- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
So there is good news and bad news:
- The good news is that the return properly shows that you should get a refund.
- The bad news, is that these estimated tax payments should have been made under your SS#
- So what this means is that you are underpaid for estimated taxes at the individual level and will have a tax liability on your 1040 that needs to be paid.
- You will get most of this back when you receive the 1120S refund, however, you will most likely get a penalty for underpayment of estimated taxes at the personal level.
- As was noted by @Anonymous , S corporations rarely need to pay any tax since all the income or loss flows through to the individual and the tax is then paid at that level.
- When you do get a letter for underpayment of estimated tax, I would write a letter explaining the confusion on your level, include documentation that the estimates were paid at the S level by mistake. While the IRS may waive the penalty, keep in mind that it will take months and months and months to hear back. With all offices closed mail is piling up and it will take a long time to get through the backlog.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
Also keep in mind the date of replies, as tax law changes.
‎April 14, 2020
6:19 PM