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Just wanted to share my experience as someone who recently went through this exact situation. I had overdue returns for 2019 and 2020, and like you, I was confused about the IP PIN requirement on PriorTax. After reading through all the helpful advice in this thread, I ended up calling the IRS IP PIN line at 1-800-908-4490 (thanks Hunter Hampton for that number!). Surprisingly, I got through in about 20 minutes and confirmed I didn't have an IP PIN. The agent explained that the confusion often comes from tax software asking about the most recent year's PIN even when filing older returns. I ultimately decided to try a different service after reading about the hidden fees issue with PriorTax. Used FreeTaxUSA for my 2019 return and one of the AI-powered services mentioned here for 2020. Both were much more transparent about their pricing upfront, and neither had confusing IP PIN questions. My advice: definitely verify your IP PIN status first using either the IRS website or phone line, then shop around a bit before committing to any service. The peace of mind of knowing exactly what you'll pay is worth the extra research time.
This is exactly the kind of real-world experience that's so helpful! Thanks for sharing your step-by-step process, Jason. It's reassuring to hear that the IRS IP PIN line actually has reasonable wait times compared to their main number. I'm definitely going to follow your approach - verify the PIN status first, then compare services. The transparency issue with fees seems to be a real concern with some of these online tax services. Did you find that FreeTaxUSA and the AI service you used were significantly cheaper than what PriorTax was quoting, or was it more about the upfront clarity on pricing?
I've been following this thread closely since I'm dealing with a similar situation - overdue 2021 return that I keep putting off. The IP PIN confusion seems to be a common issue across multiple tax services, not just PriorTax. What I found really helpful from reading everyone's experiences is that there are essentially three steps to handle this properly: 1) Verify your IP PIN status through the IRS (either online or that direct phone line), 2) Compare the actual total costs of different services upfront, and 3) Make sure whatever service you choose clearly explains their process for prior year returns. The hidden fees issue is particularly concerning since we're already dealing with potential penalties for late filing. The last thing anyone needs is surprise charges on top of everything else. Has anyone here actually calculated the total cost difference between these various services when you factor in all fees? I'm curious if the premium services like the AI-powered ones end up being cost-effective when you consider the time savings and reduced confusion.
Has anyone used TurboTax for handling this situation with LLC startup costs for a previously dormant company? I'm wondering if it walks you through this correctly or if I should use a different tax software.
I used TurboTax Self-Employed last year for this exact scenario. It does ask about startup costs and has a section for them, but honestly it wasn't super clear about the distinction between an LLC formation date vs actual business start date. I ended up calling their support line to confirm I was doing it right.
I went through almost the exact same situation last year! Formed my LLC in 2022 but didn't actually start using it until 2024. The key thing to understand is that the IRS looks at when you began "actively conducting business" rather than when you formed the entity. For your $6,500 in startup costs, you'll be able to deduct $5,000 immediately in 2024 and then amortize the remaining $1,500 over 15 years (so $100 per year). Make sure to keep detailed records of all these expenses and document when you first started engaging in business activities - things like your first customer contact, initial marketing efforts, or when you started actively trying to generate revenue. The dormant period doesn't hurt you at all. Many people form LLCs as a protective measure and then don't use them right away. What matters is demonstrating that 2024 is when you actually began operating with the intent to make a profit. Good luck with your new business venture!
This is super helpful! I'm actually in a similar boat - formed my LLC in early 2023 but only started getting serious about the business this year. Quick question though: what kind of documentation did you use to prove when you "began actively conducting business"? I'm worried the IRS might challenge the timing since my LLC has been around for a while. Did you keep records of things like your first business bank account activity, initial website launch, or first marketing campaigns?
