3 Tax accountant here - just want to clarify a few things about indirect charitable contributions: 1. The key factor is substantiation. You need to document that your payment was intended as a donation, not just a purchase. 2. The charity should provide a written acknowledgment specifying the amount, date, and charitable purpose. 3. For payments made directly to third-party vendors, keep copies of the invoice showing the charity as the beneficiary, proof of payment, and the charity's written acknowledgment. 4. The charity should definitely record this as an in-kind contribution in their books. This is standard accounting practice. 5. There are special rules for donated services (like your professional time) which generally aren't deductible, but that's different from paying a vendor for services provided to a charity.

8 Quick question for anyone who knows - what about when it's a service donation? My company provides graphic design services to several nonprofits for free (designing their event materials, brochures, etc.). We never charge them, but it's work we'd normally bill at about $8,000 annually. Can we deduct the value of these services as a charitable contribution?

Let me clear this up once and for all. SBTPG 'funded' means they have received your money from the IRS, subtracted their fees, and are preparing to send the remainder to your bank. Based on data from over 200 posts in this community over the past 3 tax seasons, the average wait time from 'funded' to deposit is exactly 1.7 business days. The longest reported wait was 5 business days, and the shortest was same-day. About 68% of people see their money within 48 hours of the 'funded' status appearing. If it goes beyond 3 business days, that's when you should start making calls.

I've been dealing with SBTPG for the past few years and can confirm what others are saying - "funded" definitely doesn't mean the money is in your account yet! From my experience, it means they've got your refund from the IRS and are now processing it on their end. I usually see the deposit 1-2 days after that status appears, but I've learned to always check early in the morning since most banks process ACH transfers overnight. One tip I picked up from this community: if you're worried about timing for bills, you can usually call your bank and ask if they see any pending deposits - sometimes they can see the incoming transfer before it actually posts to your account. Hope this helps ease some anxiety while you wait!

Just to clarify something important - the WMR tool and the actual mailing of checks operate on different schedules. WMR updates once daily (usually overnight) but the paper checks are printed and mailed in batches once per week. So even after your WMR updates to "check mailed," the actual check might not go out for several more days depending on where it falls in their weekly mailing cycle.

I went through this exact situation in February! The IRS switched my refund to paper check due to what they called a "bank verification issue" even though I'd used the same account for years. Here's my timeline: IRS notified me on February 8th, my transcript updated with code 846 (paper check) on February 12th, WMR updated to "check mailed" on February 16th, and I actually received the check on February 23rd. So about 15 days total from notification to check in hand. Pro tip: definitely sign up for USPS Informed Delivery if you haven't already - it'll show you a preview of your mail each morning so you'll know the day your check is coming without having to constantly check your mailbox!

Backup withholding is one of those weird tax things most people never have to deal with. The bank is basically asking "Has the IRS specifically told you that they don't trust you to report your income correctly?" If you answer yes, they'll withhold 24% of any interest your account earns and send it directly to the IRS. For MOST people (like 99%), the answer is NO. You're only subject to backup withholding if the IRS sent you a notice specifically saying so. The most common reason is if you've misreported your SSN or didn't report income from investments in the past.

Great to see you got your answer! Just to add one more reassuring point - even if someone accidentally answered "Yes" when they should have answered "No," it's not a permanent mistake. You can always submit a new W-9 form to the bank later to correct the information if needed. Banks deal with these questions all the time and their staff can help if you're ever unsure about updating your withholding status. Welcome to the world of banking - you're taking a great step toward financial independence!

Has anyone used Crypto Software for handling the accounting side of 338(h)(10) elections? Our company just implemented it and I'm trying to determine if it's worth setting up a specialized template for this transaction type.

This is a really helpful thread! I'm dealing with a similar 338(h)(10) election situation and wanted to add one consideration that hasn't been mentioned yet - the timing of when you recognize the deemed asset sale. The election creates a deemed sale at the close of the acquisition date, so make sure you're not accidentally spreading the gain/loss recognition over multiple periods. Everything should hit your books as of the closing date, even if you're doing the accounting work weeks later like Ravi mentioned. Also, don't forget about any depreciation recapture implications. If you have assets with accumulated depreciation (like equipment or buildings), part of your gain might be subject to depreciation recapture at ordinary income rates rather than capital gains rates. This can significantly impact the tax consequences and should factor into your journal entries. One more thing - if your transaction involved any installment consideration or earnouts, the accounting gets even more complex under 338(h)(10). You'll need to determine the fair value of those contingent payments as part of the deemed sale price. Has anyone dealt with earnout provisions in these elections?