I'm a bit confused by some of these responses. Does the time zone thing apply to all IRS deadlines or just the April filing deadline? What about estimated tax payments?

Don't panic! You're absolutely fine. The IRS operates on a "timely filed" principle based on your local time zone, not Eastern Time. Since you submitted at 11:23pm Pacific Time on April 15th, your return is considered filed on time according to IRS regulations. The April 16th date on your confirmation is likely just when the tax software's servers processed your return or when they transmitted it to the IRS - this can happen due to high traffic volumes on deadline day. What matters legally is when YOU hit submit in your time zone. You should receive an official IRS acceptance email within 24-48 hours that will show the correct filing date. Keep that email as your official record. I've seen this exact situation countless times and it's never been an issue. The IRS systems are designed to handle time zone differences properly. If you're still worried, you can always call the IRS to confirm (though expect long wait times), but based on your description, you're completely in the clear. No late penalties for you!

What if the boss hired your husband as a "consultant" for the transition to the new owners and paid him $30k for that? Might still be taxable but could potentially be at a better rate if he set up as an independent contractor? Just spitballing here...

I'd strongly recommend getting professional tax advice before proceeding with any of these strategies. While some of the suggestions here have merit, the IRS is very strict about distinguishing between compensation and gifts, especially when there's an employment relationship involved. The key factors the IRS will look at are: 1) the relationship between the parties, 2) the intent behind the payment, and 3) whether it's tied to services rendered. Since this is explicitly described as a reward for "loyalty over the years," it's likely going to be treated as taxable compensation regardless of timing or structuring. If the former boss really wants to help minimize the tax impact, the "gross up" approach mentioned earlier might be the most straightforward legal option. He could calculate the total amount needed to leave your husband with $30k after taxes and pay that larger amount, with the understanding that the extra covers the tax burden. Whatever you decide, make sure to document everything properly and consider consulting with a tax professional who can review your specific situation. With this much money involved, the cost of professional advice is probably worth the peace of mind.

For real tho, dont forget to look into sales tax issues too. Depends on your state, but most require you to collect sales tax on the stuff you make and sell. It's separate from income tax and can bite you if you ignore it.

Great question about the sales tax! It really depends on your state, but many states do tax construction/remodeling services differently than just selling products. In my state, if you're providing both materials AND labor (like a full kitchen remodel), you typically need to collect sales tax on the total project cost, not just the materials. However, some states only tax the materials portion, and others have exemptions for certain types of construction work. Since Jessica mentioned a $14,500 kitchen remodel, that's definitely substantial enough that she should check with her state's department of revenue about sales tax requirements. The tricky part is that once you start doing bigger projects like this, you're clearly operating as a business rather than just selling occasional hobby items. Most states have thresholds where you need to register for a sales tax permit once you hit certain revenue levels. Better to get ahead of it now before it becomes a bigger issue down the road!

Why when I log in to my where is my refund it says topic 151 but on my transcript it says code 766 ??

Tax Topic 151 can be confusing, but it generally means your refund is being held for review or offset. This could be due to several reasons: unpaid debts (student loans, child support, back taxes), identity verification issues, or the IRS needing additional documentation to verify your claims (like dependents or credits). Even if you don't think you owe anything, there might be old debts or issues from previous years. I'd recommend calling the IRS directly at 1-800-829-1040 to get specific details about your situation, or check your account transcript online which will show any holds or codes. The wait times can be long, but it's the best way to get clarity on why your refund is delayed.

I'm going through something very similar right now! My LLC converted to an S-Corp in August 2024, and my CPA also put January 1, 2024 as the effective date on Form 2553. I was initially confused like you, but after reading through these responses and doing some research, it seems like this is actually a legitimate strategy. What I learned is that the IRS has specific relief procedures (like Rev Proc 2013-30 that others mentioned) that allow for retroactive S elections under certain circumstances. The key is that you have to demonstrate you intended S-Corp treatment from the beginning and meet the filing deadlines. I ended up calling the IRS Business line to check on my election status, and the agent confirmed they received it and said it looked fine. She mentioned that even if they can't approve the January 1st date, they'll just adjust it to the actual formation date - no penalties or major issues. My advice would be to give it a few weeks to process, then call to check the status. If there are any problems, the IRS will send you a letter explaining what needs to be corrected. Don't panic - this seems to be a pretty routine situation that accountants deal with regularly!

I'm an enrolled agent and I see this confusion about Form 2553 effective dates all the time. Your accountant likely did this intentionally, and it's actually more common than you'd think. Here's what's happening: When you request a January 1st effective date for an entity formed later in the year, you're essentially asking the IRS to treat your corporation as an S-Corp for the entire tax year. This can be beneficial because: 1. You avoid filing a short-period C-Corp return for the pre-election period 2. You get S-Corp tax treatment (pass-through taxation) for the full year 3. It simplifies your tax compliance The IRS has specific procedures that allow this under certain circumstances. Revenue Procedure 2013-30 provides relief for late or retroactive S elections when you can show you intended S-Corp status from formation. However, you're right that the election can't technically be effective before the entity exists. What typically happens is: - If the IRS approves the January 1st date under the relief procedure, you get full-year S treatment - If they don't approve it, they'll automatically adjust it to your incorporation date (June 15, 2024) Either way, you won't face penalties as long as the form was filed within the 75-day window from incorporation. The IRS will send you a determination letter confirming the effective date they've approved. I'd recommend waiting 60-90 days from your filing date, then calling to check the status if you haven't received confirmation. Don't stress too much - this is a routine situation that gets resolved smoothly in most cases.