I'm dealing with a very similar situation right now - my biggest client issued a 1099-NEC to my personal name instead of my LLC (S-corp election). After reading through all these responses, I'm definitely going to request a corrected form first before exploring the other options mentioned. One thing I'm wondering about - has anyone had success getting a correction when the client is a large corporation with strict procedures? My client is a Fortune 500 company and I'm concerned they might have rigid policies that make corrections difficult. I'm planning to contact their accounts payable department, but I'm wondering if there's a specific approach that works better with bigger companies. Also, for those who had to go the Schedule C route when corrections weren't possible - did you run into any issues with state tax filings? I'm in California and I'm worried about creating mismatches at the state level too if I have to report the income personally and then transfer it to the S-corp.
For large corporations, I've found that contacting their vendor management or tax compliance department (rather than just accounts payable) tends to be more effective. Fortune 500 companies usually have dedicated teams that handle tax document corrections because they deal with this issue regularly. Try asking for their "1099 correction process" specifically - most big companies have established procedures. When you contact them, emphasize that this is a tax compliance issue that could affect both parties if not corrected. Include your EIN letter and a brief explanation of your S-corp election. Many large companies will process corrections more readily when they understand it's not just a preference but a legal requirement for proper tax reporting. Regarding California - yes, you'll definitely want to handle state filings consistently with your federal approach. If you end up having to report on Schedule C federally and then transfer to S-corp, you'll need to do the same on your California returns. The key is maintaining the same paper trail at both levels so the documentation matches if either agency has questions.
I had this exact same issue last year with my LLC taxed as S-corp! What ended up working for me was being very persistent but professional with the client. I sent them a formal letter (not just an email) that included: 1. A clear explanation that the 1099-NEC was issued incorrectly to my personal name/SSN instead of my business name/EIN 2. A copy of my EIN determination letter showing my business entity 3. The specific corrected information they needed to use 4. A reference to IRS requirements for proper 1099 reporting to business entities I also mentioned that incorrect 1099s could potentially cause issues for both of us during IRS matching processes. The formal letter approach seemed to get more attention than my previous emails, and they issued the correction within two weeks. If you haven't tried the formal letter route yet, I'd recommend that before exploring the more complex workarounds. Most clients want to stay compliant once they understand the issue properly. Keep copies of everything you send for your records - this documentation will be valuable whether they cooperate or you need to pursue other options.
This is excellent advice about the formal letter approach! I'm actually dealing with this same issue right now and had only been sending emails. Could you share what specific language you used when referencing "IRS requirements for proper 1099 reporting to business entities"? I want to make sure I'm citing the right regulations or guidance when I write my formal letter. Also, did you send it via certified mail or regular mail? I'm thinking certified might help ensure it gets proper attention from their compliance department.
For the IRS requirements language, I referenced IRC Section 6041 and the Instructions for Form 1099-NEC, which specify that payments to corporations should be reported using the business name and EIN, not the individual's name and SSN. I also mentioned that improper reporting could result in backup withholding issues under Section 3406. I definitely recommend certified mail with return receipt - it shows you made a formal, documented effort to resolve the issue, which the IRS will appreciate if you later need to explain why a 1099 doesn't match your filings. The certified mail also tends to get routed to the right department instead of getting lost in regular customer service channels. I kept it professional but emphasized that this wasn't just a preference - it was required for proper tax compliance for both parties. Most companies respond well when they understand it's a legal requirement rather than just an administrative request.
11 Has anyone noticed that the IRS systems seem worse this year than ever before? I've had multiple issues with payments not being properly credited, and I know several people who've had similar problems. I made a payment in February and it took until May for it to show up in my account!
17 Absolutely! The IRS is dealing with decades-old computer systems and not enough staff. I read somewhere they're still using programming languages from the 1960s for some of their systems. Plus they got hammered with all the COVID relief payments and changes to tax laws. It's a miracle anything works at all.
