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I have dug a little further and now think the sales tax exemption form was for the tax on the chemical supplies which the subcontractor purchased and not on the service provided. My initial read is that ...

When you set up each employee, you have the option to set up what taxes each is subject too. Make sure to check the correct boxes for each employee. I want to think all of this is under the taxes section ...

If you do file an amended return, and they otherwise would've qualified for EIC, you cant claim EIC now on the amended return. Mark S Nelson Jr, EA Admitted to Practice before the Internal Revenue ...