I went through this exact same situation last year! The panic is real, but you're not alone in missing this filing requirement. Here's what I learned from my experience: First, yes you do need to file Form 5500-EZ for plan termination even though it's been 2 years. The IRS considers a rollover to an IRA as terminating the Solo 401k plan. Since your combined plan assets were around $270k, you definitely exceeded the $250k threshold that triggers the filing requirement. The good news is that the IRS has reasonable cause provisions for late filings, especially when you can demonstrate that the failure was due to circumstances beyond your control - like not being informed by your financial institutions about this requirement. When you file, include a detailed reasonable cause statement explaining exactly what happened: the TD Ameritrade acquisition, Schwab's inability to support Roth 401ks, and the fact that neither institution informed you of the 5500-EZ requirement. Document everything with dates and reference any correspondence you had with them. I also recommend checking if you qualify for the DOL's Delinquent Filer Voluntary Compliance Program (DFVCP), which often results in reduced penalties for good faith late filers. Don't wait any longer though - the penalties do continue to accrue, and voluntary compliance always looks better than being contacted by the IRS first.

I'm going through the exact same situation right now - rolled over my Solo 401k in 2023 and just discovered the Form 5500-EZ requirement. The stress is absolutely overwhelming! What really helped me was talking directly to an IRS agent who specializes in retirement plans. They explained that the key is demonstrating "reasonable cause" - which you clearly have since neither TD Ameritrade nor Schwab informed you of this requirement during the rollover process. The agent told me that institutional failures to provide proper guidance is actually one of the stronger reasonable cause arguments they see. Make sure to gather all your documentation from the rollover process - any emails, account statements, or paperwork that shows the institutions guided you through the process without mentioning Form 5500-EZ. The IRS agent I spoke with said this type of documentation significantly strengthens your case for penalty relief. Also, don't let the 2-year delay add to your panic. While it's not ideal, the agent mentioned they regularly process late filings that are much older, especially when there's clear reasonable cause. The important thing is getting it filed as soon as possible with a thorough explanation of the circumstances. You've got this - the situation is fixable and you're definitely not the first person to be caught off guard by this requirement!

Welcome to the Schedule C struggle bus! You're definitely not alone in feeling overwhelmed by these classifications - I think we've all been there in our early business years. For your cash back rewards, with amounts that small ($4-5 monthly), I'd absolutely go with the "Other Income" approach on your Schedule C. The IRS guidance allows this for small, miscellaneous cash back amounts, and trying to proportionally allocate $4 across multiple expense categories would be more work than it's worth. Just stay consistent with whatever method you choose year over year. On the insurance front, you're right that workers comp goes on Line 15 "Insurance (other than health)" - that's a legitimate business expense. For your disability insurance though, since it sounds like it's covering you personally as the business owner, it's generally not deductible as a business expense. This is a common misconception that trips up a lot of new business owners. One piece of advice: don't let perfectionism paralyze you. The IRS is more concerned with reasonableness and consistency than they are with you getting every tiny detail exactly right. Document your reasoning for bigger decisions, but don't stress too much about the small stuff like your monthly cash back rewards. You've got this!

I'm glad I found this thread! I'm in my first year filing Schedule C and have been wrestling with these exact same issues. Reading through everyone's experiences has been incredibly helpful. For what it's worth, I ended up handling my small cash back rewards (around $3-8 monthly) as "Other Income" on my Schedule C after doing way too much research on the topic. The IRS guidance I found suggests this is perfectly acceptable for small, miscellaneous amounts, and honestly the time I spent trying to figure out proportional allocation across expense categories wasn't worth it for such tiny amounts. On the insurance side, I had the same workers comp question and confirmed it goes on Line 15. I almost made the mistake with my disability insurance too - it really does seem like it should be deductible since it feels business-related, but since it's personal coverage for me as the owner, it doesn't qualify as a business expense. One thing I learned from lurking in tax forums is that the IRS really does care more about consistency and reasonableness than perfection. As long as you can explain your logic and you're not being aggressive with questionable deductions, small classification decisions like these aren't going to trigger problems. Thanks to everyone who shared their experiences - it's made me feel much more confident about filing!

