Has anyone here actually calculated whether C corp status is beneficial with the new corporate tax rates? For companies under $1M in revenue, I'm finding pass-through taxation as an LLC is often still better unless you're retaining significant profits in the business.

Miguel, before you dive deeper into the retroactive election process, I'd strongly recommend doing a comprehensive tax analysis first. Based on your revenue numbers ($875k), you might find that staying as an LLC with pass-through taxation is actually more beneficial. Here's what to consider: C corps face double taxation - the corporation pays tax on profits, then you pay tax again when those profits are distributed as dividends. With your revenue level, this often results in higher overall tax burden unless you're planning to retain most profits in the business for growth. The key factors are: 1) What percentage of profits do you distribute vs. reinvest? 2) Are you taking advantage of the Section 199A qualified business income deduction as an LLC? 3) Do you need corporate fringe benefits that aren't available to LLC members? I've seen many businesses rush into C corp elections thinking it's automatically better, only to find they're paying more in taxes. Run the numbers both ways before going through the complex retroactive election process - you might save yourself a lot of headaches and discover your current structure is optimal.

Check your transcript if you can access it. That'll give you the most detailed info about whats actually happening with your return.

Been dealing with this exact same frustration! Filed through TaxAct and their tracker shows one thing while WMR shows another. From what I've learned, the IRS only updates WMR once daily (usually overnight) and sometimes takes longer during peak season. Your H&R Block Feb 18 date is probably just their estimate based on typical processing times, not actual IRS data. The "accepted" status on WMR means they received it and it passed initial screening - now you're waiting for actual processing. Hang in there, 2-3 weeks is pretty normal right now!

One thing to watch out for: if you withdraw more than the actual qualified expenses from the Coverdell, the excess is subject to income tax PLUS a 10% penalty. I learned this the hard way when my son's scholarship situation changed mid-year after I'd already taken money out of his Coverdell ESA.

Based on my experience as a tax preparer who works with military families, you're absolutely right to be careful about the coordination rules. The key principle is that you cannot use tax-free educational assistance (like GI Bill benefits) and tax-free Coverdell distributions to pay for the same expenses - that would indeed be "double-dipping." Here's how it works in practice: If your daughter's actual housing costs are $1,200/month ($10,800 for 9 months) and she receives $1,500/month in GI Bill housing allowance ($13,500 total), she's actually receiving more in housing benefits than her actual costs. In this scenario, you couldn't take any tax-free distributions from the Coverdell for housing because her housing expenses are fully covered. However, if her actual costs exceed the GI Bill allowance, you can use Coverdell funds for the difference. The important thing is tracking actual expenses versus benefits received, not the school's published room and board figures. I always recommend keeping detailed records of all payments and benefits to ensure compliance with IRS rules. You might also consider using Coverdell funds for other qualified expenses like books, supplies, or equipment that aren't covered by the GI Bill to maximize the tax benefits.

I'm also going through this exact situation right now and it's been such a stressful ordeal! I received my CP05A letter about 3 weeks ago after filing in February and dealing with multiple 60-day review letters. My transcript shows the same 570 and 971 codes that everyone else is mentioning. What's been most frustrating for me is that I've called multiple times and gotten completely different explanations each time - one agent said it was income verification, another said random audit selection, and a third couldn't even tell me what was being reviewed. The inconsistency is maddening when you're trying to figure out what documentation to send. I'm a single parent running a small home-based business, so this delayed refund is really impacting my ability to cover childcare costs and business expenses. I was counting on that money to get caught up on some bills and invest in my business growth. Reading all of your strategies here has been incredibly helpful though! I had no idea I could request case notes to be read to me or ask for a Tax Examining Technician specifically. I'm definitely going to try calling early tomorrow morning and use some of these approaches. The spreadsheet idea matching receipts to specific expense lines is genius - I just sent everything in a big envelope hoping they'd figure it out. Thank you all for sharing your experiences and making me feel less alone in this process. It's reassuring to know that most cases do eventually get resolved, even though the waiting is absolutely brutal. I'll keep you all updated on my progress!

I'm currently dealing with a CP05A letter myself and this thread has been incredibly valuable! I received mine about 6 weeks ago after filing in January and going through the usual identity verification process. Like so many of you, my transcript shows the 570 code with multiple 971 codes. What struck me most reading everyone's experiences is how the lack of clear communication from the IRS creates so much additional stress. I've called three times and gotten three different explanations - business expense verification, income matching, and "routine review." It's exhausting not knowing what they actually want. I'm implementing several strategies I've learned here: I started keeping detailed logs of every phone call (wish I'd done this from the beginning!), and I'm planning to call early tomorrow morning specifically requesting to speak with a Tax Examining Technician and asking for my case notes to be read aloud. The tip about organizing documentation with a detailed spreadsheet is brilliant - I initially just sent everything in one package. For those asking about timing, I've had slightly better luck calling between 8-9 AM on weekdays. The agents seem less rushed and more willing to dig into specifics. The financial stress is real for all of us, but reading everyone's experiences gives me hope that persistence eventually pays off. Thank you all for sharing your strategies and making this feel less isolating!

If you're really in a hurry and the amount is not too large, you can also pay with a credit card through one of the IRS payment processors. There's a fee (around 2%) but it posts immediately. I did this last year when I was up against the deadline and didn't want to mess with wire transfers.

I've been dealing with IRS payments for my small business for years and wanted to share what I've learned. The wire transfer process is definitely confusing at first, but once you understand the format it becomes routine. For the "account number" field, you're essentially creating a coded identifier that tells the IRS exactly what tax liability you're paying. The format varies depending on whether it's personal income tax, business tax, estimated payments, etc. The IRS worksheet should have the specific format for your situation, but it's usually your tax ID (SSN or EIN) followed by the tax form code and period. One thing I always recommend is calling your bank first to make sure they're familiar with federal tax wire transfers. Some smaller banks or credit unions might not process these regularly and could give you incorrect information. The larger banks usually have dedicated tax payment departments that know exactly what to do. Also, make sure you get a confirmation number from both your bank and keep records of the wire transfer. The IRS can take a few days to post the payment even though it's "same day," so having that documentation is crucial if any issues come up later.