I've been through this exact situation! The most likely scenario is that your payment was received but hasn't been fully processed yet. The IRS systems can be incredibly slow, especially during busy periods. Here's what I'd recommend: First, make sure you have all your documentation ready - your Direct Pay confirmation number, bank statement showing the payment cleared, and the notice you received. When you call the IRS (and yes, you'll probably need to call), they can use your confirmation number to trace exactly where your payment went. The interest charges from 4/15/2024 to 7/15/2024 suggest this might be related to a prior tax year balance, not your recent payment. Double-check your Direct Pay confirmation to make sure you applied the payment to the correct tax year and tax type. Also, try accessing your IRS online account at different times of day - their systems are often overloaded during peak hours but work better early morning or late evening. If you can get in, you should be able to see a payment history that shows where your $5,200 went. Don't panic - this is fixable, just requires some patience and persistence with the IRS phone system!
This is really helpful advice! I'm new to dealing with IRS payment issues and this gives me hope that it's actually resolvable. Quick question - when you mention checking the payment history in the online account, how long did it typically take for payments to show up there? I'm wondering if I should wait a bit longer before calling or if I should call immediately while the trail is still fresh.
Anastasia Ivanova
This is such a frustrating but unfortunately common issue with the IRS website system! I went through something very similar earlier this year and completely understand the anxiety it causes when you're trying to be responsible about your tax obligations. The good news is that if your payment came out of your bank account, that's the strongest indicator that your payment plan is working correctly. The IRS payment processing system operates separately from their website display system, so payments can process perfectly even when the online portal shows error messages. A few suggestions that helped me: - Try accessing your account during off-peak hours (early morning around 6-7 AM or late evening after 10 PM) - Use the "Get Transcript" feature instead of the payment portal - it often shows payment plan information even when the regular account view doesn't work - Call the automated payment line at 1-888-353-4537 for account information that's sometimes more current than the website Since you set up your payment plan promptly after filing and your first payment processed successfully, you're protected from failure-to-pay penalties as long as you continue making scheduled payments on time. Keep your confirmation number/email from when you set up the plan as additional protection. The IRS systems have been particularly overloaded this year, but this appears to be a display issue rather than an actual problem with your payment arrangement. Try not to stress too much - you did everything right!
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Chloe Martin
ā¢This is incredibly helpful advice! I'm dealing with this exact same situation right now and was starting to panic that something was wrong with my payment plan setup. It's such a relief to know that the payment processing and website display are separate systems - that explains so much about why my bank shows payments going through but the IRS website keeps showing that error message. I'm definitely going to try accessing the site during those off-peak hours you mentioned, and the "Get Transcript" option sounds like exactly what I need. I had no idea there was an automated payment line either - that's going to save me from trying to get through their regular customer service line which seems impossible. Your point about keeping the confirmation number is really reassuring too. I did save everything when I set up the payment plan, so it's good to know that protects me from penalties even if their website is having technical issues. Thanks for sharing your experience - knowing that other responsible taxpayers have dealt with this same frustrating glitch makes me feel so much better about the situation!
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Aaliyah Reed
I'm going through this exact same frustrating situation right now! Filed in early February, set up my payment plan immediately, and have been staring at that "Your information is not available at this time" message for over a month. It's been causing me so much anxiety because I want to make sure everything is set up correctly. Reading through all these responses has been incredibly reassuring though. I checked my bank account after seeing everyone's advice, and sure enough, my scheduled payments have been processing exactly as they should. It never occurred to me that the payment processing system and website display could be separate - that explains everything! I'm definitely going to try accessing the site during off-peak hours like several people suggested, and I'll check out that "Get Transcript" option since so many folks mentioned it shows payment plan info even when the regular portal doesn't work. That automated phone line at 1-888-353-4537 sounds like a lifesaver too. It's honestly ridiculous that so many responsible taxpayers are dealing with this same technical glitch when we're trying to do the right thing and stay current on our obligations. The stress of not being able to confirm your payment plan status is just unnecessary! But knowing this is a widespread IRS website issue rather than something wrong with our individual accounts makes me feel so much better. Thanks to everyone who shared their experiences - it really helps to know we're not alone in dealing with this broken system!
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