Did not file quarterlies, need advice

2 Replies

I believe I receive some bad advice from a small business owner I am acquainted with. I applied for my LLC to be taxed as an S corp for 2017, but I didn't not pay myself until December. I did not file any quarterlies (as I was told I did not need to) and I am finding this was all wrong. I reported my salary of 30k through the SSA.gov website and generated a W2 for myself. What is the best advice going forward and finishing my 1040 for the year? Can I just submit a 4th quarter 941 showing my salary and pay the necessary withholdings through the voucher? I understand there will be a penalty involved, but I don't know about the other quarters where I didn't make any money and did not pay myself at all. Did I just create a mess for myself? Any help is much appreciated. Thanks guys!

@Mike Nelson

To answer your question, we would need to know a lot more about your business. Probably should be discusses one on one rather than via this forum. Unfortunately, these days before the IRS deadline all good accountants are very busy. I recommend you file an extension and then connect with one of us, tax experts, to discuss.

It is possible that you did not need to report any salary and just need to reverse your W2 report. Or maybe you need to file quarterly IRS reports on Forms 941 and 940. I cannot tell without knowing more.

@Mike Nelson

S-Corp return was due 3/15 with the possibility for extension to 9/15.

What was the total income for the S-corp before paying yourself a wage. If the amount was in the positive - you should have looked to pay yourself a salary.
If you operated at a loss - you may have been able to possibly get away without paying yourself a wage.

If you only earned a wage in the 4th quarter - I think filing a 941 for the 4th quarter would suffice. 

If you completed your s-corp return - you should have received a K-1 from the S-corp which should go on your form 1040.

Basit Siddiqi, CPA
917-280-8544

Join the Largest Real Estate Investing Community

Basic membership is free, forever.