Honestly, as someone who prepares returns for a living, sometimes the 20+ hour S-Corp returns come down to the clients themselves. Some clients dump unsorted bank statements, unreconciled QuickBooks files, and folders of receipts on you and say "figure it out." If I have to sort through personal and business expenses, fix misclassifications, chase down missing documents, and essentially do a year's worth of bookkeeping before I can even START the tax return... yeah, that can easily push the hours way up.

This thread really opened my eyes to how complex S-Corp returns can get! I'm a small business owner considering converting from sole proprietorship to S-Corp for the self-employment tax savings, but now I'm wondering if I'm prepared for the compliance burden. My business is relatively simple - freelance consulting with maybe $150k in revenue, home office, some equipment purchases, and travel expenses. Would an S-Corp election make sense for someone at my level, or am I better off staying as a sole proprietor until I grow larger? The idea of 20+ hour tax prep sounds terrifying, but from what I'm reading here, it seems like that's mainly for much more complex situations with multiple shareholders, messy books, or multi-state operations. Am I understanding this correctly?

Has anyone used TurboTax for Form 5471? I'm in a similar situation and wondering if the software can handle this complexity or if I need to find a specialized accountant.

I went through something very similar with my Australian startup last year. One thing that really helped me was creating a timeline document showing exactly when my ownership percentage changed and when I stepped down as director. The IRS wants clear documentation of these status changes. For your situation, since you were both a director AND owned >10% at the start of 2024, you'll definitely need to file for the portion of the year when you met Category 3 requirements. The key is being very precise about the dates - when exactly did your ownership drop below 10%? When did you formally resign as director? These dates determine your filing period. Also, don't forget about the potential penalties for late filing - Form 5471 has some of the harshest penalties in the tax code ($10,000+ for late filing). If you're cutting it close to the deadline, consider filing for an extension while you get everything sorted out. One last tip: keep detailed records of the share transfer transaction. The IRS may want to see the corporate resolutions, share certificates, or other documentation proving the ownership change actually occurred.

This exact thing happened to me last year! The IRS will automatically mail you a paper check to your address on file - no action needed on your part. It typically takes 3-4 weeks from when the direct deposit was rejected. Your transcript should update with a new 846 code showing the check mailing date once they process it. Since you're seeing the 971 code, they're aware of the issue and working on it. The fact that it's only been 10 days means you're still well within the normal timeframe. One thing to double-check: make sure the IRS has your current mailing address. You can verify this on the IRS website or by calling them. With medical bills coming up, I know the wait is stressful, but the check should arrive soon. Hang in there!

I went through this exact situation in 2023 when my credit union closed my account due to inactivity right before my refund hit. The whole process was incredibly frustrating, but here's what actually happened: The IRS automatically issued a paper check about 3 weeks after the rejected deposit. Like others mentioned, you'll see a new 846 code on your transcript when they actually mail it out. Since you're only at 10 days and already see the 971 code, you're right on track. One thing I wish someone had told me - make absolutely sure your address is current with the IRS. I had to file a Form 8822 to update mine because I had moved recently. You can check your address on file by creating an account on the IRS website. The $3,700 check will come via regular mail, not certified or anything special, so definitely sign up for USPS Informed Delivery if you haven't already. That way you'll know it's coming before it hits your mailbox. I know waiting sucks when you have medical bills breathing down your neck, but the system works - it's just painfully slow. Hang in there!

Quick heads up - I went through something similar and discovered there's a difference between a "dormant" corporation under Rev Proc 97-20 and an "inactive" one. Dormant means NO activity whatsoever during the tax year. If you had ANY financial transactions related to closing the company (paying final fees, receiving any distributions, etc.), you might not qualify for the simplified filing. I thought my UK company was dormant during its dissolution year, but the fees I paid to dissolve it counted as activity, which meant I needed to file the full 5471 rather than the simplified version. Might be worth double-checking if your dissolution process involved any financial transactions.

Based on all the discussion here, it's clear your new accountant is correct - you do need to file a final Form 5471 for 2023 when you dissolved your Thai corporation. Your first accountant gave you incorrect advice. Since this involves a dissolution, you'll need more than just the Rev Proc 97-20 simplified filing. You'll need to file a complete Form 5471 with the "Final 5471" box checked, plus Schedule O to report the disposition of your interest in the corporation. Depending on your specific situation, you may also need Schedules B, E, and potentially others. The key thing to remember is that dissolution almost always involves some financial activity (legal fees, final filings, etc.) which disqualifies you from the simplified dormant corporation filing anyway. Even if those costs were minimal, any activity during the tax year means you need the full form. Don't delay on this - the $10,000+ penalties for missing Form 5471 are no joke, and they apply regardless of whether the corporation had significant activity. The IRS takes international reporting requirements very seriously. Get this filed as soon as possible, and make sure whoever prepares it marks it as a final return to avoid future filing obligations.

Filed Jan 20th and still waiting here too! Been checking the MN Revenue site daily and it just keeps saying "being processed." Starting to wonder if there's an issue with my return or if they're just really backed up this year. Anyone else filed around mid-January still waiting? Trying to figure out if I should be worried or just patient at this point 😅

Filed mine January 31st and got my refund deposited this morning! 🎉 Took about 5 weeks total which seems to be pretty typical based on what I'm seeing here. For those still waiting - I know it's frustrating but hang in there! The processing really does seem random this year. I was checking the status obsessively too but it updated overnight from "processing" to "refund sent" without any warning. Good luck everyone!