Missed tax filings happen! I screwed this up when starting my S Corp too. Be sure to file that zero return ASAP. Quick tip - get a tax calendar app or set quarterly reminders so this doesn't happen again. The IRS has very specific due dates for S Corps that are easy to miss.

Don't panic - this is actually a pretty common mistake for new S Corp owners! Here's what you need to do: 1. **File the missing Q1 Form 941 immediately** - Yes, you needed to file even with zero wages. File it as a "zero return" showing no wages, no taxes withheld, etc. There may be a small penalty, but it's usually minimal for first-time filers. 2. **For your current quarter** - Since you haven't paid yourself yet, you technically don't have payroll to report. But here's the important part: as an S Corp owner providing services, you need to start taking a reasonable salary soon. The IRS doesn't like when S Corp owners avoid payroll taxes by only taking distributions. 3. **Going forward** - Set up quarterly reminders for Form 941 filings (due dates are April 30, July 31, October 31, and January 31). Even if you have zero payroll activity, you still need to file. The good news is that since this is your first offense and the amounts are relatively small, penalties should be manageable. Focus on getting compliant now rather than worrying about what's already happened. You've got this!

Could also be worth asking if she's part of a larger firm with specific policies or if she's independent. Different firms have different document retention policies. I've worked with H&R Block before and they never asked for copies of my SSN card, just needed to see it once to verify.

I'm a CPA and I can confirm that requesting copies of SSN cards is NOT standard practice in our industry. We need your SSN to prepare your return, but we don't need physical copies of the cards themselves. The IRS Due Diligence requirements for tax preparers focus on verifying identity through government-issued photo ID (like driver's license) and ensuring the SSN matches the taxpayer, but keeping copies of SSN cards isn't part of these requirements. Her explanation about "security issues" doesn't make sense from a professional standpoint. If someone tries to fraudulently use your SSN, having a copy of your card won't help prevent or resolve that situation. What WOULD help is proper data security practices on her end - encrypted storage, secure client portals, and following IRS Publication 4557 guidelines for data protection. I'd recommend asking her to provide written documentation of her firm's document retention policy and why specifically she needs copies rather than just verification. A legitimate tax professional should be able to explain their practices clearly and provide documentation of their security protocols.

For anyone curious about the whole process, I just wanted to share that Michigan's energy draft system has been around for years and it's actually pretty reliable once you understand how it works. The reason they use these special drafts instead of regular checks or direct deposit is because it ensures the funds go specifically toward heating costs, which is the whole point of the Home Heating Credit program. One thing I learned from talking to my utility company rep is that they actually prefer these energy drafts over regular payments because they process them differently in their system - it shows up as a state assistance credit rather than a regular payment, which can be helpful for your account history if you ever need to reference it later. The 7-day window they give you is pretty accurate too - in my experience over the past few years, I've received mine anywhere from day 5 to day 7, never longer. If you're past day 10 and still haven't received anything, that's when I'd recommend calling the Michigan Treasury customer service line to check on it. Also worth noting that if you move before using your energy draft, you'll need to contact Michigan Treasury to get it reissued to your new address - they won't forward it through regular mail forwarding services since it's considered a financial instrument.

As a newcomer to this whole process, I just want to say how helpful this thread has been! I'm in a similar situation - my Home Heating Credit claim just switched to "completed" status yesterday (Feb 9th) with the same "energy draft issued" message. Reading through everyone's experiences has really put my mind at ease about what to expect. The timeline breakdown and practical tips like taking a photo of the draft before submitting it are exactly what I needed to know. It's also reassuring to hear that the portal not showing the dollar amount is totally normal - I was starting to worry there was some kind of error with my application. Thanks to everyone who shared their real-world experiences with this process. It's so much better than trying to decode the official government explanations! Now I know to watch for that plain white Treasury envelope in the next few days and have a good understanding of how to handle it when it arrives. This community is awesome for helping newcomers navigate these confusing systems! 🙌

This is such a common misconception that trips up so many people! The key thing to understand is that when you sell ANY portion of an investment, you're not withdrawing your "original money" - you're selling a percentage of your total holdings. Think of it this way: if you buy 100 shares of a stock for $25 each ($2500 total) and they double to $50 each, you now have $5000 worth of stock. If you sell 50 shares at $50 each (getting $2500), you're not getting your "original investment" back - you're selling half your position, which has a cost basis of $1250 (50 shares × $25 original cost) and realizing $1250 in taxable gains. This applies regardless of whether it's stocks, crypto, or other investments. The IRS doesn't care that the dollar amount you're withdrawing equals your original investment - they care about the cost basis of what you're actually selling. For your tax planning purposes, if you sell $2500 worth in 2025, you'll owe taxes on the gains portion in that tax year. The exact amount depends on your cost basis calculation method (FIFO, LIFO, or specific identification if you have proper documentation).

Great question! There are definitely several legitimate strategies to minimize tax impact when accessing investment gains: **Timing strategies:** - If you're close to the one-year mark, waiting for long-term capital gains rates (typically 0%, 15%, or 20% vs ordinary income rates for short-term) - Spreading sales across multiple tax years to stay in lower tax brackets - Timing sales in years when your overall income is lower **Tax-loss harvesting:** - Selling losing positions to offset gains from your profitable sales - Be careful of the wash sale rule (can't buy back the same security within 30 days) - This can be especially effective if you have a diversified portfolio with some winners and losers **Other considerations:** - If you have both taxable and tax-advantaged accounts, consider which account to draw from first - For crypto specifically, some people use the specific identification method to sell their highest-cost-basis coins first (though you need excellent records) - Consider charitable giving of appreciated assets if you're philanthropically inclined The key is planning ahead rather than making reactive decisions. A tax professional can help model different scenarios based on your specific situation, especially if you have significant gains involved.

You're absolutely right that S-corp shareholders can make additional capital contributions without receiving new shares! This is actually one of the more flexible aspects of S-corp taxation that many people don't realize exists. Your brother's concern about proportional distributions is understandable but misplaced - that rule applies to how profits are distributed OUT of the corporation, not how capital is contributed INTO it. Think of it this way: the S-corp requires equal treatment when money flows from the business to shareholders, but there's no such restriction on money flowing from shareholders to the business. The practical benefit is exactly what you're looking for - you can inject additional capital to help the business while preserving your original ownership agreement. Your increased basis will give you some tax advantages (like being able to receive more tax-free distributions later), but you'll still receive the same percentage of ongoing profits as before. Just make sure to document this properly with corporate resolutions and have your accountant track the basis adjustment. Many family businesses use this approach when one member has more available capital but everyone wants to maintain the original ownership structure they agreed on. It's a great solution for exactly the situation you're describing!

This is a really common misconception in family S-corps! Your brother is actually incorrect about this restriction. S-corporation shareholders can absolutely make additional capital contributions without receiving new shares - it's completely legitimate and happens frequently. The key thing to understand is that S-corp proportional distribution rules only apply to money flowing OUT of the corporation to shareholders, not money flowing IN from shareholders to the corporation. You can contribute additional capital while keeping your existing ownership structure intact. When you make this contribution, it will increase your stock basis, which actually gives you some tax advantages. Higher basis means you can potentially receive more tax-free distributions in the future and deduct more S-corp losses on your personal return if any pass through. The most important thing is proper documentation. Make sure to: - Create a board resolution formally accepting your capital contribution - Clearly state that no new shares are being issued - Record it as additional paid-in capital in your corporate books - Have your accountant track the basis increase for tax purposes This is actually a standard solution for exactly your situation - when family members want to provide different levels of capital investment while maintaining their original ownership agreement. Your instinct that there "must be a way" is spot on!