Found Mistake on 2013 1120S Form
"I don't know if it's common or necessary to include capital stock as a liability? Yes, if you look at the title of the nonasset part of the balance sheet it actually is titled ""Liabilities and Shareholders' Equity"".  Your capital stock is a component of Equity.  This sounds like it was reported in a reasonable manner. ""$2,582 listed under Loans from Shareholders (Line 19)."" Did you have a basis issue with your distributions?  That is did you take shareholder distributions more than your adjusted basis that you have been taxed on?  I have seen the practice of considering distributions in excess of basis as short term loans to prevent the additional taxation of the excess distribution. Be careful when you adjust this entry, your balance sheet had to roll from one year to the next.  You must have a reasonable transaction to substantiate the removal of the shareholder loan."
"I doubt there is anything you can do to convince them you paid, outside of just talking to them, which it seems you already tried. These are the possibilities I can think of for how this happened: IMHO, the most likely scenario is #4. If 1 or 3 happened you'll never see your money again, but the other 3 possibilities leave open the option of the error being discovered in the future. My suggestion, if the copay is small, is to pay it again, ask for a receipt, and ask them to make a note in the system that you claim you already paid, and ask them to ""be on the look-out"" for any discrepancies in that amount. This way, (with a good amount of luck), if they find it or discover the error (from another customer asking about the credit, or an accounting cash surplus), they can refund it to you." "What you should do is called ""re-characterization"". See the instructions for form 8606 for details (that is also the form to use to report the incident). See example 3: You made a contribution to a Roth IRA and later recharacterized part   or all of it to a traditional IRA. Report the nondeductible   traditional IRA portion, if any, on Form 8606, Part I. If you did not   recharacterize the entire contribution, do not report the remaining   Roth IRA portion of the contribution on Form 8606. Attach a statement   to your return explaining the recharacterization. If the   recharacterization occurred in 2012, include the amount transferred   from the Roth IRA on Form 1040, line 15a; Form 1040A, line 11a; or   Form 1040NR, line 16a. If the recharacterization occurred in 2013,   report the amount transferred only in the attached statement, and not   on your 2012 or 2013 tax return. You re-characterize it back to traditional IRA contribution, which will not be deductible. You then convert it back to a Roth IRA. Basically you end up at exactly the same place, except that if you already had some gains on that amount - you'll have to pay tax on them now (for the conversion, since because of the re-characterization, it will now be gains in a traditional IRA). You should of course contact your broker to do the re characterization (reassigning of the amount and its gains from a Roth IRA account to a traditional IRA account)." I've talked to several very experienced accountants that deal with startup shares, stock 83(b)'s, etc. weekly (based in SF, CA) as this issue would have had a massive impact on me.  The most important part of filing an 83(b) is notifying the IRS within 30 days. The law requires the written notification within the 30 day window. Adding it to that years tax return is an IRS procedure. Forgetting to include a copy of that years tax return is apparently a common occurrence when no tax was owed (0 spread, you actually paid the FMV). And the accepted method to resolve this is to simply file a blank amendment for that years return and include the copy of the 83(b) election. You need to give specific dates! In the United States, you have three years to file an amended tax return. https://www.irs.gov/uac/Newsroom/Ten-Facts-about-Amended-Tax-Returns Did the restaurant fail in 2012? If so, that's probably the year to take the loss. If you need to amend your 2012 return, which you filed in 2013, you should have until 2016 to file this. The exact date may be based on when you filed 2012 taxes! I just want to point out something that seems to be generally true: If you are supposed to report something to the IRS, and you don't, the IRS will probably send you a letter assuming the maximum possible tax liability, and it's up to you to prove that scenario is incorrect. In your case you obviously owe no tax, but since you didn't report it, the IRS simply assumed that you do owe tax until you prove otherwise. You're one form away from fixing the issue. I have first hand experience that this is also true if you forget to report an HSA distribution. I received a letter considering my entire distribution as if it was for non eligible medical expenses. This made the amount taxable and had an additional 20% penalty to boot. Of course I have medical receipts for all of the distributions which makes them not taxable, and had I simply put the correct number on my return to begin with I wouldn't have had to fill out the additional form to correct my mistake. If the correction results in you owing them money, you typically just need to pay them the appropriate amount. I believe they charge back-dated interest on the amount if it was supposed to have been paid in the past, but if it's for this year's taxes then payment isn't due until the end of April and so interest would not apply. In some circumstances, they may apply fines or press charges for tax evasion, but only if they have reason to believe you intentionally/knowingly attempted to misrepresent your tax return in order to avoid paying taxes. You can challenge their decision to fine you, but you are considered guilty until proven innocent. Obviously that's the opposite for any criminal charges. The good news is, lots of people accidentally enter the wrong numbers and the CRA is aware of this and rarely takes action against them, other than making them pay what they owe. They have ways to look for suspicious behavior and differentiate that from innocent mistakes. So don't worry, you should be fine, not fined. "This is an unfortunate situation for you.  You have zero chance at your question number 1, if someone was going to bend this rule for you it would have happened already.  The answer to question number 2 is pursue solution number 3. The overriding issue is that the IRS makes these rules, not the employer/plan sponsor or the administrator.  You can't talk the plan administrator in to reimbursing you, their system likely doesn't even have a function to do so. FSA timing issues can be complex and I think that's the root of your issue because when an expense can be incurred (date of service versus date of payment) and when a claim must be filed are different things. It's really common to bend the rules on when a claim is submitted, but not when it was incurred.   It's really common for an exiting employee to have 30 days to submit expenses for reimbursement.  FSA expenses must always be incurred within the specified plan year, or within your dates of employment if you weren't employed for the entire plan year, this is specified by the IRS.  