This is exactly what I suspected! Did they actively tell you guys to avoid mentioning that you weren't CPAs? Or were you trained to handle questions about credentials?

We were trained to say we were "certified tax preparers" which sounds impressive but really just meant we completed the company's internal training program. If directly asked if we were CPAs, we had to answer truthfully, but the script was to pivot to "I'm a trained tax professional with X years of experience using our proprietary software." Management knew most clients assumed we were CPAs or had accounting degrees, and they definitely didn't discourage that misconception. During training, they emphasized that we should highlight our "certification" and experience with the tax software rather than discussing formal credentials. It was deliberately misleading without technically lying.

That's actually a really smart approach. How do you find a CPA willing to do just a review rather than insisting on preparing the whole return? When I've asked in the past, they all wanted to do the complete service.

Thank you for this info! I'll definitely check the affordability calculation. My 1095-C shows coverage was offered starting in April, but my 1095-A covers January through December. So it sounds like I might need to repay premium tax credits just for April-December? The numbers on my tax return seem higher than that though.

You've got it right - you would only need to repay premium tax credits for the months when affordable employer coverage was available (potentially April through December in your case). If your tax software or calculation is showing a higher repayment amount, it might be incorrectly assuming you were ineligible for the entire year. Form 8962 (Premium Tax Credit form) allows you to do a month-by-month calculation. Make sure you're completing Part IV of that form correctly to allocate by month rather than using the annual calculation. This is a common area where tax software can get things wrong if the information isn't entered precisely.

Form 8965 isn't used anymore for tax years after 2019. The individual mandate penalty is $0 now at the federal level (though some states still have their own penalties). You're thinking of the old system. The issue here isn't about avoiding a penalty but about whether they have to repay premium tax credits they received.

Do you need to have a dedicated space for a home office deduction, or can you use your living room/kitchen table etc. for different jobs? I'm thinking about taking on freelance work but don't have a separate room I can use exclusively.

For a home office deduction, the IRS requires that the space be used "regularly and exclusively" for business. This means you need a dedicated space - it doesn't have to be an entire room, but it needs to be a specific area used only for work. A corner of your living room can qualify, but only if that specific section is used solely for business and nothing else. If you're tight on space, even a dedicated desk that's never used for personal activities could potentially qualify. Just be aware that home office deductions can be a red flag for audits, so make sure you take photos of your setup and keep excellent records of your business use of the space.

What's the minimum income level where this S-corp approach makes sense? I'm making about $65k from various gigs and wondering if it's worth the hassle.

Does the IRS ever negotiate during the process? Like if they reject your initial amount, do they come back with a counter offer or just flat out reject you?

Yes, the IRS frequently counters with what they consider a more reasonable amount based on their calculations. If they think your offer is too low, they'll often send a letter explaining why they can't accept it and propose a higher amount they would accept. It's not like a flat rejection in most cases - it's more of a negotiation. When this happens, you can either accept their counter, submit a new offer with additional documentation to justify your original amount, or withdraw your offer entirely. This is why having your documentation solid from the start is essential.

Is there a specific form for offer in compromise or do you just write a letter explaining your situation?

Thanks for the additional suggestions! I actually don't use a payroll provider since it's just one employee (family member), but I'll check with the local print shop tomorrow. I do have QuickBooks but only the basic version - I'll see if it has W2 filing capabilities.

QuickBooks Basic should have W2 capabilities, but you might need to purchase their payroll add-on to access it. It's usually around $50 for a basic filing service, which might be worth it for the convenience. Local print shops that cater to businesses are often overlooked resources for tax forms. They typically understand the requirements better than the big box stores and might be willing to sell you just the forms you need rather than a bulk pack.

That's not entirely accurate. The deadline is January 31 for BOTH giving forms to employees AND for filing with the SSA. The February 28 deadline was changed several years ago. Don't want OP to get penalized by following outdated info!