Just to reinforce what others have said - Form 2553 is definitely a one-time filing! I made the same mistake in my first year as an S-Corp and called the IRS thinking I needed to refile it. The representative confirmed that once your election is accepted, it stays in effect unless you voluntarily revoke it or something happens that disqualifies your S-Corp status. What you DO need to file annually is Form 1120-S (your S-Corp tax return) and prepare Schedule K-1s. Also don't forget about the reasonable salary requirement - as an S-Corp owner who works in the business, you need to pay yourself W-2 wages before taking distributions. That's probably the most important ongoing compliance issue to stay on top of. The IRS website has a good checklist for S-Corp annual requirements if you want to bookmark it for future reference!

Great question! I went through this same confusion when I first elected S-Corp status. You only need to file Form 2553 once - it's not an annual requirement. Once the IRS accepts your election (which they clearly did since you received the acceptance letter), that status remains in effect until you either voluntarily revoke it or something disqualifies your corporation. What you WILL need to file annually is Form 1120-S, which is your S-Corporation tax return, along with Schedule K-1s for all shareholders (just yourself in your case). The deadline for Form 1120-S is typically March 15th, but you can request an extension if needed. Also, since you're a single-member S-Corp, make sure you're paying yourself reasonable compensation through payroll before taking any distributions. This is one of the key ongoing compliance requirements that the IRS watches closely. The salary should reflect what you'd pay someone else to do your job in your business. Keep that acceptance letter in your records - it's proof of your S-Corp election status!

Has anyone mentioned the "reasonable compensation" requirement for S-Corps? This is where most expats get tripped up. The IRS requires you to pay yourself a "reasonable salary" subject to FICA taxes before taking distributions. With FEIE, this gets messy because only the salary portion qualifies for FEIE (up to the limit), not the distributions. So you might save on self-employment tax but lose FEIE benefits on the distribution portion.

I went through almost the exact same situation last year - LLC with FEIE benefits, considering S-Corp election, and dealing with unresponsive tax professionals. Here's what I learned that might help: The electronic signature issue will likely save you, as others mentioned. The IRS is incredibly strict about wet signatures on Form 2553. But definitely call proactively rather than waiting - it shows good faith and creates a paper trail. Regarding the S-Corp vs FEIE analysis, here's the key issue most people miss: with S-Corp status, you're required to pay yourself "reasonable compensation" as an employee before taking distributions. Only that salary portion qualifies for FEIE, not the distributions. So if your business income is $100k and you set reasonable salary at $60k, only the $60k qualifies for FEIE. The remaining $40k in distributions doesn't qualify for FEIE but also isn't subject to SE tax. Compare this to LLC status where your entire $100k of business income qualifies for FEIE (up to the annual limit) but is subject to SE tax. The math really depends on your specific income levels and how much of your income falls under the FEIE limit. In many expat situations, especially with income under $120k, staying as an LLC with full FEIE benefits actually comes out ahead. Get a proper analysis done before making any decisions - this isn't something to guess on.

I went through the exact same thing with a Letter 12C for my 2020 taxes! It's definitely stressful when you're not sure what they want. From my experience, the key is to read the letter very carefully - they usually specify exactly which tax year and which forms they need. For most Letter 12C requests, you'll need: - The W2 you mentioned (make sure it's for 2020) - Any 1099 forms if you had other income - A copy of the letter itself - Sometimes proof of deductions if that's what they're questioning Don't panic about the timeline - even if you're past the 30 days, they usually accept late responses as long as you send everything they need. I was about 6 weeks late responding to mine and still got my refund processed. One tip: make copies of everything before you send it, and if you fax, keep the confirmation sheet. The IRS can be slow but they do process these eventually. My refund came about 2 months after I sent my response. You've got this! Just gather what they asked for and get it submitted.

I just went through this exact situation with a Letter 12C last year! The stress is real when you're not sure what they want and that 30-day deadline is looming. Here's what I learned from my experience: The Letter 12C usually means there's a mismatch between what you reported and what they have on file from your employers/financial institutions. For 2020 taxes, this was pretty common because of all the pandemic-related changes and delays in reporting. Besides your W2, check if the letter mentions any specific lines on your tax return they're questioning. Sometimes they want documentation for: - Unemployment compensation (if you received any in 2020) - Stimulus payments that might have been incorrectly reported - Any 1099 forms for side income or investment earnings The good news is that most Letter 12C issues get resolved pretty quickly once you submit the right documents. I was worried for nothing - turned out they just needed to verify my W2 matched what my employer reported, and I had my refund about 6 weeks later. Don't stress too much about being 2 weeks into the 30-day period. Focus on gathering the documents and getting them submitted. You've got this!

As someone who's been through IRS scrutiny before (unrelated to family transfers), I can confirm that normal family financial help is not something they typically flag. The IRS is more concerned with unreported business income and large unexplained deposits than they are with siblings helping each other out. Your transfers sound completely normal and well within the bounds of typical family assistance. The amounts you mentioned ($200-$1,200 occasionally) are nowhere near the gift tax reporting threshold of $18,000 per person per year. Even if they were larger, gifts between family members are generally not taxable to the recipient anyway. The key thing is keeping reasonable records showing these are personal transfers, not payments for services. Your Venmo descriptions like "rent help" and "happy bday" actually help demonstrate the personal nature of these transactions. If you're ever questioned (which is unlikely), having a clear explanation of what each transfer was for is all you'd need. Don't let workplace rumors keep you up at night - the IRS has much bigger fish to fry than people helping their siblings with bills!

I appreciate everyone sharing their experiences and expertise here! As someone who was initially panicking about this exact issue, reading through all these responses has been incredibly educational and reassuring. It sounds like the key takeaways are: 1) Normal family transfers under $18k per person per year don't require any reporting, 2) The IRS is focused on unreported business income rather than genuine family assistance, 3) Good record-keeping with clear descriptions helps if questions ever arise, and 4) The distinction between gifts and payment for services matters. For the original poster @GalaxyGazer - based on everything shared here, your transfers with your brother sound completely normal and nothing to worry about. The amounts you mentioned are well within typical family help ranges, and your Venmo descriptions actually support the personal nature of the transfers. Thanks to everyone who took the time to explain the rules and share their experiences. This thread is going to be my go-to reference if I ever start overthinking family money transfers again!

Just want to point out that if you're self-employed or have your own business, the rules are totally different! I'm a consultant and I CAN deduct parking when: - Meeting clients - Going to temporary work locations - Attending business meetings away from my home office - Going to professional conferences The key is that my home office is my principal place of business, so any travel from there for business purposes (including parking) is deductible. Make sure you keep really good records though - the IRS loves to challenge these deductions.

Great question! I've been dealing with similar parking costs and learned the hard way that regular commute parking isn't deductible. However, there are a few strategies that might help: 1. **Ask about pre-tax benefits**: As others mentioned, see if your employer can set up a qualified transportation benefit. This won't eliminate the cost but can save you 20-30% depending on your tax bracket. 2. **Track any business travel**: If you ever drive to meetings, client sites, or other work locations during your workday, keep detailed records. The mileage and parking for these trips could be deductible if your employer doesn't reimburse you. 3. **Consider alternative parking**: Look into monthly parking deals at lots further away, Park & Ride options, or carpooling arrangements that might reduce your costs. 4. **Document everything**: Even though regular commute parking isn't deductible, keep records in case your work situation changes (like if you start working from home and the office becomes a temporary location). The $3400+ annual cost is definitely painful, but unfortunately the IRS is pretty clear that getting to your regular workplace is a personal expense. Focus on the pre-tax benefit option - that's probably your best bet for legitimate tax savings!