Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

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

Show More
Show Less
Ask Your Own Tax Question
Answered in 4 minutes by:
3/13/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,275
Experience: Adjunct Professor
Verified

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
Satisfied Customers: 1,275
Experience: Adjunct Professor
Verified
Carter McBride and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 4 months 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.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Carter McBride Your Own Question
Carter McBride
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,275
1,275 Satisfied Customers
Experience: Adjunct Professor

Carter McBride is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I am a Business owner and I went to school in 2017 which
I am a Business owner and I went to school in 2017 which incurred $43,000. Can I deduct this as a Business expense or Employee benefit? This education is essential for me to run and grow my company.… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,127 satisfied customers
Lane - I have a client who is an S Corp and is located in
Hi Lane - I have a client who is an S Corp and is located in NYC. They buy damaged equipment refurbish it and sell it online. The NYC 3L specifies that any gross receipts earned in NYC are subject to … read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
I just started an LLC in November. Right now I am the only
Hi, I just started an LLC in November. Right now I am the only employee and it is my full time job to run this new LLC. I would like to start paying myself in 2018. I spoke with a payroll company and … read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
Do i need to fill anything out on an inactive (soon to be
do i need to fill anything out on an inactive (soon to be dissolved) s corp tax return specifically 1120S… read more
Rick Martin
Rick Martin
MBA
92 satisfied customers
Foreign oorp Sold apt in 2013 $18 million and dissolved NYS
Foreign oorp Sold apt in 2013 $18 million and dissolved NYS corp after sale in 2014. Paid all related taxes for form1120F, NYS Form CT3, and NYC Form 3L in 2013 as final tax returns. Question : NYC se… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,127 satisfied customers
I have a sole proprietor LLC in New York City. I have since
I have a sole proprietor LLC in New York City. I have since moved to IL and am an employee with another company. I barely did anything with the LLC this last year, but I also didn't dissolve it. Since… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
We're dissolving an S Corporation. We had no activity in 2013 and filed with PA to d
We're dissolving an S Corporation. We had no activity in 2013 and filed with PA to dissolve the corporation in February with Legal Zoom. Do I need to file form 966 with the IRS? Also, do I need to fil… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
Client filed personal bankruptcy because his corporation (S-Corp)
Client filed personal bankruptcy because his corporation (S-Corp) over 300K. The company was 20 yr old company and took 600K loan from the bank (the owner was guarantor for the loan) and after paying … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I am thinking about renting out a room in my home while I am
I am thinking about renting out a room in my home while I am unemployed to help with expenses. How would this affect my taxes?… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
if a utility company located outside nyc sells electric /gas
if a utility company located outside nyc sells electric /gas to customers in nyc as a supplier The company has no nexus to nyc are they required to file a nyc corp tax return they file the Gross Recei… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,444 satisfied customers
I am a consultant self employed. In 2013, Ive attended training
I am a consultant self employed. In 2013, I've attended training that is central to our consulting services. This training totaled 8 required courses; and, those courses were held in several cities in… read more
Tax.appeal.168
Tax.appeal.168
Principal
13 satisfied customers
I am looking to start an LLC. I will be the owner and the only
I am looking to start an LLC. I will be the owner and the only employee. How do I pay myself? What taxes are the business responsible for and what taxes am I responsible for?… read more
Phillip B, EA
Phillip B, EA
Tax Advisor
Bachelor\u0027s Degree
570 satisfied customers
Business Tax Question - Currently have an Illinois LLC US Business
Business Tax Question - Currently have an Illinois LLC US Business opened in Apr 2012 and its not been trading since October and now that I am readying the taxes for IRS, I realize I should dissolve i… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
What is the best way to report someone who is self employed
What is the best way to report someone who is self employed and does not pay the appropriate amount of federal income tax?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Filing Seperate married vs Joint.... I am in the middle of
Filing Seperate married vs Joint.... I am in the middle of a divorce and I want to file seperate married. I get that everyone is saying we would get more if we did it jointly, but honestly how much of… read more
MequonCPA
MequonCPA
CPA Firm Owner
Master\u0027s Degree
2,290 satisfied customers
I have a CA based LLC that has never really done any business.
I have a CA based LLC that has never really done any business. On my last tax return I filed as having earned zero income on the LLC... essentially it just sat there, and I did nothing with it. I have… read more
legaleagle
legaleagle
Attorney
Doctoral Degree
7,047 satisfied customers
I have two separate employers, both companies essentially ...
I have two separate employers, both companies essentially owned by the same person. For one company I do a lot of work for companies owned by relatives of the owner. I have recently started a consulti… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,127 satisfied customers
Dear Sirs,I was sub-contracted by a contractor, now he is
Dear Sirs, I was sub-contracted by a contractor, now he is asking for my SSN and my address to be able to send me the tax form. Is it safe to give him my SSN number? Thank you for your anser, Daniela… read more
Christopher Phelps
Christopher Phelps
Sole Practitioner
Master Degree
1,180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x