Just want to add my experience to this thread - I went through this exact same situation about 6 months ago and it was absolutely nerve-wracking! Filed my Form 2553 in August and didn't get the acceptance letter until November (14 weeks total). The thing that helped me the most was what several people here have mentioned - operating as if the election was approved while keeping meticulous documentation. I set up payroll for myself, started making S-Corp estimated payments, and basically treated my LLC as an S-Corp from day one. When the acceptance letter finally came, it was indeed backdated to my requested effective date, so all those decisions were retroactively validated. For anyone just starting this process - definitely send your duplicate copy via certified mail at the 8-week mark. I wish I had done that sooner because it would have given me peace of mind knowing they at least received something. Also, start that spreadsheet tracking both tax scenarios immediately. It saved me from making any costly mistakes during the waiting period. The IRS really needs to modernize this process, but in the meantime, this community thread is a goldmine of practical advice. Hang in there everyone - the vast majority of properly filed elections do get approved, it's just a test of patience!

I'm dealing with this exact same situation and honestly, this thread has been a lifesaver! Filed my Form 2553 about 5 weeks ago and the uncertainty is killing me. I've been checking my mailbox obsessively every day hoping for some sign of progress. What's really frustrating is trying to make business decisions when you don't even know your tax classification. I need to set up a business bank account and the bank keeps asking about my entity type. I've been showing them my filed Form 2553 as proof of intent, but some institutions want that official acceptance letter. I'm definitely implementing that dual-scenario spreadsheet approach that everyone's been recommending. It makes so much sense to prepare for both possibilities rather than just sitting in limbo paralyzed by uncertainty. Also planning to send the certified mail duplicate at the 8-week mark with that specific "DUPLICATE - DO NOT PROCESS IF ORIGINAL ALREADY PROCESSED" language. One thing I'm curious about - has anyone had success getting status updates by physically visiting a local IRS office? I know most things are handled by the service centers, but wondering if face-to-face might yield different results than the phone system. The closest office is about an hour drive but might be worth it for peace of mind. Thanks to everyone for sharing their experiences and strategies. It's reassuring to know we're all navigating the same broken system together!

LLC vs S-Corp doesnt matter for medicaid its all about your AGI. Go with LLC since your income isnt high enough for S corp to make sense. S corps are a pain with the extra paperwork and payroll requirements!!! An accountant will charge you like $1200+ just for s-corp tax returns. Make sure your tracking all your business expenses properly to lower your AGI. Home office, internet, phone, mileage, insurance, equipment. Every $1000 in legit deductions could be the difference in qualifying or not.

As someone who went through this exact situation two years ago, I can confirm what others have said - your business structure won't help with Medicaid eligibility at your income level. I was making around $30k with my freelance writing business and spent way too much time researching S-Corps thinking it would somehow help with healthcare costs. The reality is that at $28k annually, you're likely well within the Medicaid income limits for expanded states (usually around 138% of federal poverty level, which is about $20,120 for a single person in 2024). Your Modified Adjusted Gross Income is what matters, and that includes your net self-employment income regardless of business structure. My advice: stick with sole proprietorship or form a simple LLC for liability protection if needed. Focus your energy on properly tracking deductible business expenses - that's what will actually lower your MAGI. Things like your home office percentage, business use of your phone/internet, professional development courses, and business equipment can all reduce your taxable income. I wasted months overthinking the business structure when I should have just applied for Medicaid sooner. The application process was much simpler than I expected, and I qualified easily with similar income to yours.

New member here and unfortunately joining the Mississippi tax refund waiting club! 😩 Filed my MS state return on February 13th and I'm at 12+ weeks of absolute silence from the DOR. My federal refund showed up in 16 days but Mississippi seems to be operating on geological time. Called twice and got completely different timelines - first rep said 6-8 weeks, second one said "could be up to 16 weeks due to system enhancements." That "where's my refund" tool has been stuck on "processing" since early March and I'm starting to think it's just decorative at this point. Reading through everyone's experiences here is both validating and infuriating - clearly Mississippi wasn't prepared for their own fraud prevention rollout. It's mind-boggling that other states manage security measures without grinding to a complete halt. Anyway, glad I found this community where we can all commiserate while waiting for Mississippi to remember how to process tax returns! Fingers crossed we all see some movement soon 🤞

