I just went through this exact situation last year. Here's what I'd recommend: 1. File the 1120-S for your S-Corp (due March 15) 2. Report the expenses as business losses 3. Those losses will flow through to your personal return via K-1 4. For affordable filing, check out TaxHawk - I paid about $45 for my S-Corp return One other thing to consider - since you never actually did business, you might want to formally dissolve the S-Corp to avoid ongoing filing requirements and fees in future years. Otherwise, you'll need to file annual reports with your state and tax returns every year even if the business remains dormant.

I'm dealing with a very similar situation right now! Started an LLC in late 2024 for what I thought would be a lucrative consulting opportunity, spent around $2,800 on setup costs, professional development, and travel to meet potential clients. Then the whole thing fell through when the client's budget got cut. One thing I learned that might help you - make sure you're documenting the business purpose for all those expenses, especially the travel. The IRS wants to see that you had a genuine profit motive, not just wishful thinking. Keep emails from the client, meeting notes, anything that shows you were pursuing legitimate business opportunities. Also, definitely don't skip filing just because you didn't make money. Those losses can actually be really valuable for reducing your overall tax burden. I know the business tax software is expensive, but think of it as an investment that could save you hundreds or even thousands on your tax bill through those loss deductions. Have you considered whether you want to keep the S-Corp active for next year, or would it make more sense to dissolve it if the business opportunities don't materialize?

The IRS Authentication Protocol for in-person verification requires biographic verification (your ID) and residential verification (proof of address). The standard procedure allows for documentation discrepancies if you can provide supplementary evidence. A utility bill, bank statement, or lease agreement with your current address should suffice as secondary verification. The verification threshold is typically met with two concordant documents, even if your primary ID shows a different address.

I went through this exact situation in January 2024! My driver's license showed my old college address but I filed my return with my current work address. The verification agent was completely understanding - they see this all the time, especially with young professionals who move frequently. I brought my lease agreement, two utility bills, and a bank statement all showing my current address. The agent barely blinked at the mismatch and said "happens every day." The whole appointment took maybe 20 minutes. One tip: organize your documents beforehand in a folder - it shows you're prepared and makes the process smoother. Don't stress about this, you'll be fine!

Has anyone had luck with state efiling for prior years? I know the IRS doesn't allow it, but I'm wondering if some states might have different rules? I'm in California if that matters.

I went through this exact same situation last year! Unfortunately, as others have mentioned, you really can't efile prior year returns through any service - it's just not allowed by the IRS regardless of who prepares them. What I ended up doing was printing my completed TurboTax returns and sending them via USPS Priority Mail with tracking. It actually wasn't as slow as I expected - my returns were processed within about 6-8 weeks, which is pretty standard for paper filing. One tip that helped me: I called the IRS processing center for my area about 3 weeks after mailing to confirm they received my returns. You can find the right number on the IRS website based on where you're mailing your returns. It gave me peace of mind knowing they actually got them and were in the system. The certified mail route that Connor mentioned is also a good option if you want extra proof of delivery, though it does cost a bit more than regular Priority Mail.

Just to add something important here - there's a statute of limitations on amended tax returns. You can generally only go back 3 years from the original filing due date to file an amendment and claim a refund. So if you filed your 2022 taxes on April 15, 2023, you have until April 15, 2026, to file an amended return for 2022. For 2023 taxes, you'd have until April 15, 2027. Don't wait too long to address this or you could lose your chance to recover the overpaid taxes from earlier years!

Wow, reading through all these responses makes me realize I'm not alone in this! As someone who works in employee benefits administration, I can confirm that this domestic partner vs. spouse classification mix-up happens WAY more often than you'd think. A few additional tips based on what I've seen work: 1) When you approach HR, come prepared with documentation - marriage certificate, copies of your paystubs showing the imputed income, and ideally a calculation of how much this has cost you. Being organized makes them take it more seriously. 2) If your initial HR contact says "nothing can be done," ask to escalate to the benefits director or payroll manager. The front-line benefits person might not have authority or knowledge to make retroactive corrections. 3) Some companies have a formal "benefits error correction" process that allows for retroactive fixes. Ask specifically if this exists at your company. 4) Document everything in writing - send follow-up emails after verbal conversations summarizing what was discussed and agreed upon. The key thing to remember is that this IS fixable in most cases. Your employer has been incorrectly reporting your tax situation, and they generally want to correct legitimate errors like this to avoid potential issues with the IRS down the road. Don't give up if the first person you talk to says no!

Remember that if you're shutting down the business entirely, you'll need to file a final return. Make sure to check the box indicating it's a final return and include a statement explaining the closure. Don't forget to cancel any business licenses, permits, and close business accounts properly too. I learned the hard way that loose ends with a business closure can come back to haunt you years later!

One thing to consider that hasn't been mentioned yet - if you're selling the equipment to your brother (the former partner), this could actually be viewed more favorably by the IRS than selling to other family members. Since he was an original co-owner of the equipment through the partnership, there's already an established business relationship and legitimate reason for the transaction. Just make sure you have documentation from when he left the partnership showing how the assets were divided. If the partnership agreement or dissolution documents don't clearly address the equipment, you might want to create a written agreement now that references the original purchase and his departure from the business. Also, regarding the gain recognition - yes, you'll need to report it on Form 4797 as others mentioned, but the good news is that since this was Section 179 property, the recapture will be taxed as ordinary income (not capital gains), which actually keeps the reporting simpler even though the rate might be higher.