The Michigan Treasury is so behind rn its not even funny. Their still processing stuff from January smh

I feel your pain! Filed mine paper on Feb 5th and still waiting too. Called the Michigan Treasury helpline yesterday and they said they're running about 8-10 weeks behind on paper returns due to staffing issues. The automated system won't even show your return until they physically scan it into their system, which could be weeks from when they receive it. Hang in there - at least we'll get our refunds eventually!

One thing nobody's mentioned yet - if you're paying a large amount, check your credit card limits before trying to use Pay1040! I tried to pay my $14,000 tax bill with my credit card (wanted those sweet travel points) but got declined because it exceeded my single transaction limit, even though my overall credit limit was higher. Had to call my credit card company to get temporary approval for the large transaction. Also, calculate the processing fee before deciding - on larger amounts, the 1.87% can add up quickly.

For what it's worth, I've used both EFTPS and Pay1040 multiple times. EFTPS is better for planned payments (like quarterly estimated taxes) since you can schedule them in advance. Pay1040 is better for last-minute payments when you need it to process immediately. If you plan to make any future tax payments (like if you're self-employed), it's worth registering for EFTPS now anyway, even if you use Pay1040 for your current payment. That way you'll be all set up for next time without the waiting period.

This is slightly off-topic, but has anyone been audited for ERTC claims? My S-Corp got the refund for 2020-2021 (about $62k), and I'm working on the amendments now, but I'm hearing horror stories about aggressive audits specifically targeting ERTC. I'm reducing the wage expense by the full amount as others have said, but I'm worried about whether our original claim will be scrutinized. We had a 37% revenue drop in the qualifying quarters, so I think we're solid, but these rumors about audits have me nervous.

I went through this exact same situation with my S-Corp last year! The key thing to remember is that you reduce wage expenses by the FULL ERTC amount you received (minus any interest). This includes both the refundable and nonrefundable portions. When I was doing my amendments, I made the mistake initially of only reducing by the refundable portion, but my CPA caught it and explained that the IRS considers the entire credit as essentially reimbursing wages you already deducted. You can't get a tax benefit twice for the same expense. Make sure you're amending the correct tax years - so if you got credits for 2020 Q2-Q4 and 2021 Q1-Q3, you'll need separate amended 1120S forms for each year. Also, don't forget that these wage expense reductions will flow through to your K-1 and affect your personal return too. Good luck with getting everything sorted before your accountant gets back! Having all your documentation organized will definitely make that meeting go much smoother.

Think of the 'still processing' message like a waiting room at a doctor's office. You're in the building, but not yet with the doctor. Your return is like a patient in that waiting room - it's in the IRS system, but not actively being reviewed by an agent yet. Have you tried checking your tax transcript instead? Sometimes it shows more detailed status information than the WMR tool, similar to how a nurse might check your vitals before the doctor sees you.

I've been dealing with this same situation for about 12 weeks now. Filed my amended return in December to claim some missed deductions, and it's been stuck on "still processing" ever since. What I've learned from calling the IRS (after multiple 3+ hour wait times) is that the message really is just a generic placeholder. The agent told me my return is actually in their "Error Resolution System" which handles all amended returns, and they work through them in the order received. She couldn't give me a specific timeline but confirmed it was moving through their system normally. The frustrating part is that unlike regular returns where you get status updates, amended returns basically stay silent until they're done. I've started checking my transcript weekly instead of the "Where's My Amended Return" tool since it sometimes shows processing codes before the online status changes.

Another option you could consider is forming an S-Corp instead of a partnership. That would allow you to be both an owner AND an employee. You could take a reasonable W-2 salary (saving on SE tax for amounts above that salary) and then take distributions for the rest of your share. Obviously there are other factors to consider with entity selection, but I switched from a partnership to an S-Corp specifically because of this salary issue and it's saved me thousands in self-employment taxes.

I went through this exact situation when I started my consulting partnership. The guaranteed payment route that Keisha mentioned is definitely the right approach - it's specifically designed for situations like yours where one partner is doing the operational work. One thing I'd add is to make sure your partnership agreement specifies that these guaranteed payments are made regardless of partnership profitability. This protects your monthly income even if the business has a slow period. We learned this the hard way when our first quarter was rough and my partner questioned whether I should still get paid. Also, consider setting up a separate business checking account just for your guaranteed payments. It makes the bookkeeping much cleaner and helps with quarterly tax planning. I transfer 35% of each payment to a tax savings account immediately - better to overestimate than get hit with penalties. The IRS has some good examples in Publication 541 that show exactly how guaranteed payments work in different scenarios. Worth reading before you finalize your partnership agreement!