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Just a warning - if they do reimburse you for a portion of your rent, make absolutely sure they set it up properly. My company tried to do this last year and messed it up. They gave me rent reimbursements but didnt document it as an accountable plan. At tax time, I found out they had added all those "reimbursements" to my W-2 as income! I ended up paying taxes on money that was supposed to just be covering my expenses. Double check how it shows up on your paystubs!
This is such great advice from everyone! As someone who went through this exact transition last year when our office closed, I can confirm that getting the accountable plan set up correctly is crucial. One thing to add - since you mentioned you're at a tiny company with just 5 total people, your bosses might actually appreciate you bringing this up. Small business owners often aren't familiar with accountable plan rules, and setting this up properly can save them money too (no employment taxes on the reimbursements vs. having to pay FICA on stipends). For your specific situation with the desk in your living room corner, I'd suggest being conservative with the percentage calculations. The IRS looks for "regular and exclusive use" for business, so focus on documenting things like your internet usage during work hours, any office supplies you buy, maybe a portion of utilities if you're running equipment all day. Keep it reasonable and well-documented. Also, since you swap custody years with your ex, just make sure any home office stuff doesn't accidentally complicate that arrangement if you end up needing to track square footage or anything like that. But honestly, with proper accountable plan reimbursements, it shouldn't affect your personal tax return at all.
Has anyone had success getting this resolved online? I hate making phone calls š
Ugh, that's what I was afraid of. Guess I'll have to bite the bullet. Thanks!
I went through this exact same thing about 6 months ago! Don't stress too much - it's actually pretty straightforward once you get through to someone. Just make sure you call from the phone number that's on file with the IRS, and have your Social Security card handy too. They might ask for details about previous addresses or family members. The wait times can be brutal though, so definitely try calling first thing in the morning around 7 AM when they open - that's when I had the most luck getting through quickly.
lol welcome to the club fam 𤔠ive been trying to sort out my taxes for months now. its like playing whack-a-mole with these people i swear
I just went through this exact same process a few months ago! The 4883C letter can be stressful, but it's actually pretty straightforward once you get through to someone. Here's what worked for me: - Call first thing in the morning (8am sharp) - way better chance of getting through - Have your Social Security card, driver's license, and last year's tax return ready - They'll ask you verification questions like previous addresses, employers, etc. - The whole call took about 20 minutes once I got connected For the refund status, definitely use the "Where's My Refund?" tool, but don't panic if it doesn't update right away after verification. Mine took about 2 weeks to show movement, then got my refund about 3 weeks after that. Good luck! You got this! šŖ
Thanks for all the helpful advice everyone! @Royal_GM_Mark I think @Logan Greenburg hit the nail on the head - your timing issue is likely the main culprit here. Since you started your business in October but didn't file the 2553 until February, you definitely need to include that reasonable cause statement when you resubmit. I'd also recommend combining a few of the strategies mentioned here: 1) Include the detailed reasonable cause statement explaining the late filing, 2) Use the correct state-specific fax number from the current form instructions, and 3) Follow up with a call using one of those callback services to confirm receipt and get a timeline. The good news is that the IRS is generally pretty forgiving with late S-corp elections when you provide a reasonable explanation. Just be honest about not understanding the deadline requirements initially. Most small business owners don't realize how tight that 2 month 15 day window is!
This is really helpful advice! I'm new to all this business tax stuff and had no idea about the timing requirements for S-corp elections. @Royal_GM_Mark your situation sounds exactly like what happened to my brother last year - he also started his business in the fall but didn't file the 2553 until the following spring when his accountant mentioned it. The reasonable cause statement really does work though! My brother's was accepted after he explained he wasn't aware of the deadline. Just make sure to be specific about when you started the business versus when you filed - the IRS wants to see you understand what went wrong. Good luck with the resubmission!
I've been through this exact scenario with multiple clients as a tax preparer. The key thing to understand is that Form 2553 rejections are often administrative rather than substantive issues. Based on your timeline (business started October 2023, 2553 filed February 2024), you definitely need to include a reasonable cause statement for the late filing. The IRS is actually quite reasonable about accepting these when you provide a clear explanation. Here's what I recommend for your resubmission: 1) Attach a separate page titled "Reasonable Cause Statement" explaining you weren't aware of the 2 month 15 day deadline and filed immediately upon learning about it from your accountant, 2) Double-check you're using the correct fax number for your state from the current form instructions, 3) Keep detailed records of when you fax it (date, time, confirmation page). Most importantly, don't panic about your business return. The IRS rarely reverses an accepted business return in these situations. Your personal return will just need to be resubmitted once the 2553 is processed, which typically takes 4-6 weeks after they receive it.
Liam McGuire
My mailman been playing games wit my check I just know it š¤”
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Amara Eze
ā¢LMAOOO bet he already spent it š¤£
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Declan Ramirez
I'm in the same situation - 2/7 mail date and still nothing here in Texas. Called my state tax office yesterday and they confirmed it was mailed on schedule, so it should arrive within the next few days. The rep mentioned that mail delivery has been slower than usual this month due to weather delays in some regions. Hang in there!
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Grant Vikers
ā¢Thanks for calling and checking! That's reassuring to hear they confirmed it was mailed. Weather delays make total sense - we've had some crazy storms lately. Definitely helps ease my anxiety knowing others are in the same boat š
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