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Looking at your transcript, that code 291 from November reducing your assessment by $656 is actually a good sign - it means the IRS made an adjustment in your favor. Combined with your $0 balance, it suggests they've finished their review work. The hold might be close to releasing since they've completed the adjustments. I'd expect movement on your refund within the next few weeks, especially since it's been months since the initial CP05 notice. Keep checking your transcript for any new codes!
Has anyone used both TurboTax Business and H&R Block Premium & Business for S-corps? Trying to decide which one to go with this year. I've been using TurboTax for personal returns but not sure if it's the best for S-corps.
I've used both. TurboTax Business is more user-friendly if you're not super familiar with business tax concepts - it asks more questions in plain language. H&R Block is a bit more technical but offers more flexibility for complex situations. If you're new to S-corps, I'd probably recommend starting with TurboTax Business.
This is such a timely question for me! My wife and I are in almost the exact same situation - she started an S-corp last year and we've always filed jointly for our personal taxes. One thing I learned that might help you is to make sure you're keeping really good records throughout the year, not just at tax time. We started using QuickBooks to track all the business expenses and income monthly, which made preparing the S-corp returns much easier. It also automatically categorizes a lot of transactions, so you're not scrambling to figure out what each expense was for when you're doing your taxes. Also, don't forget about quarterly estimated tax payments for the S-corp income! Since it flows through to your personal return, you might need to adjust your withholdings or make quarterly payments to avoid underpayment penalties. We got hit with that our first year because we didn't realize the business income would push us into a higher tax bracket. The reasonable compensation issue that Ravi mentioned is super important too. We ended up consulting with a CPA just for that piece to make sure we got it right, even though we did the actual tax prep ourselves.
Thank you so much for mentioning the quarterly estimated payments! I hadn't even thought about that aspect yet. Since the S-corp income flows through to our personal return, does that mean we need to calculate estimated taxes based on both our regular W-2 income plus the projected S-corp profits? And do we make those payments under our personal SSNs or does each S-corp need to make separate quarterly payments? This is getting more complicated than I expected, but I really appreciate everyone sharing their experiences!
To all those having trouble reaching a human at IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/_kiP6q8DX5c
Don't worry too much! The disappearing progress bars on Where's My are super common this time of year. When the bars disappear but you still see the processing message, it usually just means your return moved to a different stage or department - not necessarily a problem. Tax Topic 152 disappearing is also normal as returns progress through the system. That said, if it's been more than 21 days since you filed, it might be worth checking your account transcript on the website to see if there are any issues or holds. The transcript will show you exactly what's happening behind the scenes with codes and dates. If you're really concerned after checking your transcript, you can try calling the IRS, though wait times are brutal right now. Most of the time though, these changes are just part of normal processing. Keep checking WMR every few days for updates!
I think everyone is overlooking something important here. If you're using the van for personal trips just to "advertise" your business, that's not a smart financial move regardless of tax implications. The extra wear, tear and gas from unnecessary driving will cost you more than any potential business you might get from someone randomly seeing your van. Instead, consider parking your van in high-visibility areas during non-work hours. That way it's still "advertising" without adding miles or expenses. Or use that money to invest in proper advertising channels that actually target potential customers instead of random people on the road.
That's actually a really good point I hadn't considered. I've been so focused on the tax angle that I didn't think about the actual cost/benefit. The van gets way worse gas mileage than my personal car, so driving it more would definitely add up expense-wise. I like the idea of strategic parking instead - there's a busy shopping center near my house where I could potentially leave it during weekends. Would that potentially have any tax implications I should know about?
Strategic parking shouldn't have any special tax implications. It's still a business asset being used for business purposes (advertising). Just be careful about parking agreements - if you're paying for a spot specifically to display your vehicle, that would be a separate advertising expense you could deduct. One other thing to consider is insurance. Make sure your policy covers your van when it's parked in public places for advertising purposes. Some commercial policies might have restrictions or requirements for this kind of use. It would be painful to save on taxes but end up with an uncovered claim if something happened to the van while it was parked for advertising.
One thing to keep in mind is that the IRS has specific rules about what constitutes "ordinary and necessary" business expenses. If you start using your van significantly more for personal trips just to get your business seen, you need to be prepared to justify that the primary purpose is still business-related. I'd recommend keeping detailed records of any leads or business that actually comes from people seeing your van. If you get audited, having documentation that shows your mobile advertising strategy actually generated revenue will strengthen your case. Without that proof, the IRS might view excessive personal use as primarily personal rather than business, even with all the branding. Also consider that your business insurance might need to be updated if you're significantly increasing the mileage on your commercial vehicle. The cost of higher premiums could offset any tax benefits you're hoping to achieve.
This is excellent advice about documentation! I'm new to business vehicle deductions and hadn't thought about tracking actual leads from the van visibility. Do you recommend any specific methods for documenting this? Like asking new customers how they found me, or is there a more formal tracking system that would satisfy IRS requirements if questioned? Also, regarding the insurance point - should I be proactive about contacting my agent before changing my usage patterns, or is this something that typically gets addressed during policy renewal?
Dylan Evans
For what it's worth, I used Liberty Tax last year and they gave me a $50 Amazon gift card as a new customer bonus. The preparation was fine - nothing special but they didn't mess anything up. Total cost was around $220 for a fairly simple return. I think most of these places have similar "new customer" deals if you look around.
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Sofia Gomez
β’$220 for a simple return?? That seems really expensive. Was that including state filing too?
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Dylan Evans
β’Yes, that included both federal and state filing fees. You're right that it's not cheap - and honestly that's why I'm not going back this year. The $50 gift card was nice but when I looked at the total cost, I realized I could have done it myself for much less. I'm using one of the self-prep software options this year since my tax situation hasn't changed much. The "bonus" isn't worth the extra fees when you do the math.
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StormChaser
Pro tip: If you made under $73k last year, you can file for FREE through the IRS Free File program. Most people don't know about this! Go directly through the IRS website to find the participating providers. Much better than paying for tax prep just to get a small bonus!
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Dmitry Petrov
β’Is that the same as the free version that TurboTax advertises? I tried that last year but they kept trying to upsell me and eventually said I needed to pay because of my student loan interest form.
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