Been there! The lockout is super annoying but it's usually because the system is being extra sensitive. Make sure you're using the EXACT refund amount from line 35a of your 1040 (not what you think you'll get). Also try using a different browser or clearing your cache - sometimes that helps with the login issues.

Ugh this happened to me last month! So frustrating when you just want to check your status. One thing that helped me was making sure I was entering the refund amount EXACTLY as it appears on my return - down to the cent, no rounding. Also try logging in early morning like 6-7am when there's less traffic on their servers. The 24hr lockout sucks but it's better than having your account compromised 🤷‍♀️

I went through this exact same situation about 8 months ago with my multi-member LLC! The confusion and stress you're feeling is completely understandable - I also got wildly different advice from multiple IRS representatives, which made everything feel so much more overwhelming. Here's what I learned from successfully resolving this issue: **Form 8832 is absolutely the correct approach** - ignore the suggestions about getting a new EIN or sending more general letters. The IRS has established procedures specifically for entity classification corrections, and Form 8832 with late election relief is the proper channel. **Your timeline is completely reasonable** - 8 months is well within the correction window. I've seen cases where people successfully corrected this after 12-18+ months. The IRS is generally reasonable when the mistake was clearly unintentional. **My process that worked:** - Filed Form 8832 requesting partnership classification with retroactive effective date to LLC formation - Checked Box 6 for late election relief - Included a detailed but concise reasonable cause statement (about one page) explaining the EIN application confusion and our always-intended partnership treatment - Attached state LLC formation documents and operating agreement as supporting evidence - Ensured both LLC members signed the form - Sent via certified mail to the specific IRS service center address listed in Form 8832 instructions The IRS processed my correction in about 10 weeks and sent a confirmation letter clearly stating the new classification and effective date. Since you haven't filed any tax returns yet under either classification, you're actually in a much better position than people who have to deal with amending prior returns. The key is being clear and factual in your reasonable cause statement about the unintentional nature of the mistake. The IRS handles these corrections regularly and is reasonable when proper procedures are followed. Don't let this stress you out too much - you have a clear, established path forward with Form 8832!

I've been through this exact situation with my LLC! The stress and confusion from getting conflicting advice is absolutely maddening - I totally feel for you on this one. Here's what worked for me after going through the same nightmare: **Form 8832 is 100% your solution.** The agents who suggested getting a new EIN or just sending letters don't understand the proper procedures. Form 8832 with late election relief is specifically designed for correcting entity classification mistakes like yours. **Your 8-month timeline is perfectly fine.** I corrected mine after about 11 months and the IRS processed it without any issues. They're actually quite reasonable about these corrections when it's clear the mistake was unintentional during the EIN application process. **Here's exactly what I did:** - Filed Form 8832 requesting partnership classification - Requested retroactive effective date to match our LLC formation date - Checked Box 6 for late election relief - Wrote a one-page reasonable cause statement explaining the EIN application confusion and our always-intended partnership treatment - Included copies of our state LLC formation documents and operating agreement - Had both LLC members sign the form - Sent everything via certified mail to the specific service center address in the Form 8832 instructions (different from regular tax return addresses!) The whole thing took about 9 weeks to process and I got a clear confirmation letter from the IRS. Since you haven't filed any returns yet under either classification, you're actually in a much better position than people who have to amend prior filings. Don't stress too much about this - the IRS handles these corrections all the time when you follow the proper procedure. Form 8832 will get you sorted out!

Has anyone actually been audited for large Goodwill donations? I'm curious what that process looks like. I donated about $8,000 worth of stuff last year and got a letter asking for more information, but nothing since then.

Based on everyone's experiences here, it sounds like you're actually in a good position with the professional appraisals already done. The $27k amount isn't automatically a red flag if you have proper documentation - it really depends on your AGI and whether you can substantiate the values. Since you mentioned this is from clearing out your mother-in-law's house, make sure you can prove ownership transfer to you before donation. The IRS sometimes questions whether the person claiming the deduction actually owned the donated items. Keep any estate documents or transfer records that show the items became yours before you donated them. Also, consider spreading the donations across multiple tax years if possible. Even though there's no dollar limit, claiming a massive charitable deduction in one year can trigger additional scrutiny. If you have items you haven't donated yet, you might want to hold some for early next year to smooth out the deduction amounts. The fact that you're asking these questions and keeping receipts puts you ahead of most people. Just make sure all your documentation is organized and easily accessible in case the IRS has questions later.

Wait, I'm confused about something. If you contribute property with a $1,000 basis but $0 fair market value, and later the partnership liquidates and you get nothing back for your interest, do you get to claim a $1,000 loss at that point? Or did you essentially lose the ability to claim that loss by contributing it instead of selling/disposing of it personally?

Before you make any decisions about contributing the collectible to the partnership, I'd strongly recommend getting professional advice on this specific situation. Partnership basis rules are one of the more complex areas of tax law, and there are several strategies you might want to consider. One approach others have mentioned is claiming the loss personally before the contribution. Another option could be structuring the partnership agreement to handle the built-in loss allocation more favorably. You might even want to explore whether this qualifies as a theft loss under Section 165, which could give you different tax treatment than a regular capital loss. The key issue is that once you contribute property with built-in loss to a partnership, you're locked into the Section 704(c) allocation rules, which can be restrictive. But if you handle the loss before the contribution, you might have more flexibility and better timing for the tax benefit. I'd suggest consulting with a tax professional who specializes in partnership taxation before you finalize your contribution strategy. The $1,000 loss might be significant enough to warrant getting the planning right from the start.

According to Internal Revenue Manual 21.5.6.4.35.3, the TC 570 indicates a refund hold while TC 768 confirms EIC computation. Per IRS Publication 5344, the PATH Act requires additional verification for certain refundable credits. I understand your frustration with the wait time - many taxpayers are experiencing similar delays this filing season. The status change is encouraging and suggests your return has completed the mandatory review period. Continue monitoring your transcript for TC 971 or TC 846, which would indicate further action or refund issuance respectively.

I went through this exact scenario two months ago! Had TC 570 over TC 768, stuck in PATH for 32 days, then status changed to processing just like yours. Got my refund deposited exactly 9 days after the status change. The combination of codes you're seeing is actually pretty standard for EIC claims during PATH season. Since your status just changed yesterday, I'd expect to see movement within the next week or two. Keep checking your transcript daily - you'll likely see a TC 846 (refund issued) code appear soon with your deposit date. The waiting is brutal but you're definitely in the home stretch now!