Don't forget that even though you had minimal activity, you still need to file Schedule K-1 for yourself as the sole shareholder. The $125 income (minus the $27 expense) will flow through to your personal return. Also check if your state requires a separate S-Corp filing - many do, even if you had minimal or no activity. Some states have minimum franchise taxes for S-Corps regardless of activity level, which can be a nasty surprise if you're not expecting it.

Great questions! I went through this exact same situation two years ago when I first elected S-Corp status for my single-member LLC. The minimal activity part is actually pretty common in the first year. A couple additional things to keep in mind beyond what others have mentioned: 1) Make sure you're comfortable with the ongoing compliance requirements. Even with minimal activity, you'll need to file Form 1120S every year by March 15th (with extensions available). There's also reasonable compensation requirements once you start having significant income. 2) For your $125 bank bonus, double-check if the bank issued you a 1099-MISC or 1099-INT. If they did, make sure the income amount on your return matches exactly what they reported to the IRS to avoid any automated matching notices. 3) Since you mentioned wanting to avoid giving out your SSN to clients - just remember that your S-Corp election doesn't change your LLC's legal structure. You're still an LLC for legal purposes, just taxed as an S-Corp. Some clients might still ask for your SSN if they're not familiar with this distinction. The learning curve is steep the first year, but it gets much easier once you understand the process. Good luck with your filing!

If you actually want to talk to the irs, use a calling service. I used claimyr.com and it was so much better than the literal days of my life I've wasted trying to reach them myself. It only took about 30 mins to get a person on the line who actually was helpful and told me exactly what the issue was with my return and how to fix it.

This verification of non-filing notice can definitely be confusing, especially when you know you filed! A few things to consider: 1. The timing suggests your return might still be in the processing queue when someone (likely a lender, school, or benefit agency) requested verification of your filing status. Since you filed in February and the verification was requested in early March, there could be a processing delay. 2. Check your IRS account online to see if your return shows up as "received" or if there are any processing holds (codes like 570 or 971). 3. Since you mentioned getting acceptance from TurboTax within 24 hours, that's a good sign - but acceptance just means it passed initial validation, not that it's fully processed. 4. The tracking ID format (starting with 10758) might indicate which type of entity requested the verification, but that's not something to worry about. My recommendation: Call the official IRS number (800-829-1040) to verify your return was received and ask about any processing delays. Don't use any numbers from the notice itself - always call the main IRS line. If you can't get through after several attempts, some people have had success with calling services that help navigate the phone system. This is likely just a timing issue rather than anything fraudulent, but it's worth confirming with the IRS directly.

This is such a timely post for me! I just had my first big casino win last month ($7,500 on a progressive slot) and was totally unprepared for the tax implications. The casino did withhold the 24% federal tax, but I had no idea that wasn't the end of it. What really caught me off guard was learning that ALL my gambling winnings for the year need to be reported, not just the ones where taxes were withheld. I had several smaller wins throughout the year that I completely forgot about until I started reading up on this stuff. Now I'm scrambling to piece together all my casino visits and trying to figure out what I actually won vs lost. The good news is that since my regular income is pretty modest, the additional gambling income won't push me into a higher bracket where I'd owe significantly more than what was already withheld. But lesson learned - next time I'm keeping much better records from day one!

Great breakdown from everyone here! As someone who learned this the hard way, I want to emphasize one crucial point that often gets overlooked: estimated quarterly payments. If your gambling winnings are substantial enough that the 24% withholding won't cover your total tax liability, you may need to make estimated tax payments to avoid underpayment penalties. This is especially important if gambling isn't your main source of income and you don't have other withholdings to cover the gap. The IRS expects you to pay taxes as you earn income throughout the year, not just when you file. So if you hit a big jackpot early in the year and know you'll owe more than what was withheld, consider making quarterly payments. The safe harbor rule is generally to pay 100% of last year's tax liability (or 110% if your prior year AGI was over $150k) to avoid penalties, but with gambling winnings throwing off your usual income, it's worth calculating what you actually owe. I learned this after winning big in February and then getting hit with underpayment penalties despite having taxes withheld at the casino. Now I always set aside extra money from any big wins to cover the additional tax liability and make quarterly payments if needed.

I'm in a very similar situation with back taxes from 2019-2021 totaling around $38k that got transferred to CBE Group. One thing that really helped me understand my options was getting a free consultation with a tax attorney through my local bar association's referral service. The attorney explained that while CBE can't directly garnish wages like the IRS can, they will likely try to get you to agree to a payment plan that might be more than you can actually afford. If you can't make those payments, they'll send it back to the IRS who then has all their collection powers available. Given that you've been unemployed for a year, you should definitely look into Currently Not Collectible status before you start working again. The IRS considers your current financial situation, not your future earning potential. If you qualify for CNC status while unemployed, it could buy you time to get back on your feet financially before having to deal with payments or garnishments. Also, don't let CBE pressure you into a payment plan immediately. You have rights and options - take time to understand them all before committing to anything.

I've been dealing with a similar situation with CBE Group for the past 8 months, so I wanted to share what I've learned. First, you're right to be concerned about wage garnishment, but the good news is that CBE cannot directly garnish your wages like the IRS can. They would need to return your case to the IRS first. One thing that really helped me was understanding the timeline. CBE typically works accounts for about 2 years before potentially returning them to the IRS. During that time, they can only offer payment plans - they can't approve offers in compromise, currently not collectible status, or other collection alternatives. Since you've been unemployed for almost a year, I'd strongly recommend applying for Currently Not Collectible status directly with the IRS before you start working. You'll need to complete Form 433-F and provide documentation of your financial hardship. The key is to get this status while your income is still low, because once you start earning again, it becomes much harder to qualify. Also, keep detailed records of all communications with CBE. They're required to follow specific procedures, and if they don't, you can file complaints. Don't let them pressure you into a payment plan you can't sustain - that just sets you up for failure and eventual return to IRS enforcement actions. The most important thing is to stay proactive. Ignoring the situation only makes it worse and limits your options down the road.

Don't forget about your state filings too! Depending on your state, you may need to file separate state tax returns for the S-Corp period as well. Some states automatically recognize the federal S-Corp election, while others require a separate state election.

Just went through this exact scenario last year! A few additional things to keep in mind that saved me from headaches: 1. **Estimated tax payments**: If you made estimated tax payments as an LLC during 2023, you'll need to figure out how to allocate those between your Schedule C and S-Corp portions. The IRS considers them made ratably throughout the year unless you can prove otherwise. 2. **Asset basis transfer**: When you elected S-Corp status, any business assets (equipment, inventory, etc.) transferred from the LLC to the S-Corp at their adjusted basis. Make sure you're tracking this correctly for depreciation purposes on both returns. 3. **Health insurance deduction**: If you were deducting health insurance premiums as self-employed health insurance on Schedule C, you can continue doing this on your personal return for the S-Corp period (since you'll be a >2% shareholder). But the mechanics change slightly. Definitely get that Form 7004 filed today if you haven't already! The automatic extension is your friend here and gives you time to sort through all these details properly.