Thanks for mentioning this! I didn't even think about that. I'll have to look at the paperwork I got and see if anything was withheld. Would I get all of that back if I file?

Yes, if your income is below the filing threshold and you had federal income tax withheld (box 2 on your W-2), you would get that money back when you file. However, I need to correct myself about Social Security and Medicare taxes (boxes 4 and 6) - those generally aren't refundable even if you're below the filing threshold. The employer is required to withhold those regardless of how much you make. So you won't get those specific taxes back, but any federal income tax would be refunded.

I made like $200 from DoorDash last year and didn't file anything. Should I be worried?

How do you check if you're withholding the right amount? I always get really small refunds too and I'm never sure if that's good or bad.

The IRS has a tax withholding estimator on their website that's actually pretty accurate. You input your income, filing status, and other tax situations, and it tells you if you're on track. You can adjust your W-4 anytime with your employer if you want a bigger refund (more withholding) or more money in each paycheck (less withholding). Small refunds are technically better financially because you've had access to more of your money throughout the year instead of waiting for a refund. But some people prefer larger refunds as a form of forced savings.

It really depends entirely on how much was withheld from each paycheck though. You probably just had more withheld throughout the year.

True, withholding makes all the difference. My job tends to withhold a bit more than necessary. I also contribute to a traditional 401k which lowers my taxable income pretty significantly, forgot to mention that. That probably explains the difference between our refund amounts. Might be worth checking if you have any retirement contributions or other pre-tax deductions that could have been missed.

Did they ever come to your house or anything? That's what I'm worried about. Also did it affect your credit score?

They never came to my house - that's pretty rare unless you're being investigated for tax fraud involving large amounts of money or criminal activity. The IRS generally handles everything through mail notices and phone calls before taking more serious collection actions. It absolutely destroyed my credit score for years. The tax liens showed up on my credit report and dropped my score by over 100 points. This affected my ability to get apartments, car loans, and credit cards. Even after I paid everything off, the damage lingered for a while. The credit reporting rules have changed somewhat since then, but tax problems can still indirectly affect your credit when they impact your financial situation.

Wait so if I file for an extension I still need to pay what I think I might owe? How do I even calculate that without my W-2??

Yes, you're expected to make a good-faith estimate of what you might owe and pay that amount when you file the extension. Without your W-2, you can estimate based on your final paystub of the year, which usually has year-to-date information. Most paystubs show how much federal tax was withheld throughout the year. If you don't have your last paystub, you could also estimate based on last year's return if your income situation was similar, or check your bank deposits to calculate approximately what you earned and estimate taxes from there. Even if your estimate isn't perfect, showing that you made a reasonable effort to comply will usually help reduce penalties.

I thought Solo 401ks were only for self-employed individuals without employees. Doesn't an S-Corp usually have at least the owner as an employee? Would this still work if the owner is the only employee?

You're right to question this - I should have been more specific. A Solo 401k can work for an S-Corp if the only employees are the owner (and potentially their spouse). If the S-Corp has any other W-2 employees who work more than 1,000 hours per year, then you'd need a regular 401k plan with non-discrimination testing. If OP only has themselves (and possibly their spouse) as employees, then the Solo 401k is still an option and could allow for higher contribution limits than a SEP IRA in many cases, especially when you consider both the employer and employee contribution components.

Not a dumb question at all, but with an S-Corp, the home office deduction works differently than for sole proprietors. The corporation should reimburse you for the home office expenses rather than taking them directly on your personal return. The S-Corp can deduct the reimbursement and it's not taxable income to you if done correctly.

Omg you're so right about the state taxes! I didn't even think about that. And no, I don't recall seeing a PTIN anywhere on our returns but I'll double check. When we confronted him about the federal audit, he didn't mention anything about potential state issues either. Should I be contacting the state tax agency proactively or wait until after dealing with the federal audit?

I'd recommend dealing with the federal issue first since that's the immediate concern with the audit notice. However, you should at least pull copies of your state returns to review them. Most states have processes for amending returns similar to the IRS. Once you have your federal situation under control with proper representation, your tax professional can help address the state issues too. They often go hand in hand, and many of the same corrections will apply to both. Just make sure to keep documentation of everything - communications with the preparer, the audit notice, and any amendments you file. This will help show your good faith efforts to correct the situation.

This is key advice! When I went through my audit, I had all my communications with my sketchy preparer saved in a folder. The IRS agent specifically asked for evidence that I relied on professional advice, and those emails where my preparer assured me everything was "standard practice" made a huge difference in the outcome.