I've been following this thread with great interest as I'm currently dealing with a similar nightmare scenario. The IRS rejected my 2021 1120-S claiming they have no record of my Form 2553, despite having filed it properly and operating as an S-corp for years. What really caught my attention in this discussion is the combination of approaches mentioned - the systematic documentation requests (Business Master File Account Transcript, Form 4506-T) paired with the newer tools like taxr.ai for analysis and Claimyr for actually getting through to the right IRS department. I'm particularly intrigued by Hattie's point about requesting the complete account transcript. In my case, the IRS has been processing my quarterly employment tax returns as an S-corp for three years, but suddenly claims they have no record of the election for my annual return. This system inconsistency seems to be exactly what these transcripts would reveal. For dissolved entities like yours, I'd also suggest checking if your state has any pending tax issues that might be creating federal complications. In some cases, state-level entity problems can cause the IRS to question or override federal elections. The timeline pressure you're under makes this even more critical. Based on what I've read here, I'd probably pursue multiple approaches simultaneously - file for the transcripts and protective claim while using one of the callback services to get through to the Business Entity department directly. The worst thing would be to let deadlines pass while waiting for one approach to work.

I've been dealing with IRS entity classification issues for years as a tax professional, and this thread has some excellent advice. I want to emphasize a few critical points for your situation: First, the fact that your original 1120-S was accepted is huge evidence in your favor. The IRS has internal controls that should have rejected it immediately if there was truly no S-corp election on file. This acceptance creates what we call "administrative estoppel" - they can't now claim they never recognized your status when they previously processed returns based on that status. Second, since your company is dissolved, you're working against some strict deadlines. The IRS generally allows 3 years and 75 days from the original due date to correct entity elections, but dissolution can complicate this. I'd strongly recommend filing Form 9100 (Application for Extension of Time) immediately while you gather your documentation. This preserves your rights to retroactive relief even if the standard deadlines have passed. Third, beyond the excellent suggestions about transcripts and callback services, consider requesting a copy of your complete IRS file using the Freedom of Information Act (FOIA). Sometimes documents exist in the system but aren't showing up in standard searches. A FOIA request forces them to do a comprehensive search. The combination approach mentioned by others is spot-on - use the systematic documentation requests to build your case while using callback services to get to the right people who can actually resolve it. Time is your enemy here, so parallel processing is essential.

Did you check if they're withholding for things besides federal income tax? My big checks always look like they're withholding too much but then I realize they're also taking out Social Security (6.2%), Medicare (1.45%), state income tax, and sometimes local taxes too. All that together can easily push the total withholding percentage into the 20-30% range even if your federal rate is only 12%.

The $5,594.79 withholding on your $25,430.88 paycheck is likely correct if this includes bonus and backpay as you mentioned in your reply below. Here's the breakdown: supplemental wages (bonuses, backpay, commissions) are subject to a flat 22% federal withholding rate regardless of your actual tax bracket. This is an IRS requirement, not an error by your payroll department. So if your entire $25,430.88 was treated as supplemental wages, the federal withholding would be about $5,595 (22% × $25,430.88), which matches almost exactly what was withheld. You'll get back any excess when you file your 2025 tax return if your actual tax liability is lower than what was withheld. For future reference, regular salary is withheld based on your W-4 and projected annual income, but bonuses and other supplemental payments get the flat 22% treatment to simplify payroll processing.

I had this exact same confusion last year and it nearly cost me big time. To clarify the misunderstanding: your CPA might be confusing solo 401k rules with ESTABLISHING the plan itself. The plan needs to be established by Dec 31st, but only the employee contributions need to be completed by then. Employer contributions can definitely be made until your tax filing deadline (including extensions). I confirmed this with both the IRS and my provider (Vanguard in my case).

One thing nobody mentioned - if you're right against the deadline, consider doing an ACH transfer instead of a wire. With Schwab specifically (I have my solo 401k there too), they count the contribution based on when you initiate it, not when it settles. So even if it takes a couple days to process, as long as you start the transfer before the deadline, you're good. Just make sure to screenshot the confirmation page showing the date you initiated it, just in case there are ever any questions.

Don't make this harder than it needs to be! The food delivery apps should have sent you a 1099-NEC or 1099-K showing your income. Just report that on Schedule C. For the vehicles, if youre using standard mileage, you just track miles and multiply by the rate (65.5 cents per mile for 2023). no need to worry about all this complicated trade-in stuff unless your accountant says so!!!!

As someone who's dealt with business vehicle trades recently, I want to emphasize how crucial it is to get the depreciation recapture calculations right. When you trade in business vehicles, you need to account for any depreciation you've previously claimed (or deemed to have claimed with standard mileage). For your Honda Civic with 20% business use, you'll need to calculate the business portion of any gain/loss. Same with the Elantra at 85% business use. The key is determining your adjusted basis for each vehicle - original cost minus accumulated depreciation for the business portion. One thing that caught me off guard was that even with the standard mileage method, the IRS considers you to have taken depreciation based on the depreciation component built into the mileage rate. This affects your basis calculation when you dispose of the vehicle. I'd strongly recommend keeping detailed records of each vehicle's purchase price, trade-in value, business use percentage, and total business miles driven. You'll need all this information for proper reporting on your Schedule C and potentially Form 4562.

Has anyone here successfully used a vehicle under 6,000 lbs for a business deduction recently? What documentation did you need during tax time? My tax guy is telling me one thing but what I'm reading online is different.

Great question! I've been dealing with this exact situation for my marketing consultancy. You're absolutely right that vehicles under 6,000 lbs can still qualify for business deductions - just not the full Section 179 treatment that the heavy trucks get. For your photography business with 80% business use, here's what I've learned: **Standard Mileage vs. Actual Expenses:** - Standard mileage is simpler (currently $0.67/mile for 2024, likely similar for 2025) - Actual expenses can be better if you have a pricier vehicle or high maintenance costs - You can't switch between methods once you choose for a specific vehicle **Key things for vehicles under 6,000 lbs:** - Annual depreciation limits apply (around $19,200 first year max, then lower amounts in subsequent years) - You'll depreciate over 5 years using MACRS - Keep detailed mileage logs from day one - this is crucial for audits **My recommendation:** Run the numbers both ways before deciding. For a reliable crossover/sedan with 80% business use, actual expenses often work better than mileage if you're buying new or newer used. Also, consider timing your purchase - if you buy late in the year, you might want to wait until January to maximize your first-year deduction under the half-year convention rules. Document everything religiously - the IRS scrutinizes vehicle deductions heavily!