Hello!
I work as a contractor and currently live outside of the US. Before I left, I set up an S-corp and my invoices have been going to a bank account owned by the business. I didn't make any quarterly withholdings, and only now discovered that the paperwork for the S designation was never sent to the IRS.
What should I do now? I know I can file for a late designation, but I also need to account for the missed quarterly withholdings. Any advice will be appreciated, thank you!
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Exactly what did you not pay?
Quarterly estimated taxes? Quarterly payments with 941s?
You can (and should) file as soon as practicable but there are certainly penalties involved. You might want to consult with a local tax professional before proceeding.
Either, although my understanding is that I don't need to pay quarterly estimated taxes for the corporation because it's not going to have any taxable profit at years end. It looks like I needed to pay employee tax withholdings with form 941.
If I file now (which I'd like to do), should I put all the withholdings on a single quarter, or start with the quarter I paid myself?
@dabellator Probably would be best if you filed as you would have had you filed in a timely manner.
I realize the corporation does not have to pay quarterly estimated tax, but was unsure if you were referring to your own personal estimated tax payments or the corporation's withholding tax obligations (e.g., 941).
While you may be able to handle this yourself, I would concur with @tagteam in spending some $$ to visit with a tax professional and get you on the right track. Especially the first year.
Here is the revenue procedure for handling late elections. Rev Proc 2013-30.
https://www.irs.gov/pub/irs-drop/rp-13-30.pdf
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