A bit off-topic, but for future reference - if you invest through certain EU brokers that have proper tax treaty implementation processes, they'll automatically withhold at the correct treaty rate (15% for Portugal) if you have your W-8BEN on file. I switched to IBKR specifically for this reason after having the exact same problem with my previous broker. Also, for Portuguese tax filing - make sure to include the foreign income in Anexo J of your IRS declaration. The Portuguese finanças can be very picky about how foreign tax credits are claimed!

I faced this exact situation last year as a US tax professional helping international clients. Here's what I recommend: 1. **Start with your broker first** - Request Form 1042-S and any withholding statements they can provide. This is often sufficient for most tax authorities. 2. **If you need IRS documentation directly**, you have two main options: - File Form 1040NR (even if you don't owe additional tax) to create an official record, then request a tax transcript - Submit a written request to the IRS for a "Letter of Certification" showing taxes withheld on US-source income 3. **For the written request**, include: - Copy of your broker statements showing dividends and withholding - Letter explaining you need proof of US taxes paid for foreign tax credit in Portugal - Your contact information and Portuguese tax ID 4. **Mail to**: Internal Revenue Service, Austin Service Center, International Returns Section, 3651 S Interregional Hwy 35, Austin, TX 78741 The process typically takes 30-60 days, but this documentation should satisfy the Portuguese tax authority's requirements for your foreign tax credit claim. Make sure to keep copies of everything you submit!

I've seen this pattern repeat every tax season for the past decade. In my experience working with various financial institutions, Wells Fargo specifically tends to not show pending deposits from the IRS until very early morning of the actual deposit date. I recall back in 2019 when I helped several clients with similar concerns - in every case, the money appeared on the DDD despite no pending notification. The IRS batch processing typically runs overnight between 12am-4am, and Wells Fargo's system updates around 3am-6am Eastern. If your transcript shows a valid 846 code with tomorrow's date, I'd recommend checking your account early tomorrow rather than worrying tonight.

I completely understand your anxiety - amended returns can make everything more complicated and stressful! Based on what others have shared here, it sounds like Wells Fargo's system just doesn't show pending IRS deposits until the very last minute. Since you filed an amended return on 1/15, I'd definitely recommend checking your transcript one more time tonight to make sure that 846 code with 2/28 is still there and no new hold codes appeared. If everything looks good on the transcript side, try to get some sleep and check your account first thing tomorrow morning around 6am. The IRS usually processes these overnight, and Wells Fargo updates early morning. Fingers crossed for you! 🤞

I went through this exact same situation last year and want to echo what others have said - don't panic, but definitely don't delay in fixing this properly. The retroactive payroll approach is absolutely the right way to go. I made the mistake of initially considering the "all distributions" route my CPA suggested, but after researching S-Corp audit triggers, I realized that would have been a huge red flag. Here's what worked for me: 1. Set up retroactive payroll immediately through a service like ADP or Paychex - they handle this situation regularly 2. Calculate both employer and employee FICA portions (you'll pay both since you already took the money) 3. File 941s for each quarter, even if some were zero 4. Include a brief, factual explanation letter with each filing stating this was your first S-Corp year and you misunderstood the requirements My total penalties ended up being about $1,200 on roughly $22k in salary that should have been processed through payroll. After requesting First Time Abatement (which took about 6 months to process), I got about 60% of the penalties waived. The peace of mind knowing my books are clean and compliant was worth every penny. Your CPA should understand that taking the extra time to do this right protects both of you from future audit issues. Don't let this stress you out too much - it's a very common first-year S-Corp mistake, and the IRS has processes in place to handle it. Just act quickly and do it properly!

