I was in this situtation for almost 3 weeks. website said verify but when I got through to an agent they told me i was already verified. the online system is a total mess and doesnt update properly. dont stress about it, your probably already good to go.

This is so frustrating but unfortunately totally normal! I went through the exact same thing last year. The IRS systems are ancient and don't communicate with each other at all. After I verified in person, it took almost 3 weeks for the online portal to stop showing that notification, but my refund was actually processed much faster than that. The key thing is that you got verbal confirmation from the IRS employee that your verification was complete. That's what actually matters for processing your return. The online notification is basically just a leftover flag that doesn't get cleared automatically. If you want peace of mind, you can check your account transcript in about a week to see if there's any movement on your return processing. But honestly, I'd just ignore that notification for now and check back in 2 weeks. If it's still there after that AND you haven't seen any progress on your return, then maybe give them a call. The whole system is a joke but at least you did everything right on your end! 🙄

I ran into this exact same issue with my Fidelity 1099-B this year! Those "Proceeds Investment Expenses" entries are definitely confusing at first glance. What I discovered after digging into it is that these represent various small fees that Fidelity collected throughout the year by selling tiny fractional shares from your holdings. This could include things like foreign tax withholdings, regulatory fees, or even small processing fees for dividend reinvestments. The reason you see zero quantity but still have proceeds is because they're selling such microscopic amounts - sometimes just a few cents worth of shares - that it rounds to zero when displayed. But there was an actual sale to generate the cash needed to cover these fees. For tax purposes, you'll need to report these exactly as they appear on your 1099-B, typically as short-term capital gains/losses on Part I of Schedule D. The good news is that Fidelity has already adjusted the cost basis of your remaining SLV shares to account for these transactions, so everything should calculate correctly when you eventually sell. I found it helpful to look at the dates of these transactions and see if they correspond to dividend payment dates or end-of-quarter periods when certain fees are typically collected. Once you understand the pattern, it becomes much less mysterious!

I've been dealing with Fidelity 1099-B forms for several years now, and those "Proceeds Investment Expenses" entries used to drive me crazy too! You're definitely not alone in finding these confusing. What you're seeing is completely normal - Fidelity collects various small fees throughout the year by automatically selling tiny fractional shares when there isn't enough cash in your account to cover them. The -$176 in "Proceeds Investment Expenses" represents the total fees they collected this way during 2024. The zero quantity transactions with matching proceeds are the individual fee collections that add up to that $176 total. Even though it shows zero quantity, there were actual microscopic sales - they're just so small they round to zero when displayed. For your taxes, report these exactly as shown on your 1099-B. They typically go on Part I of Schedule D as short-term transactions. Don't worry about manually adjusting cost basis - Fidelity has already done that automatically for your remaining SLV shares. One tip for next year: if you keep a small cash balance (maybe $50-100) in your account, Fidelity can debit fees directly instead of creating these confusing micro-transactions. But for this tax year, just input everything as it appears on the form and your tax software should handle it correctly!

I'm going through a very similar situation right now and this thread has been absolutely invaluable! As a new business owner who just incorporated my S-Corp in July, I was completely panicking when I saw my accountant put January 1st as the effective date on my Form 2553. Reading everyone's explanations about Revenue Procedure 2013-30 has been such a relief. I had no idea the IRS had specific procedures designed exactly for newly-formed corporations that want S-Corp treatment for the entire tax year. The distinction between legal existence (from actual incorporation date) and tax treatment (retroactive to January 1st) makes perfect sense now that it's been explained so clearly. What I'm taking away from all this discussion is that I need to have a more informed conversation with my accountant about their strategy and make absolutely sure they include that explanatory statement with my first 1120-S filing. It sounds like referencing Rev. Proc. 2013-30 and documenting the circumstances is crucial for avoiding any potential issues if the IRS ever reviews the election. Thanks to everyone who shared their experiences here - this is exactly the kind of real-world guidance that helps cut through all the confusion of tax regulations. I was honestly considering whether I needed to find a new accountant, but it sounds like they actually knew what they were doing and just should have explained it better upfront!

This thread has been incredibly educational for anyone dealing with S-Corp election timing concerns! As someone who went through a very similar situation with my own business formation, I can definitely relate to the initial panic when you see what looks like an incorrect effective date. What I've learned from my experience and from reading all these detailed explanations is that Revenue Procedure 2013-30 really is a game-changer for new business owners. The IRS clearly recognized that forcing new corporations into complex split-year filings would create unnecessary complications, so they created this specific procedure to allow retroactive S-Corp elections to the beginning of the tax year. The key insight that helped me understand this was realizing that legal corporate existence and tax election effective dates serve different purposes. Your corporation legally exists from its incorporation date, but the tax election can apply retroactively for administrative simplicity once the corporation is formed. For anyone in a similar situation, my biggest recommendation is to make sure your accountant includes that explanatory statement with your first 1120-S filing that references Rev. Proc. 2013-30 and explains the circumstances. Having proper documentation upfront can prevent so many potential headaches if the IRS ever has questions about the timing. It's amazing how something that initially seems like a major error often turns out to be standard, beneficial tax planning once you understand the underlying procedures. This is definitely one of those learning experiences that comes with business ownership!

