I filed my personal taxes and included all my business information on Schedule C. The IRS is telling me that I am an S-corporation and that I have to file corporate income tax and redo my personal taxes. I don't even know where to begin. One IRS person told me that I am already 3 months behind on filing the corporate tax form so I can anticipate large fines and penalties. I am just a person with one 1099 client, soon to be zero. I don't know what this S-corporation business is all about.
If you are not going to seek help from a local professional and you are going to clear up this mess yourself ...
Step 1 - when you applied for the EIN you must have chosen the S-Corp option which requires you to file an 1120-S form not just a Sch C on the from 1040. Check the IRS notice you should have received telling you this.
Step 2 - file the 1120-S as required then when the IRS sends the penalty notice ask for forgiveness siting your ignorance of the requirement ... they usually forgive you the fist time you file late.
Step 3 - amend the personal return adding the K-1 form from the 1120-S and remove the incorrect Sch C.
The 1120-S requires the TT Business program to complete it : https://turbotax.intuit.com/small-business-taxes/
Did you set up a Single Member LLC or get an EIN number? You must have checked a box on a form for S corp. You should probably go to a local CPA or accountant and see what to do.
My Maine paperwork says that I am a single-member LLC. I'm having trouble finding anyone local who does this kind of work. But maybe it doesn't need to be someone local? I live in a remote area.
If you are not going to seek help from a local professional and you are going to clear up this mess yourself ...
Step 1 - when you applied for the EIN you must have chosen the S-Corp option which requires you to file an 1120-S form not just a Sch C on the from 1040. Check the IRS notice you should have received telling you this.
Step 2 - file the 1120-S as required then when the IRS sends the penalty notice ask for forgiveness siting your ignorance of the requirement ... they usually forgive you the fist time you file late.
Step 3 - amend the personal return adding the K-1 form from the 1120-S and remove the incorrect Sch C.
The 1120-S requires the TT Business program to complete it : https://turbotax.intuit.com/small-business-taxes/
Thank you!
Step 1 - I never got any such notice, but that seems like the most likely explanation.
Step 2 - The 1120-S is full of stuff I didn't do, stuff related to unemployment, payroll - because I didn't think I was a corporation. I should leave all that blank? It seems like that's asking for trouble.