One thing to consider - if the IRS gives you the June 2021 effective date and you keep the S election, you'll need to file amended returns for any periods you treated as an S corp before that date. That could mean filing C corp returns for 2020 and part of 2021, which might trigger some nasty tax consequences. Have you calculated what the actual tax difference would be between the two scenarios? Sometimes it's not as bad as people expect.

I went through almost the exact same situation last year with my LLC's S corp election. The IRS initially gave me an effective date that was 18 months later than what I requested, which would have cost me thousands in additional self-employment taxes. Here's what worked for me: I submitted a detailed letter specifically citing Revenue Procedure 2013-30 Section 5.03, which provides relief for situations where the original election was filed but not processed due to IRS administrative issues. The key is proving you had the intent to be an S corp from your requested effective date. I included copies of my original Form 2553 (even though it apparently got lost), certified mail receipts, all my S corp tax returns I'd been filing, and a timeline showing consistent S corp treatment. I also referenced the IRS's own acknowledgment of processing delays during COVID as reasonable cause for the late election. The whole process took about 3 months, but they ultimately approved my original effective date. Before considering revocation, I'd strongly recommend trying this approach first. The documentation requirements are pretty specific, so make sure you hit all the points in Section 5.03 of the Revenue Procedure. If you need help getting through to the IRS to check on your current request status, definitely consider using one of those callback services mentioned above - it saved me weeks of frustration trying to get through on my own.

I just went through this exact same nightmare last month! After reading through all these solutions, I ended up combining several approaches that worked perfectly. I went to the main downtown post office (not my neighborhood branch), used the "Internal Revenue Service Campus, Ogden, UT 84201" format that the USPS worker suggested, and sent it certified mail with return receipt. The downtown postal clerk was immediately familiar with IRS mailings and didn't bat an eye at the address format. Got my green card back within a week confirming delivery, and my S-Corp election was approved in about 3 weeks. One additional tip that saved me stress - I also made copies of everything before mailing, including photos of the completed certified mail form and the package itself. Having that documentation gave me peace of mind that I had proof of what I sent and when. For anyone still struggling with this: the "Campus" formatting really does work, and going to a larger post office makes a huge difference. Don't let one postal worker's unfamiliarity with government addresses derail your filing!

I just want to thank everyone who contributed to this thread! I was pulling my hair out yesterday thinking I was going to miss my S-Corp election deadline because of this postal address issue. After reading all these solutions, I went to the main downtown post office this morning and used the "Internal Revenue Service Campus, Ogden, UT 84201" format exactly as suggested. The clerk there immediately knew what I was doing and processed my certified mail without any questions. She even mentioned that they handle IRS forms regularly and that the "Campus" designation is the standard way they process these government mailings when the automated system needs a street address field. Got my tracking number and should have my green return receipt card in a few days. What a relief! This community is amazing - you all saved me from what could have been a major business filing disaster. Sometimes the simplest solutions really are the best ones. For anyone else dealing with this: definitely try the main post office downtown, use the "Campus" format, and don't let one uninformed postal worker derail your important filings. There's always a solution!

Congratulations! That sudden change to $0.00 is exactly what you want to see. I went through the same thing last month - my balance showed amounts owed one day, then suddenly dropped to zero the next morning. Got my refund deposited exactly 5 days later. The fact that both 2023 and 2024 show $0.00 means the IRS has processed everything and cleared your account. This usually happens in the final stages before they release your refund. Pro tip: Download the IRS2Go app if you haven't already - it'll give you push notifications when your refund status updates. Also worth checking your transcript tomorrow to see if any new transaction codes appeared overnight. You're definitely in the final stretch now!

This is such great news! The sudden change to $0.00 across both tax years is definitely a positive indicator that your return has been processed and approved. I experienced something very similar last year - my balance showed amounts owed one day, then completely zeroed out the next morning. From what I've seen in this community, once your account balance drops to zero like this, you're typically looking at 3-7 business days before the refund hits your account. The IRS system updates are usually pretty accurate when they show these kinds of dramatic changes. Make sure to check your account transcript in the next day or two for transaction code 846 - that's the golden ticket that means your refund has been officially scheduled for deposit. You can access it through the same IRS account portal where you're seeing the $0.00 balance. The timing of this happening within just a few hours is actually really encouraging. It suggests the IRS systems are actively processing your case rather than it just sitting in a queue somewhere. Hang in there - you're almost at the finish line!

