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3 weeks is still pretty normal for mail delivery + initial processing. I wouldn't worry about USPS losing it yet. The IRS actually has a pretty good track record with receiving mailed returns. If you're really concerned, you could call the IRS practitioner priority line to confirm they received it, but honestly I'd wait another week or two before stressing about it being lost.
Anyone know if TurboTax can handle amending a return that was already filed through them? Or do I need to go to a tax professional if I'm in this situation?
TurboTax definitely can handle amended returns, even ones you already filed through them. In fact, it's usually easier because they already have all your original return info in the system. Just log back into your account, look for the option to "Amend a return" and follow the prompts. It'll pull in all your existing info and then guide you through adding the business income. You'll need to pay again for the amendment though, and there may be an additional fee for the business/self-employment forms.
I went through this exact same situation last year! The IND-452 rejection code is definitely because you're trying to file a second return for the same tax year. What worked for me was filing an amended return (Form 1040-X) that combined everything - my W-2 income plus my side business income on Schedule C. One thing I learned the hard way is to wait until your original return is fully processed before filing the amendment. I tried to rush it and had to resubmit because the IRS system couldn't find my original return yet. Also, if your side business income pushes you into owing more taxes, pay it ASAP to avoid interest charges piling up from the original due date. The whole process was way less scary than I thought it would be - TurboTax walked me through the amendment step by step and even caught some business deductions I had missed. Just remember that next year you'll want to file everything together from the start to avoid this headache!
Don't forget about qualified business income deduction (Section 199A)! As a construction company owner you might qualify for up to 20% deduction of your business income. That alone could save you $200k on taxes. But there are income limitations and it gets complicated depending on if you're considered a "specified service business" or not.
Construction usually isn't considered a specified service business for 199A though, right? That's more for doctors, lawyers, consultants etc. So the limitations shouldn't apply unless income is super high?
Wow, congratulations on hitting $1M in profit! That's incredible growth for a construction business. I can totally understand feeling overwhelmed by the tax implications though. A few quick thoughts to add to the great advice already given: 1. **Equipment purchases** - Since you're in construction, definitely look into buying equipment before year-end. Things like trucks, excavators, tools, etc. can often be fully deducted in the year of purchase. 2. **Business structure** - The S-corp suggestion is solid. With your income level, the self-employment tax savings alone could be huge. You'd essentially be saving 15.3% on a large portion of your income. 3. **Retirement contributions** - Max out whatever retirement accounts you can. With $1M profit, you could potentially contribute $61K+ to a SEP-IRA or Solo 401(k), which directly reduces your taxable income. 4. **Professional help** - At this income level, investing in a good CPA who specializes in construction businesses is worth every penny. They'll know industry-specific deductions and can help with proper tax planning for next year too. The key is acting quickly since we're getting close to year-end. Don't let analysis paralysis cost you - even basic moves like maxing retirement contributions and strategic equipment purchases can save you tens of thousands.
One thing I've learned after getting several IRS letters over the years - ALWAYS respond by the deadline even if it's just to say you're working on it or need more time! That's been my #1 rule and it's kept me from having small issues turn into bigger ones.
Now that you've mentioned it's a CP75 notice, I can definitely understand why your tax preparer wasn't overly concerned - these are routine audits for the Earned Income Tax Credit that happen quite frequently. The IRS randomly selects returns that claimed EITC for verification, and it's not necessarily because they think you did anything wrong. However, I do think your tax preparer should be more proactive in helping you respond properly. For a CP75, you'll typically need to provide documentation like birth certificates for any children you claimed, school records showing where your kids lived during the tax year, medical records, and proof of your income. The specific requirements should be listed in the letter. Since you used a professional tax service, they should have copies of all the documents you provided when filing and should be able to help you gather what's needed for your response. I'd recommend scheduling a proper meeting with them rather than just texting - this type of notice requires a documented response, and they should be walking you through exactly what needs to be submitted. Don't stress too much about it, but definitely don't ignore it either. Most people who respond properly to CP75 notices with the right documentation get through the process without any issues.
Reina Salazar
Another option is to speak with your state's Department of Labor. In many states, repeatedly failing to properly withhold required taxes can actually be considered a wage violation. I had a similar issue and filing a complaint with the DOL lit a fire under my employer's feet! Just make sure you have documentation showing you've made multiple attempts to get them to correct the issue. Most states have online complaint forms that are pretty straightforward.
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Saanvi Krishnaswami
ā¢Wouldn't this potentially damage your relationship with your employer though? I'm worried about retaliation if I file a formal complaint.
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Reina Salazar
ā¢That's a valid concern. While retaliation for filing a wage complaint is technically illegal, that doesn't mean it won't impact your workplace relationships. I'd suggest trying all the direct approaches first - the formal letter with tax code references that others mentioned, escalating to higher management, etc. The DOL complaint should be more of a last resort if nothing else works and you're really concerned about the tax implications. Sometimes just mentioning that you're considering this option can motivate employers to take the issue more seriously.
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Demi Lagos
Just curious - what states are involved here? Some states have reciprocity agreements that might make this less of an issue, while others are super aggressive about taxing remote workers. I had a nightmare situation with NY and CT taxes a couple years ago.
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Philip Cowan
ā¢I'm living in Virginia but my company is based in Maryland. From what I understand, they don't have reciprocity, which is why I'm especially concerned. My company seems to think that since their office is in MD, they can just withhold MD taxes despite me never setting foot in their office. It's so frustrating!
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