As someone who's been through this exact nightmare, I want to reassure you that this is absolutely fixable and more common than you think. The fact that your 1120S hasn't been filed yet actually puts you in a much better position than many people who discover this issue after filing. Here's my recommendation based on personal experience and everything shared in this thread: **Go with the retroactive payroll approach - do NOT file showing all distributions.** Taking zero salary as an S-Corp owner who works in the business is one of the biggest audit red flags. The IRS has specifically targeted this because it represents lost payroll tax revenue. **Steps to take immediately:** 1. Contact a payroll service (ADP, Paychex, etc.) to set up backdated payroll for 2022 2. You'll need to pay both employer AND employee portions of FICA since you already took the money 3. File 941 forms for each quarter of 2022, even quarters with zero payroll 4. Include a brief letter explaining this was your first S-Corp year and you misunderstood the requirements **Expected costs:** Based on others' experiences here, expect penalties around 8-12% of the taxes owed. On your $18,500 salary, that's probably $1,000-1,500 in penalties. Painful but manageable. **Important:** Look into First Time Abatement after you file everything. Many people here got 50-60% of their penalties waived through this program. The upfront cost and hassle of doing this right will save you from much bigger problems if you're ever audited. Your future self will thank you for taking the time to fix this properly rather than cutting corners. Don't let your CPA talk you into the "easy" solution of showing all distributions. That's setting you up for audit trouble down the road.

Welcome to the working world! That tax shock is real and hits everyone hard on their first paycheck. A few things that might help explain what you're seeing: First, double-check your pay stub breakdown - make sure you're not confusing pre-tax deductions (like health insurance, 401k contributions, HSA) with actual taxes. These reduce your take-home but aren't technically "taxes." Second, your effective tax rate should be lower than 31% even as a single filer. At $58k, your federal marginal rate is likely 22%, but your effective rate (what you actually pay) should be closer to 12-15% once you factor in the standard deduction. If you're seeing much higher federal withholding, your W-4 might need adjustment. Also consider that your state matters hugely - if you're in a high-tax state like California or New York, combined with local taxes, 31% total withholding becomes more realistic. But if you're in a no-income-tax state like Texas or Florida, that percentage suggests something's off. I'd recommend waiting to see your second paycheck before making major changes, as others mentioned the first one can be calculated incorrectly. Then compare your actual withholding percentages to online calculators to see if adjustments are needed.

The sticker shock of that first paycheck is brutal, but you're definitely not alone in feeling overwhelmed by it! One thing I'd suggest is using the IRS withholding calculator on their website - it's free and can help you determine if your current W-4 settings are appropriate for your situation. Since you mentioned student loans, make sure you're aware that you can deduct up to $2,500 in student loan interest on your tax return, which effectively reduces your taxable income. While this doesn't directly affect your paycheck withholding, it's something to keep in mind when planning your finances. Also, if you're feeling like too much is being withheld, remember that it's better to get a smaller refund and have more money in your pocket each month than to give the government an interest-free loan all year. You can always adjust your W-4 throughout the year if needed - you're not locked into your initial selection. The good news is that once you get through your first year of working, tax planning becomes much more predictable. You'll have a better sense of your actual tax liability and can fine-tune your withholdings accordingly.

Quick question for anyone who's dealt with this - how long did the correction process take with the SSA? I have a similar issue but I'm worried about delaying my refund too long if I wait for the correction.

This exact same thing happened to me two years ago! The frustrating part is that everything looks correct on your end, but there's some tiny discrepancy in the SSA database that you can't see until you dig deeper. One tip that might save others some time - before calling SSA, try logging into your my Social Security account online first (if you can get past the ID.me nightmare). Your Social Security Statement will show exactly what birthdate they have on file. That way when you do call, you can immediately tell the rep "I see you have [wrong date] but it should be [correct date]" instead of going through the whole discovery process. Also, for anyone facing this close to the filing deadline - don't panic about using the "wrong" birthdate temporarily just to get your return accepted. The IRS doesn't care if your birthdate is factually wrong, they just care that it matches what SSA has. You can always fix the underlying SSA record later and your taxes will be fine. The whole system is frustrating but you're definitely not alone in dealing with this!