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.
