For e-filing Form 1120, I'd recommend FreeTaxUSA Business - they support C-corp filing and are significantly cheaper than most alternatives (around $150-200 vs $600+ for Drake). The interface is pretty intuitive and they have good QuickBooks import functionality. Regarding your shareholder payment situation, you definitely need to get this sorted before filing. Since C-corp shareholders who work in the business are considered employees, those "distributions" should have been processed as payroll with proper withholding. You'll likely need to file corrected payroll returns (941-X) and pay the missed payroll taxes plus penalties. One suggestion - consider consulting with an EA (Enrolled Agent) for just this first year to make sure you get the employment tax issues resolved properly. They're less expensive than CPAs but can represent you before the IRS if needed. Once you get the compliance issues sorted, you can handle future years yourself with the software.

Yes, FreeTaxUSA Business handles the complete e-filing process for Form 1120 - it's not just form preparation. They submit directly to the IRS and you get confirmation when it's accepted. I used them for our C-corp last year and the whole process was smooth. Definitely agree on getting an EA involved for the payroll tax cleanup. We had a similar situation with informal payments to founders, and our EA helped us file the 941-X forms and minimize penalties. The IRS was actually pretty reasonable about it since we were proactive in fixing the issue rather than waiting for them to discover it. One tip - when you do find an EA, make sure they have experience with startup employment tax issues. Some are more focused on individual returns and might not be as familiar with the nuances of C-corp shareholder-employee situations. The right EA can also help you set up proper payroll processes going forward so you don't repeat the same mistakes.

i feel u fam. got one last week and almost had a heart attack but it was just confirming my address change lmaooo

Hey! I totally get the anxiety - IRS letters can be super intimidating even when they're nothing serious. Like others said, you really need to open it to know what's going on. Most of the time it's just routine stuff like confirming info or asking for documentation. The notice number (usually CP### or LTR####) will tell you exactly what type it is. Once you open it, definitely post a pic with your personal info blurred out and we can help you figure out next steps!

Looking at your transcript, I can see why you're stressed - those are some significant adjustments! The key thing to understand is that codes 767 and 765 (your credit reductions totaling $5,080) happened back in April 2024, but your amended return wasn't filed until October 2024. That 6-month gap is likely what triggered the interest charge. The good news is that code 291 showing -$1,848 is actually money being credited back to your account (negative amounts are refunds on IRS transcripts). So while you lost $5,080 in credits, you're getting $1,848 back, making your net loss around $3,232 plus the interest. Since your amended return is still processing (the "forwarded for processing" status), there's still hope that some or all of those original credit reductions could be reversed if the amendment addresses whatever triggered them. The IRS usually reduces EIC when they can't verify income or dependent eligibility, so make sure your amended return includes all supporting documentation. I'd recommend calling the Practitioner Priority Service at 1-866-860-4259 if you can get a tax pro to call for you, or try the Taxpayer Advocate Service at 1-877-777-4778 - they're much better at explaining these complex situations than regular IRS customer service. Keep that reference number 43277-696-04828-4 handy when you call!

The timeline of events on your transcript tells a clear story of what happened. Your original return was processed normally, but then in April 2024 the IRS conducted an automated review that flagged issues with your Earned Income Credit and other credits, leading to those substantial reductions (codes 765 and 767). What likely happened is the IRS couldn't verify information like income amounts, filing status, or dependent eligibility during their post-filing review process. This is pretty common with EIC claims since they're heavily scrutinized due to fraud concerns. The fact that you filed an amended return in October 2024 suggests you discovered what caused the original adjustments and are trying to correct them. The 6-month gap between the credit reductions and your amendment is what generated that interest charge - the IRS considers the credits as "overpaid" from April onward until resolved. Here's what to watch for: Your amended return (reference 43277-696-04828-4) is currently being processed, which typically takes 16-20 weeks. If it successfully addresses the original issues, you could see those credits restored. The code 291 credit of $1,848 might be a partial adjustment while they work through your case. Keep checking your transcript weekly and definitely call the Taxpayer Advocate Service at 1-877-777-4778 - they can provide much clearer explanations than regular IRS phone lines. Stay patient, but stay on top of it!

Why not just setup an LLC and have the business buy the alcohol? Then its clearly a business expense and you personally arent drinking it, your business entity is providing it as part of the service?

As someone who's dealt with similar content creator tax issues, I'd strongly recommend getting professional guidance on this one. The IRS has very specific rules about entertainment expenses, and alcohol deductions are heavily scrutinized regardless of business purpose. While your situation is unique since you only drink for content creation, you'll still likely face the 50% limitation on these expenses. The key is proving business necessity - keep detailed records linking each purchase to specific streams, viewer engagement metrics, and revenue generated from that content. Consider also documenting that these venues/drinks are essential to your brand and audience expectations. If you can show that your audience tunes in specifically for this type of content and that removing alcohol would significantly impact your business income, that strengthens your case. But definitely consult with a tax professional who understands creator economics before taking any large deductions.

I just went through this exact situation with my small real estate agency last month! Got a CP2100A notice for filing property inspectors and appraisers on 1099-MISC instead of 1099-NEC forms. The IRS language is absolutely confusing - I must have read it five times before I understood what they were actually asking for. From my experience and what my tax preparer confirmed, you're interpreting the notice correctly. The CP2100A is essentially the IRS saying "heads up, there's a mismatch - fix it going forward." For 2023, you don't need to file corrected returns unless they specifically request it in a follow-up notice, which is rare for this type of form discrepancy. For the SSN typo, definitely keep that W9 on file as proof you used the information the contractor provided. The IRS recognizes good faith efforts based on documentation received. One thing that helped me avoid this issue for 2024 was going through my accounting software (I use QuickBooks) and updating the default 1099 settings. There was a preference buried in the contractor setup that still defaulted to 1099-MISC for all payments. I had to manually change it to automatically generate 1099-NEC for service providers. The timing of these notices is terrible - getting them almost a full year after filing when you're already preparing for the next tax season! But it sounds like this 1099-MISC vs 1099-NEC confusion is incredibly common as businesses are still catching up to the 2020 form changes. You're definitely not alone in dealing with this!

As someone who just joined this community and has been dealing with tax compliance issues for my small business, I wanted to thank everyone for sharing such detailed and helpful experiences with CP2100A notices. I'm currently facing a similar situation with my home improvement contracting business - we've been filing our subcontractors on 1099-MISC forms and just received our first CP2100A notice yesterday. Reading through all these responses has been incredibly educational and reassuring. The consensus seems clear: keep the notice on file, update systems to use 1099-NEC for service providers going forward, and don't stress about filing corrections unless specifically requested by the IRS. What really stands out is how common this issue is - it sounds like the 2020 form changes caught a lot of businesses off guard and we're all still adjusting. I'm particularly grateful for the practical tips about updating accounting software defaults and the mention of IRS Publication 15-A. Those actionable steps make this feel much more manageable than when I first opened that notice and panicked! Has anyone found that their relationship with contractors changed at all when switching to 1099-NEC forms? I'm wondering if there are any differences from the contractor's perspective when they receive the different form types for tax purposes.