I'm in the exact same situation! Filed our 941-X for 2020 Q2 and Q3 back in September 2021 and still nothing. We're a small restaurant that kept 8 employees on payroll even when we were only doing takeout orders during the lockdowns. The credit would be around $42,000 for us. I've been following this thread closely and just wanted to say thank you to everyone sharing their experiences and suggestions. It's reassuring to know we're not alone in this endless waiting game, even though it's frustrating that so many small businesses are still stuck in limbo. Based on what I'm reading here, it sounds like persistence is key - whether that's through the phone services mentioned, document review tools, or just keeping detailed records for follow-up letters. Has anyone had success with congressional inquiries? I've heard mixed things about whether local representatives can actually help with IRS issues like this.

This thread has been incredibly helpful - thank you all for sharing your experiences! I'm in a similar situation with our 2020 ERC claim filed via 941-X in late 2021, still waiting. Reading through everyone's updates, it seems like there are really three main approaches that have worked: 1) Using tools like taxr.ai to identify and fix potential errors in your filing, 2) Getting through to the IRS via services like Claimyr to get actual status updates, and 3) Being persistent with follow-up documentation and inquiry letters. What strikes me is how many of you discovered errors or missing documentation that was causing delays - makes me wonder if I should review my own filing more carefully. The IRS clearly isn't going to tell you what's wrong; you have to figure it out yourself. For those still waiting like me, it's frustrating but somewhat comforting to know this isn't unusual. Emma Wilson's 26-month timeline gives me hope that these claims are still being processed, just very slowly. I think I'll try the document review approach first, then maybe the phone service if I can't identify any obvious issues with my filing. Has anyone here had their claim outright denied, or have most of you who waited long enough eventually received payment?

Has anyone used any of these online tax programs like TurboTax or H&R Block online? I've been thinking about just doing my taxes myself to avoid these kinds of issues with preparers, but I'm worried I'll miss deductions or make mistakes.

This is definitely not normal and I'd strongly advise against it. I'm a CPA and percentage-based fees tied to refund amounts are considered highly unethical in our profession. The National Association of Tax Professionals explicitly states that fees should be based on the complexity and time required for the work, not on the tax results. When a preparer's pay depends on maximizing your refund, they have a financial incentive to take aggressive positions that might not hold up under IRS scrutiny. I've seen clients get burned by this - they pay higher fees and then face audits because their preparer claimed questionable deductions to inflate the refund. A legitimate tax professional should charge a flat rate or hourly fee regardless of whether you owe money or get a refund. The fact that she's framing this as "aligning interests" is a red flag - a good preparer's interest should be preparing an accurate, compliant return, not maximizing your refund for their own benefit. I'd recommend shopping around for a new preparer who charges transparent, flat fees. Your $150 flat rate was actually quite reasonable for most returns.

I just want to echo what everyone else is saying - you absolutely need to file Form 1065 even with zero activity. I learned this the hard way when I procrastinated on filing for my dormant LLC partnership in 2023 and got hit with penalties. The IRS considers partnerships to be "pass-through entities" that must file information returns regardless of income level. Think of Form 1065 as more of a reporting requirement than a tax return - you're basically telling the IRS "hey, we exist but had no activity this year." For your situation with zero income and zero expenses, the form will be mostly zeros but you'll still need to complete the basic partnership information, partner details (you and your husband), ownership percentages, and Schedule L (balance sheet) showing any initial capital you contributed when forming the LLC. The good news is that many tax software programs have gotten really good at handling these "dormant partnership" scenarios. They'll guide you through exactly which fields need zeros versus which can be left blank. Budget about 1-2 hours for the whole process if you use software - it's really not as intimidating as it seems when there's no actual business activity to report. Don't gamble with those penalties - they add up fast and the IRS doesn't care whether you made money or not. Just file the return and get it off your plate!

As someone who went through this exact situation recently, I can confirm that you definitely need to file Form 1065 even with zero activity. I know it seems pointless when you literally have nothing to report, but the IRS treats this as a mandatory information return for all partnerships, regardless of income level. The process is actually much simpler than you'd expect when there's no business activity. Most lines will be zeros, and you'll mainly need to fill out basic partnership info, partner details (you and your husband with ownership percentages), and Schedule L showing any initial capital contributions you made when setting up the LLC. I used FreeTaxUSA for my dormant LLC partnership return and it took about 90 minutes total. The software does a good job of guiding you through which sections need zeros versus which can be left blank. Make sure you have your EIN and any documentation of initial money you put into the business ready before you start. Those failure-to-file penalties are no joke - $210 per partner per month can add up to thousands even when you made zero income. It's definitely worth spending the couple hours to file rather than risk that kind of penalty. The peace of mind alone makes it worthwhile!

Has anyone actually formed their LLC structure this way, with one disregarded LLC owning another? I'm curious how you handled the paperwork. When filing articles of organization for the second LLC, do you list the first LLC as the member, or do you still list yourself?

This is a great discussion! I've been considering a similar structure for my photography business and a separate e-commerce venture. One thing I wanted to add that hasn't been mentioned yet - make sure you keep meticulous separate records for each LLC even though they're both disregarded entities. The IRS may disregard them for tax purposes, but if you ever face an audit or legal challenge, you'll want crystal clear documentation showing that these are truly separate business activities. Keep separate bank accounts, separate bookkeeping, separate contracts - treat them as completely independent businesses operationally even if they're connected ownership-wise. Also, consider whether you might want to elect S-Corp status for either LLC down the road as your businesses grow. Having the separate entity structure already in place gives you more flexibility for tax planning in the future without having to restructure everything.

I went through something similar when I transitioned from employer insurance to Medicaid mid-year. The confusion is totally understandable! Just to add to what others have said - Medicaid coverage is reported differently than marketplace insurance in tax software. When you get to the health coverage questions, look for options like "government-sponsored coverage" or "Medicaid/Medicare" rather than "marketplace insurance." This should stop those 1095-A warnings from popping up. Also, if you're still worried about getting it right, most tax software has a help chat or phone support that can walk you through the health insurance section specifically. I used that feature when I was unsure and they confirmed that indicating Medicaid coverage for those 5 months was all I needed to do - no forms required. Your return definitely won't get rejected for not having a 1095-A when you were on Medicaid. That warning is just the software being overly cautious about marketplace insurance situations that don't apply to you!

I'm dealing with a similar situation and this thread has been incredibly helpful! I was on Medicaid for about 3 months last year after losing my employer coverage, and I've been getting the same confusing warnings in my tax software. Just to confirm what everyone is saying - I called my state's Medicaid office yesterday and they confirmed that Medicaid recipients typically don't receive 1095-A forms because those are specifically for marketplace insurance with premium tax credits. They said some states send 1095-B forms for Medicaid coverage, but it's purely informational and doesn't need to be submitted with your tax return. The representative also mentioned that when answering health insurance questions in tax software, you should look for options like "I had minimum essential coverage through a government program" or similar wording, rather than marketplace-specific options. This should prevent those scary rejection warnings that don't actually apply to Medicaid situations. Thanks to everyone who shared their experiences - it's really reassuring to know that so many people have successfully filed without issues after having Medicaid coverage!