I dealt with a similar situation after Hurricane Laura damaged my roof and garage. One thing that really helped my case was getting a "scope of loss" document from a public adjuster who reviewed what my insurance company missed or undervalued. Even though I had to pay the adjuster, it was worth it because they found an additional $12k in damages that insurance initially overlooked. For your chimney situation, you might want to consider getting a structural engineer's assessment showing that removing the chimney versus rebuilding it creates a permanent decrease in your home's structural integrity and value. This could strengthen your FMV decrease argument beyond just the aesthetic/functional loss. Also, don't forget that you can deduct the cost of temporary protective measures you took immediately after the hurricane (like tarping, boarding up windows, etc.) as part of your casualty loss. These often get overlooked but they're legitimate disaster-related expenses. Just make sure everything was within a reasonable timeframe after the federally declared disaster.

I went through a very similar situation after Hurricane Michael hit our area. One crucial detail that hasn't been mentioned yet - make sure you understand the timing rules for casualty loss claims. Since yours was a federally declared disaster, you actually have the option to claim the loss on either your 2024 return (the year it happened) OR amend your 2023 return to claim it there, which could get you a refund faster. The key documentation you'll need beyond what others have mentioned is a detailed timeline showing when the damage occurred, when you received the insurance settlement, and when you made the decision to go with the wall replacement instead of full chimney rebuild. The IRS wants to see that you made reasonable efforts to restore the property but were financially unable to do so. For your specific situation with the chimney-to-wall conversion, I'd strongly recommend getting an appraisal or real estate professional's written opinion on how this impacts your home's resale value. A missing chimney can affect both the aesthetic appeal and functionality (no fireplace option for future buyers), which supports your FMV decrease calculation. One last tip - if you're planning to sell your home within the next few years, keep all this casualty loss documentation. It could affect your capital gains calculation since the casualty loss reduces your home's adjusted basis.

I'm in the exact same boat! Just verified last Tuesday and checking my transcript obsessively. Based on what everyone's sharing here, it sounds like we're all part of the same frustrating waiting period. The two-phase explanation makes total sense - wish someone had told me that upfront instead of just saying "9 business days" like the letter implied. Has anyone found that calling actually speeds things up, or is it just a waste of time? Seems like @Dylan Hughes had some luck with that callback service, but I'm hesitant to pay extra when I've already been waiting this long.

I just went through this process myself a few weeks ago! Completed my ID verification on March 15th and got my refund on April 1st - so exactly 17 days. What really helped me was understanding that the timeline isn't just about verification completion, but also depends on when during tax season you're doing it. The IRS verification team gets more and more backlogged as we get deeper into tax season. One thing I learned is that the "9 business days" they mention in the CP01 letter is more like a best-case scenario from earlier in the season. Right now in late March/early April, 2-3 weeks seems to be the norm. My transcript showed the 570 hold code for almost 2 weeks after verification before switching to 571, then refund came within a week after that. Hang in there - it's frustrating but the money will come!

One thing to keep in mind is that most RSUs are taxed at vesting (your company probably withheld shares for taxes when they vested). So your actual cost basis for tax purposes is the FMV on vesting date, not zero. This means your older RSUs that are "lower than current price" might actually represent a loss if the current price is lower than when they vested! In that case, selling them would give you a capital loss you can use to offset other gains. Check your vesting statements carefully!

Great advice from everyone here! One additional consideration for @Kristin Frank - if you're in a higher tax bracket this year but expect to be in a lower bracket next year (maybe due to job change, retirement, sabbatical, etc.), it might make sense to delay selling the older RSUs to take advantage of the lower long-term capital gains rate when your overall income is lower. Also, don't forget about the Net Investment Income Tax (NIIT) - if your modified adjusted gross income exceeds $200K (single) or $250K (married filing jointly), you'll pay an additional 3.8% tax on investment income including capital gains. This could influence the timing of when you sell. The tools others mentioned like taxr.ai sound really helpful for modeling different scenarios, especially when you factor in state taxes and these additional considerations!