I went through this exact process last year when I acquired a Delaware LLC from overseas. Here's what worked for me: 1. **ITIN Application First** - As others mentioned, you absolutely need an ITIN before you can complete Form 8822-B. I used Form W-7 and included a letter explaining my need for the ITIN as the new responsible party of a US business entity. 2. **Documentation Tips** - Make sure you include certified copies (not originals) of your passport and any other identity documents. I also included a copy of the business purchase agreement to prove my legitimate need for the ITIN. 3. **Timeline** - My ITIN took about 9 weeks to arrive. Once I had it, the 8822-B processing was much faster - about 3 weeks. 4. **Pro Tip** - Consider mailing your W-7 application via certified mail so you have proof of delivery. The IRS processing centers can be slow to acknowledge receipt. The whole process took about 3-4 months total, but it's really the only proper way to handle this situation. Don't try to shortcut it by submitting incomplete forms - you'll just create more delays and complications down the road. Good luck with your acquisition!

I went through this exact situation 6 months ago when I purchased a tech startup from California. The process definitely requires patience, but here's what I learned that might help speed things up: **ITIN Application Strategy:** - Submit your W-7 with a comprehensive business justification letter - Include copies of your business acquisition documents (purchase agreement, operating agreement, etc.) - Attach a projected tax return showing estimated business income to strengthen your case for needing an ITIN **Critical Timing Tip:** Don't wait for your ITIN to arrive before preparing your 8822-B. You can fill out everything except the ITIN field, so when your number arrives, you can immediately submit the form. This saved me about 2 weeks. **Follow-up Strategy:** Around week 6 of your W-7 processing, start calling the IRS International line (267-941-1000) weekly to check status. They can often tell you if additional documentation is needed before you receive a formal notice. The entire process took me about 11 weeks total, but the business was fully transferred without any compliance issues. It's definitely worth doing properly rather than trying workarounds that could create problems later. One last note - make sure your business continues filing any required returns during this transition period using the existing responsible party information until the change is officially processed.

Has anyone with a similar situation looked into how the QBI phase-out thresholds might affect this decision? As a physician, OP is in a specified service trade or business, so QBI phases out at higher income levels. Wondering if structuring as S-corp vs sole prop affects how those thresholds are calculated.

This is a great discussion! I'm actually a tax professional who works with a lot of physicians in similar situations. A few additional considerations that might help with your decision: 1. **State taxes matter**: If you're in a state with high income taxes, the S-corp structure might provide additional benefits since you'll avoid state income tax on the self-employment tax portion. 2. **Bookkeeping complexity**: S-corps require more formal bookkeeping, payroll processing, and quarterly filings. Make sure to factor in these additional costs when comparing structures. 3. **Timing flexibility**: With a sole prop, you have more flexibility in when you recognize income and expenses. With an S-corp, you're locked into paying yourself that reasonable compensation throughout the year. 4. **Future scalability**: If you plan to expand your moonlighting or add employees, an S-corp structure might be easier to scale. Given your numbers ($200k W-2 + $150k business income), you're likely in the QBI phase-out range, which actually makes the S-corp structure more attractive since you'll get less QBI benefit anyway. The self-employment tax savings of roughly $11,475 on $75k of distributions would probably outweigh the reduced QBI deduction. Have you considered whether your employer has any restrictions on outside business activities that might affect your choice of structure?

I'm currently going through this exact same situation! Filed head of household for the first time on February 24th after my divorce was finalized in December. Got the 570 code on March 7th and have been anxiously checking my transcript every day since. Reading through all these responses has been incredibly reassuring - I was starting to think I'd made some terrible error on my return. It's amazing to see how many of us are dealing with this identical scenario right now! The consistent timelines everyone's sharing (2-4 weeks for filing status changes) really helps set realistic expectations. It sounds like the IRS just needs to verify our head of household eligibility since it's such a significant change from our previous filing status. Based on all the experiences shared here, I'm feeling much more confident that this will resolve automatically in the next few weeks without me having to do anything. Thank you for starting this discussion - finding so many people in the same situation has really helped manage my stress during this waiting period!

