The good news is that penalties for corrections typically apply from when the correction is due, not the original deadline. Since you filed the original forms on time, and you're correcting within 30 days of the original deadline, you should be in the lowest penalty tier if they assess one at all. Often the IRS is reasonable about corrections, especially for small businesses making good-faith efforts to correct mistakes promptly. Make sure to keep documentation of when you discovered the error and how quickly you acted to correct it in case you need to show reasonable cause.

Oh no, I didn't even think about penalties! My original forms were sent before the deadline, but the correction is happening about 2 weeks after. Do they count the

Totally agree. I e-filed mine and even those took forever. I heard they're still catching up from staffing shortages and budget cuts.

Did you amend your 2020 return as well then? I'm in a similar situation where my 2019 amendment might affect my 2020 filing and I'm not sure if I should wait until the 2019 amendment is processed before filing my 2020 amendment.

I actually didn't need to amend 2020 in my case. The AGI change only affected my Recovery Rebate Credit calculation, which the IRS adjusted automatically when they processed my 2020 return. They sent a letter explaining the adjustment. However, your situation might be different depending on what's changing on your 2019 return and how it impacts 2020. If you have credits or deductions that carry over between years, you might need to amend both. I'd recommend completing your 2019 amendment first, calculating what your correct 2020 return should have been, and then determining if the difference warrants filing another amendment. You don't need to wait for the 2019 amendment to be fully processed before filing the 2020 amendment, but it helps to do them in order.

You generally have 3 years from the original filing deadline to file an amended return for a refund. For 2017 taxes, the original deadline was April 15, 2018, so you had until April 15, 2021 to amend for a refund. If you owe additional tax, the IRS has up to 6 years to assess if you underreported income by more than 25%.

Do they still try to sell you that "audit protection" add-on? They always made me feel like I was crazy for not wanting it.

Yes, they push the audit protection hard! It was an extra $45 last year. The preparer made it sound like I was practically guaranteed to get audited without it. I've declined it every year and (knock on wood) never been audited. They also try to upsell their "tax pro review" service which is another $89. Isn't that what I'm already paying them for by going to their office instead of using their software?

I use FreeTaxUSA for my rental properties and small business. It handles Schedule E perfectly and only costs $15 for state filing (federal is free). For casualty losses, they have a pretty good walkthrough. Saved me at least $600 compared to HRB.

Thanks for the suggestion. I've never heard of FreeTaxUSA - do they offer any support if you get stuck or have questions during the process?

Thanks for the direct links! Have you personally used the SSA's BSO system for late W-2 filings? Was it easy to navigate for someone who isn't super tech-savvy?

Yes, I've used the SSA's BSO system for late W-2 filings twice now. It's definitely designed with the average business owner in mind, not just for tech experts. The interface walks you through each step and clearly labels what information needs to go where. For late filings, there's a specific section where you'll see the original deadline and the system acknowledges you're filing late. It doesn't prevent you from proceeding. Just make sure you have all your business information and employee details ready before you start. You can save your progress and come back if needed, but having everything prepared makes it a much smoother process.

This is super important! I completely forgot about state W-2 filing and got hit with a $200 penalty from my state last year even though I filed the federal one.

Thanks for sharing these details! Are there any specific payroll services you'd recommend for a one-person S-Corp? And did you find any advantages besides the SE tax savings?

I use Gusto for payroll and it's pretty straightforward for a one-person operation. The interface is simple and they handle all the tax filings automatically. Some others use Square Payroll or OnPay, which are a bit cheaper. Beyond the SE tax savings, I've found some additional benefits. Having a business entity has helped me land bigger clients who prefer working with corporations over individuals. I can also now contribute to a Solo 401k as both employer and employee, which has increased my retirement savings options. The structure has also forced me to be more disciplined with my business finances and separate them properly from personal expenses.

Can you explain this a bit more? I thought QBI applied the same whether you're sole prop or S-Corp?