Let me add a wrinkle most people don't know - if you distributed any business assets to yourself during the dissolution (like computers, furniture, etc.), that needs to be reported as a liquidating distribution on your final 1120-S. The corporation is treated as having sold these assets to you at fair market value. I completely messed this up when closing my S-corp and ended up having to amend returns. Cost me an extra $400 in accounting fees!

I went through this exact same situation with my S-corp dissolution last year and want to emphasize something that might save you some headaches - make sure you also cancel your EIN with the IRS after everything is filed and processed. Even after filing all the final returns (1120-S, Form 966, etc.) and getting state dissolution completed, I kept getting IRS notices asking about missing tax returns for subsequent years because the EIN was still active in their system. You have to specifically write to the IRS requesting EIN cancellation and include copies of your dissolution documents. Also, if you had any business bank accounts, credit cards, or merchant services tied to your EIN, close those ASAP. Some banks will report 1099s to closed business EINs which can trigger more IRS correspondence down the road. The penalty situation sucks, but as others mentioned, first-time penalty abatement is usually granted if you've been compliant in the past. Get everything filed immediately to stop the bleeding, then deal with penalty relief afterward.

Just wondering - have you looked into equity compensation restructuring? If a portion of that $1.1M is from stock options, RSUs or other equity comp, there are timing strategies that can make a huge difference. I saved nearly 6 figures last year by working with my employer to adjust my vesting schedule and exercise timing.

Given your income level, I'd strongly recommend looking into conservation easements if you own any land or are considering real estate investments. These can provide substantial tax deductions - sometimes 4-5x your investment - while preserving land for conservation purposes. Also, consider a defined benefit pension plan if you have any self-employment income or consulting work on the side. These allow much higher contributions than traditional 401ks - potentially $200k+ annually depending on your age and income. One strategy that's often overlooked is bunching deductions into alternate years. Since you're likely itemizing anyway, consider prepaying property taxes, state taxes (up to the SALT cap), and charitable donations in alternating years to maximize the benefit. Finally, if you're married, look into spousal IRA contributions and income-splitting strategies through family partnerships for any investment income. The key at your level is having multiple strategies working together rather than relying on any single approach.

Has anyone tried bunching charitable deductions? With the higher standard deduction ($29,200 for married filing jointly in 2024), we've started doing this where we donate 2-3 years worth of charitable contributions in a single year so we can itemize that year, then take the standard deduction in the off years. We're also looking into donor-advised funds where you can get the tax deduction immediately but distribute the actual charitable gifts over time. Anyone have experience with these strategies?

One strategy you might be overlooking is a backdoor Roth IRA conversion. Since your MAGI is over $146K and you can't deduct traditional IRA contributions, you could still contribute $7,000 to a non-deductible traditional IRA, then immediately convert it to a Roth IRA. This won't reduce your current tax liability, but it's tax-free growth for retirement. Also, since you mentioned having kids, make sure you're getting the full Child Tax Credit ($2,000 per child under 17). The credit phases out at higher incomes but doesn't start until $400K for married filing jointly. Another option: If your employer offers a cafeteria plan or flexible spending account beyond just healthcare, you might be able to redirect some compensation to pre-tax benefits like commuter benefits, life insurance premiums, or dependent care assistance. Finally, consider timing any major purchases or medical expenses. If you're close to the 7.5% AGI threshold for medical deductions, you might bunch medical expenses into one year to exceed the threshold.

Does anyone know how this gift reporting works with crypto? My dad wants to transfer some Bitcoin to me instead of traditional currency (he's in Singapore). Would that still count as a foreign gift that needs to be reported on Form 3520 if it's over $100,000?

This is such a helpful thread! I'm in a similar situation as a green card holder expecting to receive money from my parents overseas. One thing I want to add that hasn't been mentioned yet is the importance of keeping detailed records of the gift. Even though you won't owe taxes on the gift itself, the IRS may ask for documentation if they have questions later. I recommend getting a signed letter from your father stating that the money is a gift with no expectation of repayment, along with bank transfer records showing the source of funds. Also, be aware that large international wire transfers (typically over $10,000) are automatically reported to FinCEN by banks, so the government will already have a record of the transfer. Having your own documentation helps prove it was a legitimate family gift rather than unreported income. One last tip - if you're planning to use the gift money for a major purchase like a house, your mortgage lender will likely ask for a gift letter and proof of the funds' origin anyway, so having this documentation prepared in advance will save you headaches later!

I appreciate everyone's input here, especially the tax attorney's clarification. As someone who was also confused by all the news coverage, I think the key point is that the IRS is a massive operational machine that continues running regardless of leadership changes. The comparison to past government shutdowns is really helpful - even during those, essential tax functions continued. And the constitutional point about Congress being the only body that can change tax rates is crucial to understand. For anyone still worried, I'd echo the advice to use official IRS resources or speak directly with an IRS representative rather than relying on news speculation. The media tends to sensationalize administrative changes, but your tax obligations remain exactly the same as they were before any restructuring began. Bottom line: pay your taxes as normal, don't claim exempt unless you actually qualify, and remember that failing to pay will only create bigger problems for you personally regardless of what's happening at the agency level.

This is exactly the kind of practical advice we need right now! I've been following this thread since the beginning and was initially pretty worried about the whole situation. Like many others here, I was getting caught up in all the news coverage and starting to panic about whether I should change my tax strategy. What really helped me was seeing the progression of comments from people who were skeptical but then actually took steps to get verified information - whether through the AI tax tools, speaking directly with IRS representatives, or getting clarification from the tax attorney. It's a good reminder that when we're uncertain about something this important, the best approach is to seek out authoritative sources rather than just worrying. The constitutional point about Congress being the only body that can change tax law was particularly eye-opening. I honestly didn't know that before reading this discussion. It makes the whole situation much less scary when you understand that administrative restructuring literally cannot change what you owe in taxes. Thanks to everyone who shared their experiences and expertise. This thread turned what felt like a confusing crisis into a much clearer understanding of how our tax system actually works.