protip: check ur transcripts at exactly midnight on friday. thats when they usually update with new codes

Hang in there! I'm in the exact same situation - filed early with EITC and CTC, still showing 152 on WMR. From what I've read on other forums, the PATH Act hold should start lifting around Feb 15th, but it's really a gradual process. Some people get their 846 codes right when it lifts, others wait another week or two. The IRS processes these in batches, so it's not all at once. I'm trying to stay patient but it's tough when you're counting on that money! 🤞

One thing I don't see mentioned here is the importance of checking whether your fiscal year election is still valid if you've made any significant changes to your S-Corp structure. I learned this the hard way when I added a second shareholder to my S-Corp that had been operating with a June 30 fiscal year end for three years. The IRS required me to re-justify the business purpose for the fiscal year since the ownership structure changed. Apparently, when you have new shareholders, especially if they don't have the same "business purpose" justification, the IRS can revoke your fiscal year election and force you back to calendar year. I had to file a new Form 1128 and provide updated documentation showing that the business purpose still existed with the new ownership structure. It was a months-long process that I wasn't expecting. Just wanted to flag this for anyone who might be considering bringing on new shareholders or changing their S-Corp structure - make sure to verify that your fiscal year election will remain valid after any ownership changes.

This has been such an educational thread! I'm dealing with a fiscal year S-Corp (ending 12/31/2024) and was completely confused about the filing requirements until reading through everyone's experiences. One additional consideration I haven't seen mentioned is the impact on Section 199A deduction timing. Since S-Corp income passes through to shareholders' personal returns, and my fiscal year ends in December, I need to be extra careful about how the timing affects my qualified business income calculations on my personal return. For anyone else dealing with fiscal year S-Corps, I'd recommend creating a calendar that maps out all the key dates - fiscal year end, corporate return due date (with extensions), K-1 distribution deadlines, estimated payment due dates, and when shareholders need the information for their personal returns. Having this visual timeline has helped me stay organized and avoid the timing confusion that seems to trip up so many people with fiscal year elections. Also want to echo what others said about keeping documentation - I scan and save copies of my Form 1128 approval in multiple cloud storage locations after hearing these stories about having to produce it repeatedly for various business purposes.

I've been following this discussion and want to add one more perspective as someone who made this mistake early on. Beyond all the excellent points about tax complications and partnership issues, there's another practical problem nobody's mentioned yet. When you mix business funds with personal accounts, it becomes incredibly difficult to maintain clean financial records for your business. Banks don't distinguish between "personal use" and "business use" of funds in personal accounts - it's all just account activity to them. If you ever need to provide financial statements for a business loan, investor due diligence, or even just your annual tax preparation, having business funds flowing through personal accounts creates a documentation nightmare. You'll spend hours trying to separate legitimate business transactions from personal ones, and it looks unprofessional to potential lenders or investors. I learned this lesson the hard way when we tried to get a business line of credit. The bank wanted 12 months of business financial statements, and having to explain why our business income was scattered across personal accounts was embarrassing and ultimately hurt our application. Stick with a proper business HYSA - the slightly lower rate is a small price to pay for maintaining professional financial practices that will serve you well as your business grows.

This has been such a valuable discussion! As a newcomer to both business ownership and this community, I really appreciate everyone sharing their experiences and expertise. I'm actually facing a very similar situation with my photography business partnership - we have about $28k sitting in a basic business checking earning practically nothing, and I was seriously considering the personal HYSA route until reading through all these responses. The constructive distribution issue is what really opened my eyes. I had no idea that depositing business funds into my personal account could be viewed as me taking an unauthorized distribution that my partners would be entitled to match. That's exactly the kind of partnership conflict I want to avoid! Based on all the recommendations here, I'm going to start researching business HYSAs with Marcus by Goldman Sachs and Capital One. Even if I end up with 4.1% instead of the 4.6% my personal account offers, the peace of mind from proper documentation, tax compliance, and maintaining good partnership relationships is definitely worth that difference. Thanks to everyone who took the time to share their experiences - this community just prevented me from making what could have been a very costly mistake both financially and professionally!

Did you check box 2 on your W-4? That's the box for multiple jobs or spouse works. If you didn't check that, neither employer would know to withhold extra to cover both incomes.

Ana, I completely understand your panic - I went through something very similar last year! The good news is that with your dependent situation (especially filing as Head of Household with your daughter), you're likely in a much better position than you think. A few immediate things that should help ease your worry: 1. **You probably qualify for significant tax credits** - The Earned Income Tax Credit (EITC) can be substantial for single parents in your income range, plus the $2,000 Child Tax Credit for your daughter, and potentially a $500 credit for claiming her father as a dependent. 2. **Your effective tax rate is likely lower than you fear** - After the Head of Household standard deduction ($21,900 for 2024) and credits, your actual tax liability on ~$30K might be surprisingly manageable. 3. **The IRS has payment options** - If you do owe money, you can set up an installment plan when you file. They're generally very reasonable about this, especially for first-time situations. My advice: File as soon as possible to know exactly where you stand. Don't let fear keep you from finding out the actual numbers - it's probably not nearly as scary as you're imagining. And definitely update your W-4s for both jobs this year, making sure to indicate you have multiple jobs so proper withholding happens going forward. You've got this! 💪

Just wanted to add another important point that hasn't been covered yet - if you're dealing with CSED issues, make sure you understand the difference between the Collection Statute Expiration Date and the Assessment Statute Expiration Date (ASED). The ASED is typically 3 years from when you filed your return (or should have filed), and it determines how long the IRS has to assess additional taxes. The CSED is the 10-year period for collection that everyone's been discussing. These are completely separate timelines. Also, if you filed an amended return or the IRS made adjustments to your original return, each change creates a new assessment with its own 10-year CSED. So even if your original 2008 tax return's CSED has expired, if the IRS made an adjustment in 2015, that adjustment would have its own CSED expiring in 2025. This is why getting your Account Transcript is so crucial - it shows every assessment and adjustment, not just the original filing. Many people think their debt should be gone based on their filing date, but don't realize there were later assessments that reset the clock.

Mary, I understand how frustrating this situation must be after dealing with tax debt for so long. The 10-year Collection Statute Expiration Date (CSED) is real, but as others have mentioned, it's more complex than it initially appears. Given that your tax issues stem from 2008-2011 and it's now 2025, some of those debts may indeed have reached their CSED. However, the clock starts from the assessment date, not the tax year, and various actions can extend or "toll" the statute. Here's what I'd recommend as your next steps: 1. Request Account Transcripts for each tax year (2008-2011) from the IRS website or by calling 800-908-9946 2. Look for the assessment dates and any notations about tolling events 3. Calculate your actual CSED dates based on the assessment dates plus any extensions If you discover that some debts should have expired but are still showing as active, contact the IRS Collections department directly at 800-829-1040 and ask to speak with someone about Collection Statute Expiration Dates. Have your Account Transcripts ready when you call. The key is having the documentation to support your position. Without knowing your specific assessment dates and any tolling events, it's impossible to say definitively which debts should have expired. But given the timeframe you're dealing with, there's definitely hope that some of this debt may be legally uncollectible.