I mailed my 1120S return completed in Turbo tax business in mid February but IRS has not acknowledged receipt. Do I need to delay filing my personal return?

[jlondon11]

I could no submit electronic return because Turbotax would not upload my signed 199A Statement and Maryland Returns were not approved yet.

[ZoltanB45]

You do not want to file your individual return prior to the 1120S being accepted. It will further confuse their whole process.

I will assume that the IRS will have processed your return by the 16th or 17th of March, as they will be proactive in seeing who is a day late in filing. Contact them again by the 17th and see if they have a record of receiving it.  Wait until they have it before filing your 1040. Obviously do not wait beyond the April 18th deadline.

[jlondon11]

The return has been sitting in a PO box for 3 weeks.  (II Sent Certiried return signature required)  What if they don't process by mid April.  Perhaps I should just file for an extension? According to the IRS website, Corona Virus has everyone working at home.  I had to paper file my Maryland return as well because Turbo tax did not have forms approved for Maryland yet.  I assume I need to delay filing the Maryland return as well?

[ThomasM125]

I don't think it is necessary to delay filing your personal return due to your S corporation return not being processed yet. There is no tax withholding associated with it which is what the IRS would mainly be concerned with. Also, W-2 forms don't have to be submitted by employers until the last day of January, but personal tax returns have traditionally been accepted and processed before then.

[jtax]

I agree. Don't worry about when (of if) they get to the 1120s. File your 1040 whenever you are ready.

It usually takes the IRS a long time to run the matching on such returns. Could be a year or two.

Also note there is no need to get a return receipt. If you send certified and get the green receipt stamped by a postal employee that is proof of filing. If the IRS doesn't get it or loses it that is there problem. The burden of proof shifts to them to prove you didn't send in the right thing. So basically they have to produce the envelope and they can never do that.

Always, always have a copy of exactly that you sent and the receipt. If the IRS surfaces at some point, you can just send them a copy and you will be fine.

[Edit: I'll also add that the IRS is so far behind processing paper returns that it could actually be a year or two before they get to it.]

[jlondon11]

Related to question above.  I noticed an error in my paperwork separating UBIA between two businesses operated in the same Sub S corporation.  So the K-1 info in the original submission is not 100% accurate.  However, since I still have not gotten confirmation my first return was received, will filing an electronic 1120S amended return confuse things further.  I think I should include the corrected K-1 information in my 1040 before filing.  I did apply for an extension for the personal taxes.

[jtax]

First thing to understand is that there appears to be no obligation to file an amended return. Certainly not if there was an unintentional mistake. See, e.g. https://www.keimtaxlaw.com/do-you-have-a-legal-obligation-to-file-an-amended-income-tax-return

It is isn't a big difference you could just leave it alone. If the change would result in more tax owed and it's not trivial then you should consider filing an amended return to reduce the risk that the IRS will catch you and you'll pay interest and maybe penalties.  However you do not have to. So if the different doesn't result in more tax owed and it is in an area the IRS is unlikely to notice you might not bother. The IRS is most likely to notice income that appears in an information return (1099, K-1, etc.) that is omitted from the recipitant's return.

Note this is different from playing the "audit lottery." That means taking a position on a return that does not have a good enough legal reason and hoping the IRS won't catch you. That is not permitted.

[jlondon11]

Thank you.  If amendment is not filed, should correction be made on personal return to reflect corrected K-1?  It does not affect tax obligation.

[jtax]

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@jlondon11 wrote:

Thank you.  If amendment is not filed, should correction be made on personal return to reflect corrected K-1?  It does not affect tax obligation.

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There is no corrected k-1 if you don't file an amended 1120S. 

If there is no change in tax due and you don't amend the 1120S, on the personal 1040 I would use the k-1 as filed with the 1120S an not the "correct" unfiled k-1.  If you use the "correct" #'s the IRS matching program might flag the discrepancy.