It seems like some wires were crossed when you asked this question.  You were asking ""can I still incur claims"" and they were hearing ""how long do I have to submit an expense that has already been incurred."" Some plans allow COBRA continuation on FSA which generally does not make sense.  Your contributions to the plan would use after tax dollars but for folks who know they have an eligible expense coming it can make sense to continue via COBRA in retain your eligibility under the plan so you can incur a claim after your employment termination. Regarding number 3.  This sort of reimbursement would be outside the plan, no precedent is necessary.  You've gotten them to claim it was their mistake, they're going to reimburse you for their mistake, it has nothing to do with the FSA. Good luck." "Turbotax community had a similar question. They claim you just put it into ""Office Expense"".  I never understood why there are so many categories when they are just summed up and subtracted from your income. How can you possibly get in trouble for putting something in a wrong column if the final tax liability doesn't change." Underwriting manager here. It's not a big deal. Call your processor or loan officer tomorrow to make sure it's been cleared. My guess is that the underwriter or loan officer noted the discrepancy and corrected it in their systems. You'll have to sign a updated 1003 and 4506T at closing with correct info.  In other words...no biggie, no worries. Not a show stopper at all. "Buried on the IRS web site is the ""Fillable Forms Error Search Tool"". Rather than including an explanation of errors in the rejection email itself, you're expected to copy and paste the error email into this form, which gives more details about what's wrong. (Don't blame me; I didn't design it.) If I copy your error message in, here's the response I get: There is an error with the “primary taxpayer’s Date of Birth” in Step 2 Section 4.  The date of birth that was entered does not match IRS records. Make sure you enter the correct birth date, in the correct format, in the correct space. Scroll down, and enter the current date (“Today’s date”).  Today’s date is the day you intend to e-file the return again. Also, if you are making an electronic payment you must re-date that section. E-File your return. You say that you've already checked your birthday, so I don't know as this is particularly helpful. If you're confident that it's correct and in the right place, I think your next step needs to be contacting the IRS directly. They have a link at the bottom of the error lookup response on how to contact them specifically about their solution not working, or you could try contacting your local IRS office or giving them a call." "The FTB, as any government agency, is understaffed and underpaid. Even if someone took a glance and it wasn't just an automated letter - consider the situation: you filed as a LLC and then amended to file as a partnership. Unless someone really pays attention - the obvious assumption would be that you had a limited partnership. Yes, you'll need to call them and work with them on fixing this. They do have all the statements you've attached. However, there's a lot of automation and very little attention to details when it comes to matching errors, so don't get surprised if no-one even looked at these statements. Next time your elected government officials talk about ""small government"" and ""cutting government expenses"" - you can remind yourself how it looks in action with this experience." "If she reported the income on the business return, I'd treat this as a ""mail audit"". Try to get a clear statement from Square confirming what they reported, under which SSN/EIN, for what transactions. Make a copy of that. If at all possible, get them to send a letter to the IRS (copy to you) acknowledging that they reported it under the wrong number. Copy the IRS's letter. Square's letter, and both personal and business 2012 returns. Write a (signed) cover letter explaining what had happened and pointing out the specific line in the business return which corresponded to the disputed amount, so they can see that you did report it properly and did pay taxes on it as business income. End that letter with a request for advice on how to straighten this out.  Certified-mail the whole package back to the IRS at whatever address the advisory letter gives. At worst, I'm guessing, they'll tell you to refile both returns for 2012 with that income moved over from the business return to the personal return, which will make everything match their records. But with all of this documentation in one place, they may be able to simply accept that Square misreported it and correct their files. Good luck. The IRS really isn't as unreasonable as people claim; if you can clearly document that you were trying to do the right thing, they try not to penalize folks unnecessarily." An amended return is required for situations that impact tax owed, or your tax refund. 8606 purpose is to track non-deducted IRA deposits. I'd recommend you gather all your returns to form a paper trail, and when filing your 2016 return, show a proper 8606 as if you'd tracked it all along. I would behave exactly as I would expect it from others. If you were the one giving away too many points by accident you would be thankful if somebody notifies you about this error. You can write a letter or call them. I would not use the points (of course only not use the points which are added in error). Other options are possible but I would advise against them. It's just about fair play and the points are clearly not yours. Yes, you can send in a 2012 1040-ES form with a check to cover your tax liability. However, you will likely have to pay penalties for not paying tax in timely fashion as well as interest on the late payment. You can have the IRS figure the penalty and bill you for it, or you can complete Form 2210 (on which these  matters are figured out) yourself and file it with your Form 1040. The long version of Form 2210 often results in the smallest extra amount due but is considerably more time-consuming to complete correctly. Alternatively, if you or your wife have one or more paychecks coming before the end of 2012, it might be possible to file a new W-4 form with the HR Department with a request to withhold additional amounts as Federal income tax. I say might because if the last paycheck of the year will be issued in just a few days' time, it might already have been sent for processing, and HR might tell you it is too late. But, depending on the take-home pay, it might be possible to have the entire $2000 withheld as additional income tax instead of sending in a 1040-ES. The advantage of doing it through withholding is that you are allowed to treat the entire withholding for 2012 as satisfying the timely filing requirements. So, no penalty for late payment even though you had a much bigger chunk withheld in December, and no interest due either.  If you do use this approach, remember that Form W-4 applies until it is replaced with another, and so  HR will continue to withhold the extra amount on your January paychecks as well.  So, file a new W-4 in January to get back to normal withholding. (Fix the extra exemption too so the problem does not recur in 2013).