I'm going through the exact same thing right now! Filed head of household for the first time on February 20th after my divorce was finalized in September. Got my 570 code on March 5th and have been obsessively checking my transcript ever since. Reading through everyone's experiences here has been such a huge relief - I was convinced I'd made some major error on my return until I found this thread. It's incredible how many of us newly divorced folks are dealing with this identical situation! The consistent timelines everyone's sharing (2-4 weeks for filing status changes) really helps set realistic expectations. It sounds like this is just standard IRS procedure for verifying head of household eligibility when there's been a major life change like divorce. Based on all the experiences shared here, I'm feeling much more optimistic that this will resolve automatically in the next couple weeks without me having to take any action. Thank you for starting this discussion - finding so many people in the same boat has really helped ease my anxiety during this stressful waiting period!

As someone who's dealt with this exact situation, I can confirm what others have said - rent reimbursements from roommates aren't taxable income even if you get a 1099-K. The key is documentation. I'd recommend setting up a simple spreadsheet tracking: (1) money received from your sister each month, (2) the full rent payment to your landlord, and (3) screenshots of the Cash App transactions with clear descriptions like "July rent - Paolo's half." One thing I haven't seen mentioned - if your sister is also on the lease, that actually strengthens your case that this is just cost-sharing between co-tenants, not rental income. The IRS differentiates between someone paying you rent as their landlord versus splitting costs as co-tenants. Also consider asking your sister to include a memo with each transfer like "My half of rent for [Month]" - it makes the purpose crystal clear if anyone ever reviews the transactions.

I went through this exact same situation last year and can offer some practical advice. Like others have mentioned, the rent money passing through your account isn't taxable income - it's a personal reimbursement between co-tenants. Here's what I did to protect myself: I created a simple monthly routine where I screenshot each Cash App transaction from my roommate with the rent description, then screenshot my bank account showing the full rent payment going to the landlord. I keep these in a dedicated folder on my phone and back them up to cloud storage. When I did receive a 1099-K, I worked with my tax preparer to report it properly. We included the full 1099-K amount on Schedule 1, then used the "Other adjustments" section to deduct the non-taxable roommate reimbursements, effectively zeroing out that portion. The IRS never questioned it because the documentation was clear - consistent monthly amounts labeled as rent, matching outgoing payments to the landlord, and both names on the lease showing we're co-tenants splitting costs rather than a landlord-tenant relationship. One tip: consider having your sister add your apartment address in the Cash App memo field along with "rent" - it makes it even clearer what the money is for if anyone ever reviews the transactions.

I'm so sorry you're dealing with this stress! As a fellow single parent, I know how devastating an unexpected $270/month increase can be to a tight budget. Based on what everyone's shared here, it sounds like you've already identified the main culprit - that 1,000 sq ft error in the county records! That's almost certainly why your assessment doubled while your neighbors stayed the same. A 57% increase in recorded square footage would absolutely explain a 95% jump in property value. Here's what I'd recommend doing immediately: 1. Gather your original purchase paperwork, closing documents, or any floor plans that show the correct 1,750 sq ft 2. Take photos of each room to document what you actually have vs. what they think you have 3. Print out your neighbors' assessments from the county website to show the disparity 4. File that appeal ASAP - most counties have deadlines (usually 30-60 days from when you received the notice) The good news is that square footage errors are usually pretty straightforward to fix once you have documentation. The bad news is you'll likely still need to pay the full amount by the due date even while appealing, but you should get a substantial refund once it's corrected. You've got this! With that obvious error in their records, you have a really strong case for getting this fixed.

I've been reading through all these responses and wanted to add one more important tip - document EVERYTHING during this process! Keep records of every phone call you make (date, time, who you spoke with, what was discussed), save copies of all paperwork you submit, and take photos of any documents you hand-deliver. I learned this the hard way when dealing with a similar assessment error a few years ago. The county "lost" my initial appeal paperwork, and because I didn't have proof of when I submitted it, I almost missed the deadline to refile. Now I always get receipt confirmations and keep a paper trail for anything involving government offices. Also, if you do end up needing to pay the full amount while appealing, make sure to note on your payment that it's "paid under protest" and keep a copy of that notation. This can be important if you need to pursue additional remedies later. Given that you've already found the square footage error, you're in a much better position than most people facing these sudden increases. That's concrete, measurable proof that should be pretty hard for them to dispute!