Wait seriously? I had no idea there was a difference between "Free Edition" and "Free File". Is the interface the same? Does it still have all the helpful guidance?

The interface is nearly identical. It has all the same guidance and error checking features as the paid versions. The main difference is they don't try to upsell you throughout the process. It does have some income limitations (you need to make under $73,000), but it handles much more complex situations than their "Free Edition" which constantly forces upgrades for basic things like student loan interest or unemployment income. Just make sure you access it through the IRS Free File page rather than TurboTax's main site.

I've used both. H&R Block's interface isn't quite as slick as TurboTax, but their prices are usually a bit lower. Their free version also covers more forms than TurboTax's free edition. Customer service was better in my experience - shorter wait times to chat with someone.

As I understand it, if the injunction is eventually overturned and the BOI requirements are upheld, FinCEN would likely establish new compliance deadlines rather than trying to enforce the original ones retroactively. It would be pretty unreasonable to penalize businesses for non-compliance during a period when a court order explicitly stated they didn't have to comply. The penalties are indeed significant - civil penalties of $500 per day for violations, plus potential criminal penalties including imprisonment for willful violations. But these would only apply to violations of whatever new deadlines might be established if the CTA is ultimately upheld.

That makes sense, thanks for the clarification! I was worried we might get caught in some kind of legal trap if we don't file now but then the requirements come back later. I'll just keep our information ready but hold off on filing until there's more clarity.

I think your accountant is being overly cautious. While FinCEN's system remains operational and you technically *can* still file, there's no legal requirement to do so while the injunction is in effect. There's no penalty for not filing right now. Unless you have some very specific business reason for wanting your beneficial ownership information on file with the government during this period of uncertainty, I'd recommend waiting to see how the legal situation resolves. Just keep your information organized so you're ready if/when the requirement comes back.

The 25% employer contribution is based on the gross W-2 wages, NOT reduced by the employee contribution amount. So in the original poster's case, it would be 25% of $13,500, regardless of how much they contributed as an employee. The employee contribution (traditional pre-tax) does reduce taxable income on their personal tax return, but doesn't affect the calculation for the employer contribution amount.

Thanks for explaining! That clears it up. I've been calculating it wrong all this time.

That's interesting - I hadn't considered that angle. But wouldn't I end up paying more in self-employment taxes as a Schedule C that would offset the higher retirement contribution benefits?

Yes, you'd pay more in self-employment taxes as a Schedule C, so it's definitely a trade-off. Every dollar of business profit would be subject to self-employment tax, whereas with an S-Corp, only your W-2 wages are subject to employment taxes. It really comes down to running the numbers both ways. If maximizing retirement contributions is your primary goal, Schedule C might work better despite higher SE taxes. But if overall tax minimization is the goal, S-Corp usually wins. Most people find the S-Corp advantage outweighs the slightly lower retirement contribution potential, but it depends on your specific situation and priorities.

That's super helpful, thanks! Is it difficult to set up the IRS online account? I've heard horror stories about identity verification issues.

The IRS account setup is hit or miss. Make sure you have your phone in hand (they text a verification code) and a credit card or loan account number for additional verification. Most people get through fine, but about 30% of users hit snags with identity verification. If online verification fails, you'll need to either schedule a video interview or visit a local IRS office in person. The video option is much faster - usually within a week versus potentially months for an in-person appointment.

I filed 3 years at once back in 2023 and didn't get audited. But I made sure everything was accurate and had documentation for all my deductions just in case. From what I understand, simply filing back taxes doesn't automatically trigger an audit - it's more about what's IN those returns (unusual deductions, major discrepancies, etc).

This is really helpful! We do track who's playing but never thought to separate member vs. guest gaming income. Do we need to track that separately on our books? And does it matter if the guests are paying the members who brought them, or paying directly?

Yes, you should definitely track member vs. non-member income separately in your books. This makes it much easier if you ever get audited, and helps with completing your 990 accurately. The IRS specifically looks at this breakdown for veterans' organizations. For your second question, it matters who's actually putting the money in. If the guests are paying directly for their own gaming activities, that's considered non-member income. If members are paying on behalf of their guests, that could be considered member income. The safest approach is to consider all guest payments as non-member income and track it that way. Better to be conservative with this.

Yes, we file 990-T for a portion of our gaming income. You can deduct directly connected expenses - so for pull tabs, that includes the cost of the pull tabs themselves, any specific equipment for them, allocated space costs for the area where they're sold, and the portion of that paid employee's time spent on pull tabs. Just make sure you have a reasonable allocation method that you apply consistently.

Thanks for explaining! That makes sense about the direct expenses. Do we need to keep separate physical inventories of the pull tabs as well or just track it in our accounting system?