I actually went through this last year with my S-Corp. Something important I learned - if your new owner is a non-US citizen or certain types of entities, you could accidentally terminate your S election! Make sure your new member is a qualified S-Corp shareholder. Also, depending on your state, you might need to file amended articles of organization with the state. In California, for example, we had to file a Statement of Information update when our ownership changed.

One thing to keep in mind that I haven't seen mentioned yet - when you take distributions as an S-Corp, they need to be proportional to ownership percentages. You can't just decide to give one owner more distributions than another based on their contribution or work in the business. Also, make sure you're both taking reasonable salaries as W-2 employees if you're both actively working in the business. The IRS scrutinizes S-Corps that try to avoid payroll taxes by taking everything as distributions instead of salary. The salary requirement applies to all owner-employees, not just the original owner. For your specific situation with the mid-year ownership change, document everything thoroughly - the date of the change, the reason for it, how you determined the new ownership percentages, and keep copies of all amended corporate documents. This documentation will be crucial if you ever face an audit.

As a small business owner who went through this exact same research process last year, I can definitely relate to the frustration of trying to find comprehensive GVWR lists for tax purposes. One thing I discovered that might help is that many state DMV websites actually maintain vehicle databases with GVWR information since they use it for registration and licensing purposes. For example, the California DMV has a searchable database that includes weight specifications for commercial vehicle classifications. Also, don't overlook some of the mid-size pickup options that have been redesigned recently. The new Chevy Colorado and Ford Ranger, particularly in crew cab configurations with 4WD, often hit that 6,000+ lb threshold despite being smaller than full-size trucks. They might be perfect for landscaping work since they're more maneuverable than the big rigs but still qualify for the tax benefits. One practical tip: if you're planning to buy in the next few months, consider reaching out to local commercial vehicle dealers rather than regular consumer dealerships. They deal with fleet purchases and tax considerations constantly, so they usually have current GVWR charts readily available and understand the business tax implications better than typical car salespeople.

As someone who just went through this exact process for my consulting business, I wanted to share a resource that really streamlined my research. The NADA (National Automobile Dealers Association) website has a commercial vehicle section that maintains updated GVWR specifications specifically for tax and fleet purposes. What made my search easier was focusing on vehicles that are well above the 6,000 lb threshold rather than those that barely qualify. For example, most full-size SUVs like the Chevy Tahoe, Ford Expedition, and Toyota Sequoia typically have GVWR ratings around 7,300-8,600 lbs, giving you a comfortable margin above the requirement. One thing I learned that might save others time - if you're looking at hybrid or electric versions of traditional trucks/SUVs, they almost always qualify because the battery weight pushes them well over 6,000 lbs. The Ford F-150 PowerBoost hybrid, for instance, has a higher GVWR than the regular gas version. Also worth noting that some credit unions and business banks offer special financing rates for vehicles that qualify for Section 179, since they're considered business equipment purchases rather than consumer auto loans. Saved me almost a full percentage point on my loan rate just by mentioning the tax deduction eligibility when I applied.

I wanted to share some additional perspective on this situation. Your cousin should know that the IRS actually has something called the "Voluntary Disclosure Practice" which can provide some protection when taxpayers come forward proactively about unfiled returns, especially when there are legitimate reasons for the non-compliance. Given that she was in an abusive relationship in 2019, this could potentially qualify as "reasonable cause" for penalty relief. The IRS Publication 1 specifically mentions that "circumstances beyond the taxpayer's control" can include situations involving abuse. She should definitely document the timeline of her situation as thoroughly as possible. One practical step she can take right now is to call the IRS at 1-800-829-1040 and request a "wage and income transcript" for 2019. This will show her exactly what income documents the IRS has on file (W-2s, 1099s, etc.) so she knows what she's working with before filing. It's completely free and doesn't trigger any collections activity. Also, if she's worried about affording professional help, many communities have Volunteer Income Tax Assistance (VITA) programs that provide free tax preparation for people who qualify. While they typically focus on current-year returns, some sites can help with prior years too. The key thing is that she's taking action now - that alone puts her in a much better position than if the IRS had to come looking for her first.

