Has anyone dealt with Schedule M reporting when there are transactions between the two foreign corps but no direct transactions with US entities? In a structure similar to what OP described, our Foreign Corp B does business with Foreign Corp A, but neither directly does business with the US owners.

This is a really complex situation that highlights why international tax compliance can be so challenging! Based on the ownership structure you've described, I think you're dealing with multiple overlapping filing requirements that need careful attention. One thing I haven't seen mentioned yet is the potential impact of the timing of these filings. Form 5471 is due with your tax return (including extensions), but if you're dealing with multiple entities and multiple filing requirements, you'll want to make sure all the information is consistent across the different forms. Also, don't forget about the potential penalties for late or incorrect filing - they can be substantial for Form 5471 (up to $60,000 per form in some cases). Given the complexity of your structure with the constructive ownership issues, it might be worth having a tax professional review everything before filing, even if you use some of the tools others have mentioned to help with the initial analysis. The Schedule M reporting requirements are particularly tricky because related party transactions can include services, loans, guarantees, and other arrangements that aren't always obvious. Make sure you're capturing all types of transactions, not just sales of goods or services.

Just wondering if anyone has experience with this - can these mystery "correspondence" letters later lead to an audit or is it usually just administrative stuff? I got similar letters and I'm nervous it's the start of something bigger.

I went through something very similar about 8 months ago - got two IRS letters within a week saying they'd received "correspondence" from me that I definitely never sent. I was completely panicked thinking it was identity theft or fraud. After finally getting through to the IRS (took multiple attempts), it turned out that my previous year's tax preparer had submitted some kind of amended information electronically without telling me. The IRS agent explained that their system sometimes generates these generic "we received correspondence" letters for various types of electronic submissions, even when it's not technically correspondence from the taxpayer. The key thing is to not ignore them completely, but also don't panic. If there were actual issues with your taxes or fraudulent activity, the IRS would be much more specific about what they need from you. These vague acknowledgment letters are usually just their system being confusing about routine processing. That said, definitely try to get clarification for your own peace of mind. The suggestions others have made about calling early in the morning or using services to help get through are solid advice. In my case, once I spoke with someone, they were able to tell me exactly what had triggered the letters and confirmed I didn't need to take any action.

Don't forget to look into your state's requirements too! Depending on your state, there might be separate penalties for state payroll tax deposit shortages. Some states automatically mirror federal penalties while others have their own structures. Make sure you're addressing both sides of this issue.

This is a really stressful situation, but you're handling it the right way by being proactive about the makeup deposit. I went through something similar about 18 months ago when I miscalculated a 941 deposit due to a software glitch. One thing that really helped me was keeping detailed records of all communications and actions taken. Beyond what others have mentioned, I'd suggest also documenting the exact time you discovered the error and when you scheduled the corrective deposit. This timeline can be valuable if you need to demonstrate that you acted quickly once you became aware of the issue. Also, when you do get the penalty notice, don't panic if the amount seems higher than expected initially. Sometimes the IRS system generates automated penalties that don't account for partial payments or other factors, and these can often be corrected through a simple phone call. Your clean compliance history really is your best asset here - the IRS tends to work with businesses that have demonstrated good faith efforts to comply. Keep us posted on how it works out! This community has been really helpful for navigating these kinds of situations.

Don't forget that if you're filing with Form 8919, you still need to report your income somewhere. Generally, you'll report it on line 1 of your 1040 (wages) rather than on Schedule C (self-employment). Make sure you check the right code on Form 8919 too - probably Code G if you're filing an SS-8 at the same time.

Hey Mateo, I totally understand your stress about this situation - it's really frustrating when employers try to shift their tax burden onto employees. Based on what you've described (set schedules, uniforms, supervision, using their equipment), you were definitely misclassified as a contractor. Here's my advice: Don't wait for them to send you documents that may never come. Start documenting everything you can remember or find - any pay stubs, bank deposits, text messages about work schedules, photos of you in their uniform, anything that shows you were treated as an employee. You should absolutely file Form SS-8 to get an official determination, but don't let that delay your tax filing. Go ahead and file Form 8919 with your return using your best estimate of your total earnings from bank records. This way you'll only pay the employee portion of FICA taxes instead of the full self-employment tax. The key is to file on time even without their cooperation. The IRS understands these situations happen and has procedures in place to help workers like you. Document what you can, file the appropriate forms, and let the IRS sort out the employer's non-compliance. You're protecting yourself by following the proper procedures, even if it creates problems for the bakery - that's their responsibility for misclassifying you in the first place.

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

I had a similar issue last year with my dependents not being recognized properly. The key is to check your Account Transcript on the IRS website - it will show exactly what information they have on file for your dependents versus what you submitted. In my case, one of my kids' SSN had a transposed digit from when I originally filed. I had to file Form 1040X (Amended Return) with the correct information and it took about 12-16 weeks to get the additional refund processed. Make sure to include copies of Social Security cards and birth certificates as supporting documentation. The good news is that once they process the correction, you'll get the full amount you're owed plus any interest!