Thank you!! This is exactly what I needed to know. When you made the switch, did you have to wait for formal approval before filing your taxes as an S-Corp, or could you file that way based on having submitted the election form?

When I submitted my Form 2553, I did wait for the formal approval letter before filing my taxes as an S-Corp. However, if you've submitted the form and tax season is approaching, you have options. You can file an extension to give yourself more time to resolve this. This doesn't extend your payment deadline, but it gives you until October to file the actual returns. In the meantime, you can keep following up with the IRS about your election status. If you're confident you submitted everything correctly, you could also proceed with filing as an S-Corp, attaching a copy of your submitted Form 2553 to your return with an explanation that it's pending approval.

For 2024, you needed to file Form 2553 within 2 months and 15 days of the beginning of the tax year (so by March 15, 2024 for calendar year businesses). But you can still file late with a "reasonable cause" statement explaining why you missed the deadline, and the IRS may accept it. Or you can just make the election for 2025 instead.

Thanks for the info! Guess I missed the deadline for this year. I'll probably just plan to do it for 2025 rather than trying to explain a late filing. Do you know if I should file it now for next year or wait until January?

Thanks for suggesting the Taxpayer Advocate Service! Have you heard if they're also dealing with major backlogs like the regular IRS departments? I'm wondering if it's worth contacting them now or waiting until I'm physically back in the US next month.

They definitely have backlogs too, but in my experience, they're still faster than waiting for the regular IRS channels to resolve issues. If you contact them now, they might be able to start your case so that by the time you're back in the US, they'll be ready to work with you more directly. One important tip: when you contact them, be very specific about the financial hardship the delay is causing. They prioritize cases partly based on the level of hardship, so if this money is important for your relocation or getting established back in the US, definitely mention that.

'Where s My" Refund has limited historical data - it usually only shows information for the current tax year and sometimes the previous one. For older refunds, especially from streamlined filings, it probably'won t show anything helpfulnow.

Oh that's something I hadn't considered at all! I bought the furniture back in October but didn't actually set it up and start using it until November. Does the "placed in service" date mean when I bought it or when I actually started using it? And what's this half-year convention thing?

The "placed in service" date is when the property is ready and available for its intended use - so that would be November when you set it up, not when you purchased it in October. The half-year convention is a simplification rule that assumes you placed assets in service halfway through the year, regardless of when you actually started using them. So for the first year of a 7-year property with straight-line depreciation, you'd take 1/14th of the cost (half of 1/7th). However, if you place more than 40% of your total assets for the year in service during the last 3 months, you have to use the mid-quarter convention instead, which is more complicated and bases your first-year depreciation on which quarter you placed the asset in service.

I use TurboTax Self-Employed and it handles depreciation pretty well. When you get to the business expenses section, there's a separate category for assets that need to be depreciated. Just follow the prompts and it'll ask for purchase date, cost, and business use percentage. It automatically applies the correct MACRS schedule for office furniture (7 years). Office furniture isn't "listed property" so you'd select "no" for that question.

That's amazing! I didn't know about this policy. Do you know if it would apply to my situation since I missed 2021 and 2022? Could I get the penalties waived for just 2021 or would it not work since I missed multiple years?

The First Time Penalty Abatement typically only applies to the first tax year in which you had an issue, so in your case, it would likely only apply to 2021. It wouldn't cover 2022 because by then, you no longer had a "clean compliance history" due to the 2021 issue. The good news is that getting the penalties waived for even one year can make a significant difference. For your 2021 tax year, this could potentially save you hundreds or even over a thousand dollars depending on your original tax amount. After you file all your returns, you can call the IRS and specifically request a "First Time Abatement" for the 2021 tax year. Just make sure you've filed all your back taxes before making the request.

I used FreeTaxUSA for my previous year returns and it worked great. They charge like $15 for prior year federal returns and their interface is easy to use. You just need to make sure you're in the right tax year when you start - they have separate sections for each year.

Thank you for mentioning this! I was wondering about the documentation part. Do you recommend keeping these records for the standard 3 years like regular tax returns?

I actually recommend keeping extension documentation for at least 6 years, even though the standard recommendation for most tax records is 3 years. The reason is that extension issues can sometimes take longer to surface. Plus, these documents don't take up much space digitally. I create a tax folder for each year with subfolders for "Extension" and "Final Return" and keep all confirmation numbers, screenshots, and payment records organized there. It's saved me more than once when questions came up years later.

I switched from TurboTax to FreeTaxUSA two years ago and haven't looked back. They handle K-1s just fine in my experience (I get one from an S-Corp). Their interface for recording extension payments is actually more straightforward than TurboTax too - it's right in the "Payments" section and clearly labeled. Federal filing is free and state is only around $15. For extensions, they guide you through the same Form 4868 process.