One thing nobody's mentioned yet is that having an S-Corp adds a whole layer of complexity beyond just regular business taxes. I learned this the hard way. I started with a regular tax preparer, got audited, switched to a CPA, and still had issues with how my self-employment income vs S-Corp distributions were being handled. Only when I finally consulted with a tax attorney did I learn that my operating agreement had serious flaws that were causing tax problems. For me, the ideal setup has been using a tax attorney to set up the proper legal structure and documentation, then having a CPA handle the regular filings and planning. The attorney costs more but only needed occasional consultation, while the CPA handles the ongoing work.

Honestly depends on your asset size. If your company is making under $1M annually, a good CPA is more than enough. As you grow beyond that, especially if you're acquiring other businesses or have complicated ownership structures, a tax attorney becomes more valuable. Starting with a highly qualified CPA with S-Corp specialization is the most cost-effective approach. If they start saying things like "this is beyond my expertise" or "you might want a legal opinion on this," that's when you bring in a tax attorney for those specific issues. Don't waste money on attorney fees for routine matters a CPA can handle perfectly well. Just make sure you have a CPA who primarily works with businesses, not one who mostly does individual returns and occasionally handles business clients.

I'm a tax pro and I handle these Premium Tax Credit verification requests pretty regularly. Here's what you need to know: 1) Since you're not listed as the preparer, the IRS won't discuss anything with you without a Form 2848 (Power of Attorney). 2) However, your fiancée can simply sign the letter herself and include copies of all requested documents. No POA needed if she's the one submitting it. 3) Make sure you include the EXACT letter they sent her with your response. 4) If there's a reply envelope, use it. Otherwise clearly write her SSN and tax year on everything you send. 5) Keep copies of EVERYTHING and send it certified mail so you have proof of when it was delivered. The Premium Tax Credit verification is pretty routine - just include the 1095-A, Form 8962, and any other supporting docs they asked for. No need to overcomplicate it!

I dealt with this exact situation last year with my wife's return and Premium Tax Credit! The issue was that the 1095-A from the marketplace didn't match what we reported on Form 8962. Since you already have a PTIN, definitely file the 2848. Here's why: If there are any follow-up questions (which happened in our case), you can call the IRS directly instead of having to relay messages through your fiancée. Just make sure on the 2848 you specifically list "Form 1040" and the specific tax year, and also mention "Premium Tax Credit" in the description section. Being specific helps avoid any confusion about what you're authorized to discuss.

Something to consider - while the IRS might not care which account you use, your state might have different requirements for partnerships. In California, for example, if you're operating under a name different from your personal names, you need to file a Fictitious Business Name statement and some banks require that for opening an account. Also, depending on what you're selling, you might need collection permits for sales tax. Those applications sometimes ask for business banking information.

I'm using QuickBooks Self-Employed for my side hustle and it lets me tag transactions as business or personal even though everything runs through my personal checking. Is there a similar tool that works well for partnerships specifically? Most of these apps seem designed for solo entrepreneurs.

For what it's worth, your choice between leaving the return as is vs amending really depends on the dollar amount difference. You can estimate the difference by running your info through a tax calculator both ways. If the difference is only a couple hundred bucks, personally I wouldn't bother with the amended return hassle. If it's $1000+, then it's probably worth doing. Remember that amended returns can't be e-filed and take 4-6 months to process right now.

Just adding my experience - I was in this exact situation last year (filed single when I should have been HOH). I filed an amended return and it took almost 7 months to get the additional refund. The IRS is super backed up with amended returns.

Just a pro tip on the Failure to File penalty - if your brother-in-law has a clean tax history for the past 3 years (filed and paid on time), he might qualify for First Time Penalty Abatement. The IRS doesn't advertise this much, but it's an administrative waiver they can grant. I had a similar situation in 2020 where I completely missed the filing deadline because of some family emergencies. Called the IRS, explained my situation, mentioned I had a clean record for the previous years, and they removed about $1,200 in penalties on the spot. Definitely worth asking about!

One important clarification - the Failure to File penalty is calculated as 5% per month of the UNPAID tax. If he paid most of what he owed and only had a small balance due, the penalties would be much smaller than if he paid nothing. For example, if he owed $10,000 but paid $9,000 with his late extension, the 5% penalty would only apply to the remaining $1,000 (so $50 per month rather than $500 per month if he paid nothing).