I'm dealing with a very similar situation and this thread has been incredibly helpful! I had to repay a $7,200 signing bonus after leaving for a better opportunity before my one-year commitment was up. Like you, I had to repay the full gross amount even though I only received about $4,800 after taxes. Reading through all these responses, it's clear that Section 1341 "claim of right" treatment is the way to go. What really stood out to me is how many people emphasized getting proper documentation from your former employer - that seems to be absolutely critical for protecting yourself if there are ever questions. I'm planning to reach out to my former employer's HR department this week to request a letter on company letterhead documenting the original bonus amount, payment date, repayment date, and confirmation that the repayment was required under the employment agreement. Based on what others have shared, it sounds like this documentation is essential and gets harder to obtain the longer you wait. The fact that multiple people here have successfully recovered $1,200-$2,200 using the credit method versus the deduction gives me a lot of confidence. I was honestly starting to panic thinking I'd permanently lost almost $2,400 in taxes on money I ultimately had to give back. For anyone else in this situation - this thread has been a goldmine of practical advice. The key takeaways seem to be: act quickly on getting employer documentation, understand that the credit method is usually better than the deduction, and don't forget about state tax implications if applicable. Thanks to everyone who shared their experiences!

This thread has been incredibly helpful! I'm dealing with a similar bonus repayment situation and had been feeling completely overwhelmed by the whole process. Reading through everyone's experiences with Section 1341 "claim of right" treatment has given me so much clarity and confidence. What really stands out to me is how consistently people mention that the credit method saves significantly more money than the deduction approach - we're talking about $1,200-$2,400 in additional savings just from calculating it properly. That's a huge difference that makes it worth taking the time to understand both options. I'm also taking notes on the documentation requirements that everyone keeps emphasizing. It sounds like getting a formal letter from your former employer on company letterhead is absolutely essential, and that it becomes much harder to obtain if you wait. The letter should include the original bonus amount, payment date, repayment date, total amount repaid, and confirmation that repayment was required under the employment agreement. For anyone else reading this who's in a similar situation - don't panic like I initially did! The tax code specifically addresses these "claim of right" situations where you have to return income you were previously taxed on. Between this thread and the various resources people have mentioned, there are definitely ways to navigate this successfully and recover those taxes that feel like they're gone forever. Thanks to everyone who shared their experiences and advice. This community has been invaluable for understanding what initially seemed like an impossible situation!

Great question! I've struggled with this same calculation. One approach that's worked well for me is creating a simple iterative calculation in a spreadsheet. Start with your desired net income, then estimate your total tax rate (federal + state + FICA + any other deductions). For most middle-income earners, this ranges from 22-30% depending on your state and filing status. Use the formula: Required Gross Income = Desired Net Income ÷ (1 - Total Tax Rate) So if you want $60,000 net and estimate 25% total withholdings: $60,000 ÷ 0.75 = $80,000 gross. Then verify this by plugging that $80,000 into a paycheck calculator to see if it actually nets you close to $60,000. If not, adjust your tax rate estimate and recalculate. The key is being realistic about your total effective rate - don't just use your marginal tax bracket. Include everything: federal income tax, state tax, Social Security, Medicare, health insurance premiums, retirement contributions, etc. Your last pay stub is the best reference for this.

This is such a helpful thread! I've been struggling with this exact calculation for months. What I've found works best is a hybrid approach combining several of the methods mentioned here. I start with the simple rule of thumb (dividing desired net by 0.75 or 0.70 depending on my tax situation) to get a ballpark figure. Then I use that estimate in the IRS withholding calculator to see what the actual take-home would be. If it's close, great! If not, I adjust the gross amount and run it again. The key insight for me was realizing that pre-tax deductions like 401k and health insurance actually help you reach your net income goal with a lower gross salary. So if you want $50k take-home and you're contributing $6k to your 401k, you might only need a $65k salary instead of $67k because that $6k comes out before taxes. One thing I haven't seen mentioned yet - if you're doing this calculation for salary negotiation purposes, consider asking for the salary in terms of "total compensation" rather than just base salary. Sometimes employers have more flexibility with benefits, stock options, or bonus structures that might help you reach your net income goal more efficiently than just a straight salary increase.