Thanks for this insight! Do you think it's reasonable to negotiate a rate increase after I've completed a certain number of returns or after a specific time period?

Absolutely! That's a very common arrangement. You could propose starting at a lower rate while training (maybe $30-35/hour), then bump up to $40-45 after you've successfully completed 10-15 S Corp returns or after the first month, whichever comes first. Just make sure to get this agreement in writing before you start. Many CPAs will happily agree to this structure since they expect you'll become more valuable as you gain experience with their specific clients and processes. It also gives you a built-in opportunity to revisit compensation without having to initiate an awkward conversation later.

Good point. When I subcontracted, the CPA provided access to their Drake software through a remote login, but I had to use my own computer and internet. Some may expect you to have your own ProSeries or UltraTax license which would be crazy expensive for a subcontractor.

What supporting documents did you need to include? I'm not sure what to attach with mine.

It depends on what you're amending! For my situation, I was adding some dividend income I missed, so I included the corrected 1099-DIV form. Generally, you should include any documents that support the specific changes you're making. If you're changing income, include the corrected income statement. If you're adding a deduction, include receipts or documentation of those expenses. If you're changing filing status, include documentation that supports that change. The IRS instructions for Form 1040-X have a good section on what to attach. If you're not sure, include more documentation rather than less - better to give them everything they might need than to have them request additional info later.

Omg thank you so much for this insider perspective! That's honestly such a relief to hear. I've been losing sleep over this and its good to know I'm not on some automatic audit list. I'll make sure to be super clear about why I'm filing the amendment and include everything they might need!

Do you know if there's any difference in processing time between major banks and smaller credit unions? Mine sometimes takes longer for ACH transfers.

Yes, there can definitely be differences. Larger banks typically process ACH transfers (which is what IRS payments are) more quickly - usually within 24 hours of receiving them. Smaller credit unions sometimes batch their ACH processing and might only run them once per day, which can add a delay of up to 24 hours. If you're with a smaller credit union, I'd add an extra day to the expected processing time just to be safe. So if the IRS schedules the withdrawal for the 15th, it might not actually hit your account until the 17th or 18th at a smaller institution.

If your payment bounces, the IRS will send you a notice and charge you a penalty - usually about 2% of the payment amount. They'll also charge interest on the unpaid amount until you pay it. Plus your bank will probably charge you an NSF fee too.

14 Would that still work if it's been more than 2-3 years? I thought there was some deadline for removing excess contributions without penalties.

5 You're right that there's a deadline for removing excess contributions without the 6% penalty - it's typically by the tax filing deadline plus extensions (around October 15th) for the year of the contribution. Since the OP's situation involves contributions from 2020-2022, they would likely still owe the 6% penalty for each year the excess remained in the account. However, most IRA providers can still process the removal of excess contributions even after this deadline. The benefit is that removing the excess now stops the 6% penalty from continuing to apply to future years.

2 This is terrible advice. The IRS receives direct reporting of IRA contributions from financial institutions. If their systems flag a mismatch between your reported income and Roth eligibility, it'll trigger an automated notice. Besides, the penalties compound the longer you wait. Better to fix it proactively than risk bigger headaches down the road.

That's interesting - I've heard about opportunity zones but don't really understand how they work. Would this only help if he's selling property with capital gains, or can it help with his regular business income too? And are there any risks involved?

Opportunity zones primarily help with capital gains, not ordinary business income. If your brother-in-law sells property, equipment, or even business interests at a profit, he could defer those capital gains taxes by reinvesting in a qualified opportunity zone fund within 180 days of the sale. The main risks include market risks (as with any investment), liquidity constraints (funds typically have 10-year holding periods for maximum benefits), and potential regulatory changes since this is a relatively new program. There's also geographic limitation since investments must be in designated opportunity zones. I'd definitely suggest talking with both a financial advisor and tax professional before pursuing this strategy.

This is especially useful if your brother-in-law owns the buildings where his business operates. My construction company did a cost seg study on our headquarters building and main warehouse. We were able to reclassify about 35% of the assets from 39-year property to 5 or 7-year property. Massive tax deferral benefit.