This is a great discussion and I'm learning a lot from everyone's experiences. I run a small electronics repair shop and have been struggling with this exact issue for months. What I've found helpful is creating a clear internal process to document when repairs are actually "complete." We take photos of the finished work and have the technician sign off digitally with a timestamp. This creates a clear audit trail for when the performance obligation was satisfied. One thing I'm curious about - for those of you who recognize revenue at repair completion, how do you handle warranty obligations? Do you set up a separate liability account for potential warranty work, or do you handle it differently? I want to make sure I'm accounting for all aspects of the transaction properly. Also, has anyone dealt with customers who dispute the completion date? We had one situation where a customer claimed we hadn't actually finished the repair when we said we did, which made me question our documentation process.

Great thread - I'm dealing with similar challenges in my appliance repair business. One thing that's helped me streamline this process is implementing a two-stage system: I recognize revenue when the repair is completed (documented with before/after photos and technician sign-off), but I also track a separate "ready for delivery" status in our system. This approach has been really helpful because it clearly separates the service performance (repair completion) from the logistics (shipping/pickup). For customers who want to hold payment until delivery, I make this clear in the contract that revenue recognition and payment terms are separate issues - we've completed our service obligation once the repair is done, regardless of when they choose to pay or receive the item. One tip for documentation: we started requiring customers to acknowledge repair completion via text message or email before we arrange shipping. This creates a clear paper trail showing they accepted the work was done, which has eliminated disputes about completion timing. Our accountant loves having this documentation during tax season!

Im gonna be the one to say what everyone else is thinking... No offense but if you dont get a W2 or 1099, the irs has no way of knowing about that income. Zelle isnt reportig to IRS (yet) so technically...

I want to emphasize something important that builds on what others have said - the IRS has been increasingly focused on tracking digital payment platforms. While Zelle doesn't currently send 1099-K forms like PayPal or Venmo (which now report transactions over $600), that doesn't mean your income is invisible. Banks are required to report suspicious activity, and regular business payments could trigger Currency Transaction Reports or Suspicious Activity Reports. Plus, if you're audited for any reason, they'll scrutinize all your bank deposits and ask you to explain the source of any income that doesn't match your tax return. The safest approach is exactly what others have suggested - report it all on Schedule C as self-employment income. Keep detailed records of every Zelle payment with dates, amounts, and what work was performed. Also document any business expenses you can legitimately deduct. One more thing - since you mentioned this has been going on for 14 months, you might want to consider whether you should have been making quarterly estimated tax payments. If you owe more than $1,000 when you file, you could face underpayment penalties. It's worth calculating what you might owe and making a payment before the next quarterly deadline. Better to be proactive and compliant than risk the stress and financial penalties of an audit later!

I went through almost the exact same situation a few years ago with my ex and his mother both trying to claim my kids. Here's what I learned from that experience: The most important thing to understand is that living at the same address as grandma doesn't automatically give her any rights to claim your children. The IRS has specific tiebreaker rules, and as the biological parent, you have priority over grandparents in almost all situations. For your documentation, focus on proving you provide more than 50% of their total support. This includes: - Your portion of housing costs (if you pay rent/mortgage) - Food specifically for the kids - Their clothing, shoes, school supplies - Medical expenses and insurance - Childcare or after-school activities Even if grandma helps with utilities or buys some groceries, you're likely still providing the majority of kid-specific support. The key is to file as early as possible when the IRS starts accepting returns (usually late January). Don't worry about the "filing first" myth - the IRS doesn't give preference based on filing order, but getting your return processed early can prevent complications. Most importantly, have that conversation with grandma now. Explain that you need these tax credits to continue supporting the kids and that legally, you have priority as their parent. Many family disputes can be avoided with honest communication about financial needs and legal realities. If anyone does try to claim them after you've filed, you'll have the documentation to back up your rightful claim. The IRS disputes usually favor the custodial parent who can prove they're providing primary support.

I've been through a similar situation and want to emphasize something that hasn't been mentioned enough - document your daily caregiving activities too, not just financial support. Keep a simple record showing that you're the one taking your kids to school, picking them up, handling their homework, taking them to doctor appointments, etc. The IRS looks at more than just who pays the bills. They also consider who provides the primary care and maintains the primary relationship with the children. Since you mentioned the kids haven't lived with their dad since 2012, you clearly have both the financial support AND the caregiving responsibilities covered. I'd also suggest taking photos of your kids in their rooms at your address, with their belongings, school backpacks, etc. It sounds silly, but visual evidence that they actually live with you can be surprisingly powerful if you ever need to prove residency. The grandma situation is definitely the trickier one since you share an address, but remember - even if she contributes to household expenses, you're still their parent and primary caregiver. That gives you legal priority under IRS tiebreaker rules. Just make sure you can show you're covering more than half their total support costs. File early, keep your documentation organized, and don't let family pressure make you give up tax benefits you're legally entitled to. Your kids depend on you, and those credits help you provide for them.

