I'm dealing with this exact same situation right now! Started my LLC in late 2022, got the EIN, then life happened and I never actually did anything with it. Reading through everyone's experiences here has been incredibly helpful. One thing I'm still unclear on though - if I had zero income and zero expenses for both 2023 and 2024, do I need to file "final" returns for both years, or can I just file one final return for 2024 that covers the closure? I never filed anything for 2023 since there was no activity, but now I'm wondering if that was a mistake. Also, has anyone dealt with closing an LLC that was registered in one state but you've since moved to a different state? I'm not sure if I need to handle the dissolution in my original state of registration or if my current state of residence matters at all. The state-specific requirements seem to vary so much - some of you mentioned newspaper publications, others just mentioned filing articles of dissolution. It's making me realize I really need to research my specific state's requirements carefully.

I went through this exact situation with my LLC that I formed in 2023 but never operated. Here's what I learned from working with a tax professional: First, yes you absolutely need to file a final tax return even with zero activity. The IRS considers your LLC "active" from the moment you got your EIN until you properly close it. For a single-member LLC, you'll file Schedule C with your personal tax return and check the box indicating it's a final return. The tricky part is that you may also owe penalties for not filing returns in previous years, even with no activity. I had to file late returns for 2023 (paying small penalties) before I could file my 2024 final return. The penalties were around $200 per year for late filing, but it was worth it to get everything properly closed. Don't forget the state side - this was the most expensive part for me. Even though I never operated, I still owed annual fees and had to pay a dissolution fee. In my state (California), this ended up costing me about $800 in back fees before they'd let me dissolve. My advice: start the process immediately. The longer you wait, the more annual fees and potential penalties accumulate. I wish I'd done this two years ago when I first abandoned the business idea. Also, consider getting a tax pro to help - it's worth the cost to make sure you don't miss anything important.

Colorado DOR implemented enhanced fraud detection algorithms for TY2023 returns that are causing systematic delays across the board. Their internal processing queue prioritizes certain return types based on complexity factors and verification requirements. I've observed that returns with Schedule E income or non-W2 earnings are experiencing the longest delays, while simple returns with only W-2 income are moving through faster. If your AGI exceeds certain thresholds or you've claimed specific deductions like business expenses, expect additional verification steps. The system is functioning as designed, just with significantly reduced efficiency compared to previous filing seasons.

As a new Colorado resident (moved here last year), I'm experiencing this exact same issue! Filed my federal and Colorado returns on the same day in mid-February - federal was processed in 8 days, but Colorado is still showing "processing" after 6 weeks. This is so frustrating because I budgeted for receiving both refunds around the same time based on what friends told me about typical processing times. It's reassuring to know this is a widespread issue and not something specific to my return, but the lack of transparency from Colorado DOR is really disappointing. Other states seem to provide much better communication about delays and expected timelines. Has anyone found any official statements from the state about when they expect to catch up on the backlog?

Former H&R Block employee here. The price difference exists because the downloadable version (sold on Amazon) and the online version are technically different products with different target customers. The downloadable version is cheaper because it's designed for people who use the same tax software year after year and are comfortable with tax prep. It also doesn't include all the hand-holding and live help features. The online version charges more because it includes more interactive guidance, the ability to start on one device and continue on another, and usually some form of support. They're essentially charging for convenience.

One major difference nobody's mentioned yet is that the website version of H&R Block regularly updates throughout tax season if tax laws change. With the Amazon download version, you might need to manually check for and install updates. This became a big issue during COVID when tax laws were changing rapidly and some people using downloaded software missed some benefits because they didn't update.

One strategy I haven't seen mentioned yet is looking into Defined Benefit pension plans if your S-corp has consistent high profits. While Solo 401ks are great, DB plans can allow much higher contribution limits - sometimes $200k+ annually depending on your age and income level. The catch is they're more complex and expensive to administer, requiring actuarial calculations and annual filings. But if you're consistently generating substantial profits and want maximum tax-deferred savings, they can be incredibly powerful. You'd need to commit to funding the plan for several years, but the tax savings can be substantial. I set one up for my consulting S-corp three years ago and it's been game-changing for managing tax liability during high-income years. The key is working with a specialist who understands both the pension rules and S-corp taxation to make sure everything is structured properly. Worth exploring if traditional retirement plans aren't handling enough of your excess profits.

This thread has been incredibly helpful - I'm in a similar situation with my S-corp and had been researching the same investment strategy. It's disappointing to learn that keeping profits in the company doesn't defer personal taxation, but the alternative strategies mentioned here are exactly what I needed to hear. The retirement plan discussion is particularly valuable. I had been focused on traditional 401k limits but hadn't considered Solo 401k employer contributions or the potential for DB plans. @Jade Santiago, your experience with the defined benefit plan is eye-opening - I'm definitely going to explore that option given my consistent income levels. One question for the group: has anyone dealt with state tax implications of these strategies? I'm in California and wondering if the state treatment of S-corp pass-through income and retirement contributions aligns with federal rules, or if there are additional considerations I should be aware of when planning these strategies. Also want to echo the positive feedback on both taxr.ai and Claimyr mentioned earlier - I tried both after reading this thread and they were genuinely helpful for getting personalized guidance rather than generic advice.

I'm dealing with a very similar situation right now! Got my W-2 last week with the same FF code showing $1,800, and like you, I have zero health benefits through my employer. I'm also primarily reimbursed for mileage when I travel to client sites. What's really frustrating is that my employer's HR department seems just as confused as I am. They keep saying "the payroll company handles all that stuff" but won't give me direct contact information to follow up myself. One thing I noticed when I calculated my mileage reimbursements for the year - it comes out to almost exactly $1,800, so I'm pretty convinced this is a coding error where they used FF instead of whatever code should be used for business mileage reimbursement. Have you had any luck getting through to the payroll company directly? I'm wondering if I should just contact them myself since my employer doesn't seem motivated to resolve this quickly. The tax deadline is approaching and I really don't want to file with incorrect information.

I work as a tax consultant and see this exact scenario probably 5-6 times every tax season. The FF code is supposed to indicate a QSEHRA benefit, but what's happening here is almost certainly a payroll system miscoding of your mileage reimbursements. Here's what likely happened: When your employer set up their payroll system or switched providers, someone incorrectly mapped your mileage reimbursement category to the FF code instead of leaving it unreported (since proper business mileage reimbursements at the standard IRS rate shouldn't appear on your W-2 at all). The dead giveaway is that your $2400 amount is right in line with typical annual mileage reimbursements for someone who drives regularly for work. A legitimate QSEHRA would usually be communicated clearly to employees since there are specific rules about how you can use those funds. My advice: Don't wait around for your employer to figure this out. Contact the payroll company directly if possible, or give your employer a firm deadline (like "I need this resolved by [specific date] or I'm filing for a tax extension"). Document everything in writing. If it's confirmed as an error, insist on a W-2c before filing your return. The good news is this type of error is very common and easily correctable - just don't file your taxes with the wrong information if you can avoid it.