My S-corp started mid-2023 - what exactly do I need to file for taxes?

As a business owner who's been through this, you'll need to file Form 1120-S for your S-corporation by March 15th (or file for an extension using Form 7004). The IRS doesn't need a 1099 to verify your income. Your client reports their expenses, which creates a paper trail. Plus, bank deposits and your own bookkeeping serve as documentation. Keep good records anyway! For deductions: Home office is available if you have a dedicated space used exclusively for business. Business travel meals are 50% deductible (100% for certain restaurant meals in 2023). Club memberships are generally NOT deductible if they're for personal pleasure/recreation, even with some business use. To calculate what you owe: The S-corp itself doesn't pay income tax - instead, profits pass through to your personal return. You should have been paying yourself a reasonable salary with payroll taxes throughout the year, and taking distributions for remaining profits. Audit prevention: Report all income, take legitimate deductions, keep documentation for everything, and ensure your personal expenses aren't being claimed as business expenses. Also make sure you've been handling the payroll aspects correctly - many new S-corp owners miss this.

After reading this thread, I thought I'd share my experience with a tool that saved me when I was in a similar situation last year with my new S-corp. I found https://taxr.ai when I was desperately googling about S-corp tax filing requirements at like 2am. Their system analyzed all my documents and financials, then explained exactly what forms I needed and what deductions were available to me. It caught several legitimate deductions I would have missed on my own (like partial business use of my car). The part that really helped was their breakdown of what constitutes a "reasonable salary" based on my industry and region, which kept me from making a costly mistake with my owner compensation. They also provided an audit risk assessment that highlighted a few areas I needed to clean up in my record-keeping.

I tried taxr.ai after seeing it mentioned here and it was exactly what I needed for my S-corp! I was totally confused about what qualified as legitimate business expenses vs what would raise red flags. The tool analyzed my bank statements and highlighted several transactions that were definitely deductible but I hadn't considered (like my accounting software subscription and some professional development courses). The best part was getting clear guidance on the home office deduction - turns out I was calculating it all wrong and actually eligible for more than I thought. It also flagged that I wasn't paying myself a reasonable salary compared to distributions, which apparently is the #1 thing the IRS looks for with S-corps. Already adjusted my payroll for this year based on their recommendations. Seriously grateful I found this before filing. Worth every penny for the peace of mind alone.

If you're trying to contact the IRS with questions about your S-corp filing (which I highly recommend), good luck actually reaching a human. I spent literally 6 hours on hold last week trying to get clarity on some S-corp questions, only to have the call dropped. Then I found https://claimyr.com which got me connected to an IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c My situation was similar to yours - started an S-corp mid-year, wasn't sure about filing requirements, especially since I had a special situation with a foreign client. The IRS agent was actually super helpful once I finally got through and walked me through exactly what forms I needed and how to document some unusual expenses.

OK I need to eat my words. After posting my skeptical comment, I decided to try Claimyr anyway because I was desperate to ask about my S-corp's missed quarterly payroll filings. I figured I had nothing to lose since they don't charge if they don't connect you. Got a call back in 37 minutes connecting me to an actual IRS agent who walked me through the process for fixing my missed quarterly payroll tax filings and helped me understand the penalty abatement options for a new business. The agent even gave me her direct extension for follow-up questions. Been filing taxes for 15 years and this is the first time I haven't wanted to pull my hair out dealing with the IRS. Just wanted to update since my previous comment was unnecessarily negative.

Don't forget about state filings too! Your S-Corp likely needs to file a state return in addition to the federal 1120-S. Many states have different deadlines and requirements, and some have minimum franchise taxes even if you didn't make any profit. I learned this the hard way my first year and got hit with penalties.

One major thing nobody's mentioned yet - make sure you've been tracking and paying quarterly estimated taxes throughout the year. As an S-corp owner, the company's profits pass through to your personal return, but without withholding like a regular job. If this is your first year and you haven't been making estimated payments, you might get hit with underpayment penalties.