Tried to efile my 1120S and found out I set up my business wrong with the IRS - not sure what to do!
by rct, Window Shopper
- Created: February 14, 2014, 10:19 pm
- Updated: February 14, 2014, 10:28 pm
Hi everyone, I started an ecommerce business primarily selling on the amazon marketplace. I filed for articles of incorporation for my business on 11/15/2012 did not obtain an EIN number until january 2013 - when setting up my EIN over the phone with the IRS I apparently set it up as a C-corp (I thought it was S-Corp). I set up my fiscal year as july 1-june 30 (not sure why) I was given my EIN and told I would have to file an 1120 by September 15th 2013. I forgot this and thought my fiscal year was a calendar year. So I just went to efile my 1120S and of course it rejected and I found out all this information when I called the IRS. So now I assume I'll be penalized for a late 1120 filing and that I'm stuck as a C-Corp. To make matters slightly worse I paid myself a salary of 400 a month starting from August and submitted my W3 based on the calendar year. I ended the 2013 calendar year with 3000 in taxable income. I'm at a loss at what to do - I just found this out today. I'm ok with being a C-Corp I am just worried about what kind of penalties I'll be facing and this is holding up my personal taxes as I thought I would be receiving a k-1, I want to be 100% on the business side of things before I file my federal. Has anyone been late on their first 1120 filing? What kind of penalties could I be facing? Would the IRS ever be lenient on a dumb 24 year old starting his first business? :p Thanks for any help you can offer!
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