Just joined this community after reading through all these experiences and wow, I feel so much better knowing I'm not alone! Filed my MS state return on February 9th and I'm going on 14+ weeks of that dreaded "processing" status. My federal refund came through in just 12 days but Mississippi seems to be stuck in the stone age. Called the DOR twice - first rep said 8-10 weeks, second one told me "up to 20 weeks due to enhanced verification" which honestly made my jaw drop. That "where's my refund" tool is basically useless at this point - hasn't changed since March. It's frustrating that they implemented these fraud prevention measures without apparently having the infrastructure to handle them efficiently. Other states manage security without these ridiculous delays! Reading everyone's stories here is both comforting and infuriating, but at least we're all in this together. Fingers crossed Mississippi gets their act together soon because people really depend on these refunds! 🤞

This is a really frustrating situation, but you're definitely not alone in dealing with this backup withholding issue. I went through something similar with TD Ameritrade a couple years ago when they suddenly started enforcing the W-9 certification requirements more strictly. The key thing to understand is that this 24% backup withholding is essentially the IRS holding your money as collateral until you can prove you've properly reported your income. It's not a penalty - it's more like an overpayment that you'll get back when you file your taxes. Here's what I'd recommend based on my experience: 1. **Fix the W-9 immediately** - Log into your Robinhood account and complete the tax certification process. This won't get your current money back, but it will prevent future withholding. 2. **Keep detailed records** - Screenshot everything showing the withholding amounts, save all emails from Robinhood about this, and keep copies of your W-9 submission. 3. **Wait for your 1099-B** - Robinhood will send you a 1099-B form early next year that shows both your trading activity and the backup withholding amount. This is what you'll use to claim the credit on your tax return. 4. **File your taxes promptly** - The sooner you file, the sooner you can get your refund if you're owed one. The reason different brokers handle this differently is that they have varying levels of automation and verification systems. Some are more proactive about getting your tax info certified upfront, while others (like Robinhood apparently) are more reactive and impose withholding when issues arise. I know it's frustrating to have that money tied up, but at least it's earning you a guaranteed credit on your taxes rather than sitting in a low-interest account somewhere.

I went through this exact same situation with Robinhood last year and it's incredibly frustrating! The backup withholding caught me completely off guard too since I'd never had issues with other brokers. What helped me was understanding that this is actually a pretty common issue when transferring between brokers. Each brokerage has their own system for verifying tax information, and sometimes things don't transfer over properly even if you had everything set up correctly at your previous broker. A few things that might help: **Immediate steps**: Log into your Robinhood account right now and look for their tax documents section. You'll need to complete a new W-9 form with them. Don't assume they have your info just because Schwab did - treat it like a completely fresh setup. **Documentation**: Take screenshots of everything showing the backup withholding amounts and save all communications about this issue. You'll want this paper trail when tax season comes. **Timeline expectations**: Unfortunately, there's no way around waiting until you file your 2025 taxes to get that money back. The IRS has already received it from Robinhood, so it's essentially an advance payment on your taxes. **Silver lining**: If you don't end up owing much in taxes, you'll likely get most or all of that $2k back as a refund. The backup withholding often ends up being more than people actually owe. The good news is that once you get the W-9 properly submitted and verified, this shouldn't happen again on future trades. Just make sure to confirm with Robinhood that they've processed it before making any more significant transactions. Hang in there - I know it's frustrating to have that money tied up, but you will get it back!

Check if you might qualify for the IRS Fresh Start program too. It helps people who owe back taxes with payment plans and might even reduce penalties. I owed about $3k from 2016 and was able to set up a monthly payment plan of just $85. The most important thing is to be proactive and contact them before they start more aggressive collection actions.

I went through something very similar with a 2016 tax debt that I discovered years later. That transcript format can be really confusing at first! The key thing to understand is that your original debt was $2,750.35, but it's now grown to over $3,700 with interest and penalties. Here's what I'd recommend based on my experience: First, call the IRS to get your current balance since that transcript is from 2022 and more interest has accumulated. Second, ask about penalty abatement options - you might qualify for first-time penalty abatement if you had clean tax history before 2017. Third, don't panic about paying it all at once - the IRS offers payment plans even for older debts. The most important thing is to address this proactively. I waited too long and ended up with a tax lien that took months to resolve. But once I called and set up a payment plan, the stress went away and I was able to handle it with manageable monthly payments. You've got options, so don't let the anxiety overwhelm you!