a actor deducts haircuts, makeup, headshots, etc. Is that different somehow? Why can she deduct those things if they're "personal" expenses?

The entertainment industry exception that Mia mentioned is key - but it's more nuanced than just being self-employed. Even self-employed people in most industries can't deduct regular haircuts and grooming as business expenses. For actors and performers, the IRS allows deductions for appearance-related expenses when they're specifically for a role or performance that requires a look significantly different from normal appearance. A regular business haircut still wouldn't qualify, but theatrical makeup, costume pieces, or specialized styling for a specific character might. The "ordinary and necessary" test is critical here - the expense has to be both common in your industry AND directly related to producing income. For most sales jobs, regular grooming doesn't meet this standard because maintaining basic professional appearance is considered a personal responsibility, not a specialized business requirement. If you're curious about your specific situation, I'd recommend getting professional advice since these rules can be tricky to navigate correctly.