I've been through this exact conversion process twice in the past year, and the key thing that trips people up is the timing between state and federal filings. One critical detail that hasn't been mentioned yet - make sure you check your state's specific requirements for LLP to corporation conversions. Some states require publication notices or have waiting periods that can delay the process significantly. In my experience, California required a 30-day waiting period after filing Articles of Conversion before the corporation was officially recognized. Also, regarding the Form 2553 deadline - remember that you have 75 days from the date of incorporation (not conversion) to file for S-Corp status. If you miss this window, you'll have to wait until the following tax year or request a late election relief, which is a whole other headache. One more tip: keep detailed records of all the conversion steps and dates. The IRS may ask for documentation showing the exact sequence of events, especially if there are any timing questions later. I always create a conversion timeline for my files that includes state filing dates, acceptance confirmations, and federal form submissions.

This thread has been incredibly helpful - I'm dealing with a similar conversion right now and was making some of the same mistakes mentioned here. One thing I'd add based on my recent experience: double-check that your LLP's operating agreement doesn't have any provisions that could conflict with S-Corp requirements. I almost got tripped up because our client's LLP agreement had language about different profit-sharing ratios for partners, which obviously doesn't work with S-Corp's one-class-of-stock requirement. We had to amend the operating agreement as part of the state conversion process to ensure everything would be compatible with S-Corp status. The state filing office actually flagged this during their review, which saved us from a potential rejection down the line. Also, for anyone worried about the timeline - start the process early! Even though the actual filings might not take that long, coordinating with your client to gather all the necessary documents, getting board resolutions, updating agreements, etc. can eat up a lot more time than you'd expect.

Reading through all these experiences, I'm starting to think there should be a government guide for this stuff! The fact that so many people have gone through the exact same frustrating process shows this is a real systemic issue. One thing I wanted to add - if you're in a rural area, don't overlook local community banks. I had a Green Dot refund check for $4,700 last year and struck out at Chase and Wells Fargo in the city. Drove 30 minutes to a tiny local bank where my grandmother used to have an account, and they took it without hesitation after I explained the situation. Sometimes smaller institutions are just more willing to actually listen and help. Also, keep track of which places refuse you and why - if you end up filing a complaint with banking regulators later, having documentation of unreasonable refusals can be helpful. The verification letter strategy everyone's mentioning is definitely the way to go, but also consider asking Green Dot for a phone number where banks can call to verify the check in real-time. Some institutions prefer that over written documentation. Hang in there - it's your money and you shouldn't have to pay highway robbery fees to access it! The preparation strategies outlined here will definitely get you sorted. 💪

I completely feel your pain with this situation! I went through the exact same thing with a $5,800 Green Dot refund check just two months ago. After reading through all the excellent advice here, I can confirm that the preparation approach really works. What finally got me sorted was going to a **regional bank** (PNC in my case) with the full documentation package: Green Dot verification letter, my tax return, the IRS "Where's My Refund" screenshot, and two forms of ID. The branch manager was initially hesitant but after reviewing everything, they processed it with a 5-day hold and only a $10 fee. One thing I'd add that hasn't been mentioned - **AAA offices** (if you're a member) sometimes offer check cashing services and they were surprisingly knowledgeable about tax refund checks. Worth calling to ask! Also, don't get discouraged if the first few places say no. I was rejected at 4 different locations before finding success. The key is having all that documentation ready and being able to clearly explain that Green Dot is just the payment processor, not some sketchy operation. Your business needs that cash flow, and with the strategies outlined in this thread, you'll definitely get it sorted without paying those ridiculous check-cashing fees. Good luck! 🙏

Just a quick warning - be careful with daycares that shut down suddenly like this. We had a similar situation and it turned out the owner was being investigated for tax fraud. Make sure you keep ALL your receipts and documentation showing you paid them. If they weren't reporting income or paying taxes, there's a small chance this could come back to haunt you if there's ever an investigation.

I'm dealing with a very similar situation right now! My son's daycare also disappeared suddenly in the middle of the year, and I was panicking about Form 2441. After reading through all these comments, I feel much more confident about how to handle it. A few things I learned from my research that might help others: 1. The IRS Publication 503 specifically mentions situations where providers refuse to give tax information or can't be contacted. You're not penalized for their non-compliance. 2. I found that some states maintain databases of licensed childcare providers that include tax ID information. It's worth checking your state's Department of Human Services or similar agency website. 3. If you paid by check or credit card, those records can serve as additional documentation of legitimate childcare expenses, especially if the provider's bank information is visible. The most important thing I learned is that the IRS cares more about whether you actually had legitimate childcare expenses than tracking down every provider's tax information. As long as you document your reasonable efforts to obtain the information and report what you have, you should be fine. Thanks to everyone who shared their experiences - it really helped reduce my stress about this whole situation!

Has anyone had experience with the IRS actually catching and auditing someone over 1098-T scholarship overages? I'm in the same boat with my son having about $14k in excess scholarship and I haven't been reporting it for two years now...starting to get nervous after reading this thread!

Your tax preparer's casual approach is really concerning. The IRS has specific rules about scholarship income, and Publication 970 clearly states that scholarship amounts exceeding qualified education expenses are taxable to the student. Even though your daughter is your dependent, she still needs to file her own return if she has taxable income above the filing threshold. The $16,000 difference you mentioned would likely put her over the standard deduction limit, meaning she'd need to file and pay taxes on that excess amount. The college reports this information to the IRS via Form 1098-T, so they have the data to potentially flag discrepancies. I'd strongly recommend getting a second opinion from a CPA who specializes in education tax issues. While many people might not get caught, intentionally ignoring reportable income isn't worth the risk of penalties, interest, and potential audit issues down the road. Better to handle it correctly from the start.

Thank you everyone for all this helpful information! I'm the original poster and I just wanted to update that I successfully completed my Schedule 1 using the advice here. You were all absolutely right - Line 16 is just the simple sum of lines 1-15 in the far right column. I ended up with $13,360 total ($8,700 business income + $410 capital gain + $4,250 unemployment) and made sure to transfer that exact amount to Line 8 on my Form 1040. I double-checked my math three times after reading about the software errors some of you experienced! One thing I learned from this thread is that I should probably consider getting help with next year's taxes since my side business is growing. The tips about taxr.ai and Claimyr are bookmarked for future reference. Really appreciate this community - you saved me from potentially making costly mistakes!

As someone who's been dealing with tax preparation for years, I want to emphasize something crucial that came up in this thread - the importance of keeping detailed records throughout the year. I see you mentioned business income of $8,700 from your side gig, and that's exactly the kind of income that can get complicated quickly. For next year, consider setting up a simple spreadsheet or using accounting software to track your business income and expenses monthly. This will make Schedule 1 much easier and could potentially save you money through deductions you might be missing. Business expenses like equipment, software, home office deductions, and even mileage can significantly reduce that $8,700 taxable income. Also, since you mentioned not trusting tax software after it messed up your state taxes, you might want to look into having a tax professional review your return before filing - especially with business income involved. The peace of mind is often worth the cost, and they can catch things that might save you more than their fee.