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I have a small S-corporation, employing only myself, and sub…

Hi, I have a...

Hi, I have a small S-corporation, employing only myself, and sub contracting 2 other people (1 of them being my husband). It is an Arts Education company, which mainly provides classes to preschools. I have never filed business taxes since its establishment in 2014, but have filed my personal income taxes every year, which I do jointly with my husband.
I need assistance with the following:First, with figuring out if it makes more sense to dissolve my current company and start doing business as just self-employed, as essentially this is what I have been doing.
Then, would that mean that I could file for the owed back taxes as self employed (and probably amend my personal income taxes in)?
What would be my best alternative to not be hit with all the possible late penalties of the taxes not yet filed? Thank you.

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

Nothing else I can think of other than specifying I do business in NYC

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3/13/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,038
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Hey! I'm Carter, I'm a CPA and can help you out.

You can keep filing as a n S Corporation unless doing the extra filing requirements is too hard, then you can dissolve and just file as a Schedule C.

If you dissolve, you still need to file the past due S Corp returns, which is another reason it would make sense not to dissolve since you need to file the 1120S's anyways.

To avoid penalties and interest, you would need reasonable cause. If they do impose the penalties, just send them a letter saying why you were late filing. You can also request first time abatement on the 2014 tax year as long as no penalties applied in 2011, 2012, and 2013.

Le me know if you need anything else. If not, please leave a rating. Thanks!

Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
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Customer reply replied 1 month ago
Thanks for you reply! A couple of more questions regarding the same subject:
*1) you mention that it might be fine for me to continue with the s-corp and not dissolve, "unless doing the extra filing requirements is too hard." What are you referring to, too hard as in too much work or too expensive?
2) Also,would it make more sense to try to FIRST meet the filing deadline for March, than to take care of the back taxes?
3) Finally, is there a service or tax person that you recommend who can help file for my coming due business taxes?

1. Too much work/too expensive. You have the 940/941s, 1120S, W2s you need to file. If you're having issues keeping up with the filing requirements, then it could be best to simplify it and only need to file Schedule C on Form 1040 going forward.

2. File an extension for March so you avoid penalties. Then get all the returns prepared at one time.

3. I do not have anyone I could recommend. With past due taxes, I would definitely recommend seeing a CPA because they'll help you get on track and stay on track plus can help with penalty abatement requests.

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