First, go over this checklist.
Did you file 2553 in the year 2005 or earlier? If you filed it, did you receive an approval from the IRS?
If you answered yes to both questions above, then you should have filed S Corp return instead of C Corp return.
Now, you can take these steps to correct all the errors
1) File amended Corp C return to zero our the effects of Income and Expenses.
2) File amended S Corp return explaining the reason for the amended return.
3) File your amended personal income tax return to disclose the S Corp income (loss).

I cannot tell who actually made the mistake of filing the Corp C return instead of S Corp return. Unfortunately, regardless of whose fault it is, you are at loss. If you had taxable income from your business then you are required to pay taxes and also pay the interest and penalties on the unpaid amount of taxes. The longer you wait to correct, the more you will end up paying.

I would advice that you seek some one elses help if that CPA is not willing to co-operate. You can also reach me at 919-559-2227 or asm361@yahoo.com and I will be glad to help you take care of all the issues.

Good luck and thank you for posting on my blog.

Nicole, you have two different scenerios.
One you have to claim the earnings and the expenses related to you message therapist business on Sch C as a Sole Proprietor, assuming that you have not incorporated the business. You can claim all expenses related to generating the income.

Second, you can claim the upto $4,000 if married filing joint or $2,000 if single for the tuition fees paid for your qualified education. Since, it is just the beginning of the year, you should expect to receive a 1098 form from your university. You can always request the university to provide you a copy of the 1098, in case you do not receive one in the mail. You would also need to wait until Feb 13th to file your return as the form to claim the education credits will not be approved by the IRS before Feb 13th, 2008.

Good luck and thank you for posting on my blog.