I just went through the exact same thing! Had a 922 code appear on my 2019 transcript in early 2022, also showing $0.00, and I was absolutely convinced I had messed something up on my return. Like you, I only had one W-2 that year and everything matched perfectly when I double-checked. After months of worrying about it, I finally got through to an IRS representative who explained that it was triggered by my credit union submitting a corrected 1099-INT form. Apparently they had initially reported my savings account interest with some kind of technical error (wrong routing number or something), but the actual dollar amount was correct all along. When they submitted the correction, it automatically flagged my return for review, but since I had already reported the right amount, the review concluded with no changes needed - hence the $0.00. The agent told me that these automated reviews are actually pretty common and that the $0.00 amount is basically the IRS's way of saying "we looked into this and everything checks out." She said if there had been an actual problem, I would have definitely received a CP2000 notice or other official correspondence by now, and the transcript would show a specific amount owed rather than zero. It's been over 2 years since that code appeared and I've never heard another word about it. Based on my experience and everything I've read, you can probably stop worrying about it - the $0.00 amount really does seem to indicate that their review is complete and resolved in your favor!

I just discovered a 922 code on my 2017 transcript that appeared in 2019, also showing $0.00, and reading through this entire thread has been such a huge relief! Like so many others here, I was initially panicking thinking I had made some major error on my return, but seeing the consistent pattern across everyone's experiences has really put my mind at ease. What strikes me most is how universal this situation seems to be - people with straightforward tax situations discovering these codes years later, all showing $0.00 amounts, and never having any follow-up issues. It's clear these are just routine administrative reviews that the IRS conducts as part of their quality control process. In my case, I had a small investment account that I closed mid-2017, so I'm now wondering if the brokerage submitted some kind of corrected 1099 form that triggered the review. Based on everyone's shared experiences, it sounds like these third-party corrections are incredibly common and often don't actually change anything about your return - they just prompt the IRS to double-check their records. The key takeaway for me (and hopefully others who find this thread) is that the $0.00 amount really is the indicator that everything has been resolved favorably. If there was an actual problem, we would have received official notices and seen real dollar amounts on our transcripts by now. Thank you to everyone who took the time to share their stories - you've helped transform what felt like a tax emergency into understanding that this is just normal IRS record-keeping for completed reviews that found no issues!

Great question about S-Corp basis tracking! As someone who went through this same confusion a few years ago, I can share what I learned from my CPA. For your specific questions: 1. Yes, use the K-1 Part III, but don't just focus on Box 1. You need to look at ALL the boxes - income items (Boxes 1-10) generally increase basis, while deductions and losses (Boxes 11-13) decrease it. Also check Box 16 carefully for distributions and other adjustments. 2. Unfortunately no - there's no single summary box. The IRS expects shareholders to maintain their own basis calculations, which is honestly one of the more frustrating aspects of S-Corp ownership. 3. Since there's no official place this appears on returns, you'll need to reconstruct from Day 1. Start with your initial investment/contribution when you formed the S-Corp, then work through each year's K-1 systematically. One critical tip: Make sure you're handling the ORDER of adjustments correctly. Income and contributions increase basis first, then losses and deductions reduce it, and finally distributions come out last. This order matters because it affects how much loss you can deduct in any given year. Given your simple structure (sole owner, no loans, minimal complexity), your calculation should be straightforward once you get the methodology down. I'd strongly recommend setting up a tracking system now so you don't have to reconstruct again in the future!

I've been through this exact same struggle with my S-Corp basis tracking! One thing that really helped me was creating a running basis worksheet that I update quarterly instead of waiting until year-end. A few practical tips from my experience: 1. Don't forget about estimated tax payments - these don't directly affect your S-Corp basis, but they're important for cash flow planning alongside your basis calculations. 2. If you've made any equipment purchases through the S-Corp that you elected to expense under Section 179, make sure you're accounting for those properly in your basis calculation. The deduction flows through to your personal return but can affect basis. 3. Keep detailed records of ANY money you put into or take out of the business bank account. Even if something seems minor, it might be relevant for basis purposes. Since you mentioned you've always taken distributions less than your estimated basis, you're probably in good shape, but getting the exact numbers will give you peace of mind and help with future planning. The reconstruction is tedious but absolutely worth doing correctly!