I've been following this discussion and wanted to add something that might help clarify the confusion between your CPA and attorney. The issue often comes down to timing and documentation requirements. Your attorney is correct that construction defect settlements are generally not taxable income when they compensate for property damage or loss of property value. However, your CPA is also right to be concerned about the 1099-MISC creating a paper trail that the IRS will expect to see reported. Here's what I'd recommend: First, get a copy of your settlement agreement and carefully review what the $87,500 was intended to cover. If it's purely for property damage/repairs, then it's likely not taxable up to your basis in the property. Second, contact the builder with a polite but firm request for a corrected 1099-MISC, explaining that construction defect settlements for property damage aren't reportable income under IRS guidelines. If the builder refuses to correct the 1099, you'll need to report the income on your return but then subtract it out with proper documentation (Form 8275 disclosure statement explaining your position). This protects you from audit issues while still claiming the correct tax treatment. The key is having solid documentation - your settlement agreement, any correspondence with the builder, and receipts for actual damages. Don't let the 1099-MISC force you into paying taxes you don't legally owe, but make sure you handle it properly to avoid IRS complications down the road.

I'm dealing with a very similar situation and wanted to share what I've learned from researching this extensively. The confusion between your CPA and attorney is actually pretty common because construction defect settlements sit at the intersection of property law and tax law. From what I've found, the key factors are: 1) What specifically was the settlement for (property damage vs. other damages), 2) Whether it exceeds your basis in the property, and 3) How to handle the 1099-MISC mismatch with the IRS. Based on the responses here, it sounds like your best approach is to first try getting the builder to issue a corrected 1099 or at least a letter acknowledging it was issued in error. If that fails, the Form 8275 route with detailed documentation seems to be the safest way to avoid paying taxes you don't owe while staying compliant. One thing I'd add - make sure you have a clear breakdown of what your $87,500 settlement actually covered. If any portion was for non-property damages (like emotional distress, punitive damages, or lost use), those parts might have different tax treatment even if the property damage portion isn't taxable. Document everything and keep all your settlement paperwork organized. From what others have shared, the IRS may question it later, but having solid documentation upfront makes resolving it much easier.

I've been dealing with a similar refund delay and this thread has been a goldmine of practical solutions! I wanted to add one more tip that worked for me when I couldn't get through using the phone methods. I ended up filing Form 911 (Request for Taxpayer Advocate Service) online through the IRS website. It's specifically designed for situations where you're experiencing economic hardship due to IRS delays. Since you mentioned needing the money for car repairs to get to work, Connor, this could be perfect for your situation. The form asks you to document your hardship and explain what you've already tried to resolve the issue. I filled it out detailing all my failed phone attempts and the financial impact of the delay. Within about 10 days, I got a call from a Taxpayer Advocate who was able to expedite my refund processing. It's not as immediate as getting through on the phone, but it creates an official paper trail and gives you an advocate within the IRS system who can actually make things happen. Plus, if you're still having trouble with the phone methods after trying all these great suggestions, it's another avenue that doesn't require sitting on hold for hours. The form is available at irs.gov - just search for "Form 911" and you can fill it out online. Definitely worth trying if the phone strategies don't work out. Good luck with everything!

This thread has been absolutely incredible - I can't thank everyone enough for all these detailed suggestions! I've been taking notes on everything and finally feel like I have a real strategy instead of just randomly pressing buttons and hoping for the best. I'm definitely going to try the early morning approach tomorrow at exactly 7:00 AM using Jamal's incorrect SSN method. I've got my 2022 and 2023 returns organized, all my W-2s ready, and I've written out specific questions about my refund status. The fact that multiple people have confirmed this method works gives me so much hope! I'm also going to look into Form 911 that Riya mentioned as a backup plan. Since I need my car to get to work and can't afford the repairs without my refund, that definitely seems like it would qualify as economic hardship. Having multiple approaches working simultaneously makes sense. The Taxpayer Advocate Service number (877-777-4778) is also on my list to try if the main line doesn't work. It's amazing how many different phone numbers and strategies you all have shared that I never would have known about otherwise. I'll definitely update this thread once I get through to let everyone know how it goes. This community is absolutely amazing - instead of just complaining about the problem, you've all provided real, actionable solutions. Fingers crossed one of these methods finally gets me the answers I need about my $3,600 refund! Thanks again everyone - you've given me hope when I was ready to give up completely!