This has been such a helpful thread! I was in a similar situation with my disregarded LLC and was getting conflicting advice from different sources. The key takeaway I'm getting is that the entity classification for tax purposes is what really matters here. Just to summarize what I've learned from everyone's responses: - If your LLC is truly disregarded (no tax elections), Section 280A becomes problematic because you're essentially renting to yourself - If you've elected S-corp or C-corp taxation, then you have a separate taxpayer entity that can legitimately rent your residence - Documentation is absolutely critical - fair market rates, legitimate business purposes, proper meeting records - The 14-day limit is per residence, not per entity One question I still have: if you're a single-member LLC that elected S-corp taxation, do you need to follow all the S-corp formalities (board meetings, corporate resolutions, etc.) to make the Augusta Rule work properly? Or is the tax election alone sufficient?

This discussion has been incredibly enlightening! I'm a tax professional who works with a lot of small business owners, and I see confusion about Section 280A constantly. Let me add a few practical points that might help clarify things further. First, regarding the Forbes article Mary mentioned - financial publications often oversimplify complex tax rules, which can be misleading. The reality is that Section 280A isn't automatically off-limits for LLCs, but the entity's tax classification is absolutely crucial. For those with single-member LLCs that haven't made any tax elections, you're correct that this creates a "renting to yourself" problem. However, there are legitimate business structures that can work. Beyond electing S-corp or C-corp taxation, some clients have success with partnership structures or bringing in additional members to create a true separate entity. One critical point I don't see mentioned yet: the IRS has been increasingly scrutinizing Augusta Rule claims in recent years. They're particularly focused on whether the rental rate is truly at fair market value and whether genuine business activities occurred. I've seen audits where the IRS challenged decorative "business meetings" that were clearly just family gatherings with a thin business purpose. My recommendation is always to be conservative with the rental rate, maintain meticulous documentation, and ensure any meetings have legitimate business outcomes that you can demonstrate. The tax savings aren't worth the audit risk if you can't substantiate everything properly.

I actually just went through this exact situation a few months ago! The anxiety was real, but it ended up being much more straightforward than I initially feared. Since you filed your 83(b) election within the 30-day window, you've already cleared the most critical hurdle. The IRS requirement to attach it to your tax return is more of an administrative step to ensure proper record-keeping on their end. Here's what worked for me: I prepared a simple, professional cover letter stating that I had timely filed my 83(b) election within 30 days of stock purchase but inadvertently omitted it from my e-filed return. I included my full name, SSN, tax year, and explicitly mentioned this was supplemental documentation for my already-processed return. I attached a clean copy of my original signed 83(b) election and mailed everything to the IRS processing center via certified mail with return receipt. The entire process took maybe 15 minutes to prepare, and having that certified mail receipt gave me tremendous peace of mind. No amended return necessary, and no complex procedures - just clear communication and proper documentation. Given that your shares are on a 4-year vesting schedule, getting this sorted now will definitely help you avoid any potential complications down the road. You're being proactive about it, which is exactly the right approach.

I went through this exact situation with my Series A startup last year and can definitely relate to the stress! The good news is that since you filed your 83(b) election within the 30-day window, you've already completed the most critical step. The IRS processing centers are actually pretty used to handling these supplemental 83(b) submissions. I sent mine about 6 weeks after e-filing my return, and it was processed without any issues. The key is being clear and direct in your cover letter. For your cover letter, include: your name, address, SSN, the tax year (2024 for your 2025 filing), and a simple statement like "I am submitting this 83(b) election as supplemental documentation to my e-filed tax return. The original election was properly filed within 30 days of stock purchase on [date]." Send it certified mail to the Fresno processing center since you're in California. I also kept a copy of everything including the certified mail receipt - documentation is your friend with the IRS. Given your 4-year vesting schedule, getting this sorted now will save you potential headaches later. The "phantom income" concern is real if you don't have the 83(b) election properly on file, but since you filed within the initial deadline, you should be protected. The supplemental submission just ensures everything is properly connected in their system.

