LLC as S-Corp never received notice...

[DCRoyal]

I have an LLC I petitioned to have treated as an S-Corp before the deadline for this tax year.  In the meantime, COVID and a last second move caused me to completely forget about the S Corp election. I have not received the notice that would have reminded me - possibly because it wasn’t forwarded. I did call the IRS today to check on my status and it said as of August 17 I was noticed that I would be treated as an S Corp.  

All of that to say, I just realized this - literally today - as I was making my final estimated tax payment. I never took any action to set up payroll, pay myself a W2 or pay payroll taxes.  I’ve not taken any dividends in the technical sense, but I’m pretty significantly cash flow positive.  I’ve paid my self employment tax thru my personal estimated tax payments so I should be covered except for unemployment tax. 

I’m going to consult my CPA, but In the meantime I am curious if anyone else has been in the situation,  and how they mitigated it. This was obviously unintentional and compounded by a pandemic and a move - but still ultimately my responsibility. 

[Critter-3]

Talk to the CPA but since the 4th quarter payroll forms are not filed until 1/31 you may be able to take a salary/wage after the fact and file a late 3rd quarter payroll form with zero income. 

[AmeliesUncle]

If you were taking money out of the corporation for personal expenses, you WERE paying yourself wages (and possibly distributions).  You just didn't file the forms with the IRS reporting that.  So now you need to file them now (and you will owe late penalties).

[Mike9241]

the CPA will probably ask you to choose.  file late payroll tax returns and pay the penalties or take no salary for the first year and accept the risk.