I just wanted to say how heartwarming it is to see this community rally around someone in need with such detailed, compassionate advice. Your cousin is fortunate to have you looking out for her during this challenging time. One additional resource that might be helpful is the Taxpayer Advocate Service (TAS) - it's an independent organization within the IRS that helps taxpayers who are experiencing economic difficulty, hardship, or who haven't been able to resolve their tax issues through normal IRS channels. Given your cousin's circumstances with the abusive relationship, she might qualify for their assistance. They can often help navigate complex situations and work directly with the IRS on the taxpayer's behalf at no cost. The TAS has local offices in every state, and they're specifically designed to help people who are facing significant hardship. You can find more information on their website or by calling 1-877-777-4778. What strikes me most about this thread is how many people have shared their own experiences with similar tax issues - it really shows your cousin that she's not alone in this situation. The combination of filing voluntarily, potentially qualifying for penalty relief due to her circumstances, and having multiple professional resources available gives her a strong foundation for resolving this successfully. She's already taken the hardest step by recognizing the issue and seeking help. Everything else is just logistics that can be worked through with the right support.

This entire thread perfectly explains something I've been confused about for months! I have both an FSA and an HSA through different employers (I switched jobs mid-year), and I was driving myself crazy trying to figure out where both benefits showed up on my tax forms. After reading all these explanations, I finally understand that both my FSA and HSA contributions were already excluded from my Box 1 wages before my W-2s were even generated. The tax benefit happened "invisibly" through reduced taxable income, not as something I need to claim or deduct when filing. What really sealed it for me was the suggestion to compare year-end paystubs to Box 1 amounts. When I did that calculation, everything matched up perfectly - the difference between my gross pay and Box 1 wages exactly equaled all my pre-tax deductions combined. Thanks everyone for breaking this down in so many different ways. Sometimes it takes hearing the same concept explained from multiple angles before it finally clicks!

This thread has been a lifesaver! I've been pulling my hair out trying to figure out the same FSA issue. What really helped me understand it was when someone mentioned that FSA contributions aren't a "tax deduction" in the traditional sense - they're pre-tax exclusions from income. I think the confusion comes from how we typically think about tax benefits. Usually when we hear "tax benefit," we expect to see a line item somewhere on our tax return that reduces our tax bill. But with FSA (and 401k, health insurance premiums, etc.), the benefit happens upstream in the payroll process before taxes are even calculated. So when you contribute $2,000 to your FSA, you're not getting a $2,000 deduction on your tax return - instead, your employer is reporting $2,000 less in taxable wages on your W-2. The tax savings happen automatically through reduced withholding throughout the year, which is why it feels "invisible" when you're filing your return. I wish payroll systems or tax software would show this more clearly with something like "Pre-tax benefits already applied: $X,XXX" but I guess once you understand how it works, it makes perfect sense!

I'm about 8 weeks into this same waiting game and it's absolutely maddening! What really gets me is that the IRS can instantly flag suspicious activity on your personal return, but they can't give you a simple status update on a business election form that could fundamentally change your tax obligations. I ended up sending a certified mail duplicate last week with "DUPLICATE - ORIGINAL SENT 2/1/25" written in red ink across the top. At least now I have tracking confirmation that they received *something*. One tip I learned from my CPA: start treating yourself as if the S-Corp election is already approved for operational purposes (reasonable salary, payroll taxes, etc.) but keep meticulous records of everything in case you need to unwind it. The retroactive approval should cover you if the election eventually goes through, and if it gets rejected, you'll have clear documentation to sort out the mess. Has anyone tried reaching out to the Taxpayer Advocate Service for help with this? I'm wondering if they consider delayed entity election processing as something they'd intervene on, especially when it's affecting business operations and tax compliance decisions.

I'm dealing with this exact situation right now and it's been such a source of stress! Filed my Form 2553 about 9 weeks ago and haven't heard a peep from the IRS. What's particularly frustrating is trying to plan quarterly estimated taxes when you don't even know what entity type you'll be filing as. I tried the Business & Specialty Tax Line multiple times but kept getting disconnected after 2+ hour waits. Finally got through last week using that early morning strategy someone mentioned - called right at 7am Eastern and only waited about 45 minutes. The agent could see my form in their system but couldn't give me any processing timeline beyond "it's still being reviewed." One thing that's been helpful is creating a spreadsheet tracking both LLC and S-Corp tax scenarios for my quarterly estimates. I'm essentially preparing for both possibilities and will pay the higher amount to avoid any underpayment penalties. It's frustrating to have to hedge like this, but at least it gives me some peace of mind. For anyone still waiting - the agent did mention that most entity elections filed within the proper timeframe do eventually get approved, it's just a matter of when. Still doesn't make the waiting any easier though! Has anyone had luck getting status updates through their tax professional rather than calling directly?