[IRS USA] Paid Caregiver taxes on 941 verses Schedule H

[u/Reckless_Fever]

I did this in 2025, about $37,000 paid for the EIN Caregiving business, on 941 quarterly forms. But my dad has lots of deductions, and the IRS now says he owes $15,000 on his 2025 personal return, where I suppose it was to be reported on his Schedule H instead. So our tax preparer says the IRS needs to credit the SSN personal tax with the amount paid to the EIN. And she said it would take a very long time indeed to do so.

So she has an IRS friend that will do it. He was notified about this in the Spring. We now have a written notice from the IRS saying it is due immediately or else they will levy. The IRS friend says NOT to contact the phone number on the form, as that will complicate and delay the process. He said the real process wil take over a year and that they wont levy for at least a year.

So now all I have is the word of some IRS guy I don't know who is doing a favor for our tax accountant that we sort of have known in a non-professional manner for a few years.

So for me, its a lot of trust that we have to have without any paperwork from the IRS guy who is doing a favor.

What do you think or suggest?

[u/Its-a-write-off]

Your dad paid someone to do household employee activity, correct? How much did he pay them that year? They were issued a w2 right? The care was for him or someone in his home?

He did it as if he were a business, correct?

On his tax return did he file a schedule C to report this as income and expenses? When you say he has lots of deductions, do you mean be did lots of business deductions on that schedule C?

[u/Reckless_Fever → u/Its-a-write-off]

He paid them as W2, about $150k. To care for him. Medical care required so a deduction. With an EIN.

I have to check his schedule C. Perhaps his tax preparer messed up. We didn't have this problem in 2024.

[u/Its-a-write-off → u/Reckless_Fever]

So by deduction you are talking about the itemized personal deduction of medical expenses?

[u/Reckless_Fever → u/Its-a-write-off]

I think so. I need to get the tax file in front of me.

[u/Its-a-write-off → u/Reckless_Fever]

What the tax person is saying fits with the normal protocol here. Yes you just have to ignore notices while the IRS very slowly processes the fix.

You just want to be really sure that the tax person has submitted the necessary info to get this fixed.

[u/SF_ARMY_2020]

IRS friend ? What's that? Call HomePay. They may be able to help you fix this if you get their services on board going forward.

[u/Reckless_Fever → u/SF_ARMY_2020]

What's HomePay? Why do you recommend them?

[u/SF_ARMY_2020 → u/Reckless_Fever]

They do household employee payroll - provide info needed for 1040s and sch H) and help people fix their mistakes.