I'm so sorry this happened to you - what an awful timing! Here's what you need to do RIGHT NOW: 1. **Call the IRS Collections hotline at 1-800-829-7650** (not the general number) - they handle levy releases specifically 2. **Request an immediate hardship release** - tell them you're facing eviction and need emergency access to funds for basic living expenses 3. **Fax or upload Form 911 (Request for Taxpayer Advocate Service)** if the collections agent can't help immediately For your immediate rent situation: - Contact your local 211 helpline for emergency rental assistance programs - Many churches and community organizations have emergency funds for situations exactly like this - Ask Navy Federal about a temporary overdraft or emergency loan while the levy is being resolved The good news is that if you can prove economic hardship (which eviction threat definitely qualifies), the IRS can release levies within 24-48 hours. Stay persistent and document everything. You've got this - this situation is fixable! Also, once this is resolved, definitely set up automatic payments or an installment agreement to prevent this from happening again.

Oh man, I feel for you! This exact scenario happened to my neighbor last year - Navy Federal froze her account right when she was trying to pay her mortgage. Here's what worked for her: **Immediate steps:** - Call Navy Federal back and ask to speak with their "IRS Levy Department" specifically (they have specialists who deal with this daily) - Request they fax you the levy documentation - you'll need this when talking to the IRS - Ask if they can process any pending transactions that were initiated before the levy hit **For the IRS side:** - When you call the Collections line, use these magic words: "I need an immediate economic hardship release due to imminent eviction" - this triggers a different process - Have your lease agreement and any eviction notices ready to fax immediately - Ask about "Currently Not Collectible" status if you're genuinely struggling financially **Emergency rent help:** - Contact your county's social services office - many have same-day emergency rental assistance - Local Salvation Army often has emergency funds available within hours, not days The whole thing took her about 3 days to resolve, but she got emergency assistance from her church for the immediate rent crisis. Don't give up - the IRS actually has procedures in place for exactly this situation because they know people need housing! Keep us posted on how it goes - rooting for you! 🤞

All of these responses are overcomplicating it. Just go to your payroll person and ask them to show you exactly how your withholding is calculated. It's literally their job to explain this stuff to you. If they can't explain it clearly, talk to their manager. This shouldn't be a mystery - payroll systems follow specific rules and formulas. someone in your company knows how it works. The $80 additional withholding definitely should be happening every single paycheck regardless of anything else. That part sounds like a straight up error.

I've been dealing with payroll issues for years and here's what I've learned - the inconsistent federal withholding is almost always due to one of three things: 1. **Annualized calculation method**: Some payroll systems project your annual income based on each individual paycheck. If you have a lower paycheck one period, the system thinks you'll earn less for the year and reduces withholding accordingly. 2. **Cumulative withholding**: Other systems use a cumulative approach where they look at your year-to-date earnings and withholding to determine if you're on track. This can cause wild swings from paycheck to paycheck. 3. **Supplemental wage treatment**: Any overtime, bonuses, or irregular pay might be getting treated as "supplemental wages" which have different withholding rules. The $80 additional withholding should absolutely be consistent every single pay period - that's a flat dollar amount that shouldn't vary based on your income level. If that's not happening, it's definitely a payroll error. My advice: Print out 3-4 months of pay stubs and highlight the inconsistencies. Take this to your payroll department and ask them to explain the specific calculation method they're using. Don't accept vague answers - they should be able to show you exactly why each paycheck is different.

One thing nobody's mentioned - what type of business entity are you? Is it an LLC, an S-Corp, a C-Corp? This makes a HUGE difference for how you can be classified! If you're a C-Corp, you're definitely an employee regardless of being a co-founder. If you're an LLC, you could be treated as a partner for tax purposes. S-Corps are somewhere in between. Also, does your employment agreement include anything about being "at will"? If so, that's another strong indicator you're an employee, not a partner.

This is a classic case of worker misclassification that I see way too often in startups. Your CEO doesn't get to unilaterally decide you're a "partner" just because it's more convenient for payroll taxes. The IRS has very specific criteria for determining worker classification, and having equity doesn't automatically make you a partner. Key factors include: - Do you have a written employment agreement? ✓ (You do) - Are you paid a regular salary vs. profit distributions? ✓ (You get $125k salary) - Does the company control how you do your work? ✓ (Likely as CTO) - Have you been receiving W-2s? ✓ (You mentioned you have one) All of these point strongly toward employee status. Your equity is just additional compensation, not a change in your fundamental relationship with the company. I'd strongly recommend pushing back on this change. If your CEO insists on reclassifying you, demand that he consult with both a tax attorney and accountant first. Improper worker classification can result in significant penalties for the business - back taxes, interest, and fines that could seriously hurt your startup. Don't let him shift the tax burden to you without proper legal justification. You signed an employment agreement for a reason!