I've been handling W9s for disregarded LLCs for years and can confirm you're absolutely doing it right the first time. The confusion is frustrating but very common - I probably get 3-4 calls a week from vendors asking about "why the EIN changed." What's worked best for me is being proactive about the explanation. I now send an email BEFORE sending the W9 that says something like: "Hi [Vendor], I'm updating our W9 on file with you. You'll notice the format looks different because we're now correctly following IRS requirements for our LLC structure. The business relationship and payment process remains exactly the same - this is purely a tax reporting correction." Then when I send the actual W9, there's no surprise. The key is framing it as "we're now doing this correctly" rather than "we're changing something." Most vendors appreciate the heads-up and it cuts down on the back-and-forth significantly. Going back to the incorrect method might seem easier short-term, but you're setting yourself up for potential IRS matching issues down the road. Trust me, explaining entity structure to vendors is much easier than dealing with IRS notices about mismatched 1099s.

I've been dealing with this exact issue for months and finally found a solution that works. The key is understanding that you're not just filling out a form - you're educating your vendors about tax compliance. What I do now is create a "W9 Update Package" that includes: 1. The correct W9 (parent on Line 1, LLC on Line 2, parent's EIN) 2. A one-page explanation letter on company letterhead 3. A simple before/after comparison showing the old vs. new format The explanation letter addresses the three questions every vendor asks: - Why did this change? (We corrected our W9 to comply with IRS regulations for disregarded entities) - What does this mean for payments? (Nothing changes - still pay the same way to the same entity) - Do I need to do anything? (Just update the W9 in your files and use it for future 1099 reporting) I also include a direct phone number and email for questions. This upfront investment in education has reduced my vendor confusion calls by about 90%. The few who still call usually just want verbal confirmation that it's legitimate. The worst thing you can do is go back to the incorrect method. You're risking IRS notices and potential penalties down the road. Better to spend time educating vendors now than dealing with tax compliance issues later.

Have you checked if the letter mentions any specific tax forms or income sources that might be in question? It's like trying to solve a mystery without all the clues if you don't know exactly what they're questioning. Sometimes these notices are triggered by third-party reporting that doesn't match what you filed.

I went through something similar about 6 months ago. The key thing that helped me was looking at the notice date on the letter itself versus when I received it. In my case, there was almost a 10-day gap between when the IRS says they sent it and when it actually arrived at my mailbox. During that time, I was checking my online account daily and getting increasingly worried. What really put my mind at ease was cross-referencing the specific tax year and amount mentioned in the letter with my own records. The IRS letter referenced a W-2 from an employer that I had completely forgotten about (a small freelance gig that issued a 1099 instead of what I expected). One tip: if you still have your tax software or copies of what you filed, compare line by line with what the letter is questioning. Sometimes it's as simple as a typo in a Social Security number or a form that got lost in the mail to the IRS. Don't panic yet - these discrepancies get resolved more often than not once you can actually talk to someone there.

I'm going through this exact same situation right now! My transcript updated with the 846 code on Thursday, and I've been refreshing SBTPG every few hours since then. Still showing "unfunded" as of this morning, but based on what everyone's saying here, I should see it update by tomorrow hopefully. The TurboTax advance rejection really threw me off too - I triple-checked everything and can't find any issues with my return either. It's reassuring to hear that their system might just be overly cautious this year. Thanks for asking this question because all these responses are super helpful for understanding the timeline!

Hey, I've been dealing with this timing question for years since I'm also in gig work and need to plan around refund timing. From my experience, SBTPG typically updates within 1-2 business days after your transcript shows the 846 code, but I've noticed it can be faster during peak season when they're processing high volumes. Regarding the TurboTax advance rejection - don't stress too much about it. Their algorithm has gotten really strict lately, especially for gig workers. They flag things like income fluctuations, certain deductions, or even just filing patterns that seem "different" from previous years. I got rejected last year even though my return was perfectly fine and processed normally. One tip that's helped me: set up transcript monitoring through the IRS website rather than constantly checking SBTPG. Once you see that 846 code with your refund amount, you'll know SBTPG should update soon after. Also, make sure you factor in SBTPG's processing fees when calculating your expected deposit amount - they can be higher than you expect, especially if you had any additional services through TurboTax.

Something to consider - you might also want to look at tax-loss harvesting before year-end to potentially lower your MAGI. If you have any investments with unrealized losses, selling them could offset some of your gains and potentially get you under the threshold.

Just to add another perspective - if you're really close to the income limits, you might also want to consider maximizing your 401(k) contributions if you haven't already. Traditional 401(k) contributions reduce your AGI (and therefore your MAGI), which could potentially bring you back under the Roth IRA phase-out range. For 2025, you can contribute up to $23,500 to a 401(k) ($31,000 if you're 50 or older). Even if you can't max it out completely, every dollar you contribute reduces your MAGI dollar-for-dollar. This strategy works especially well if your employer offers matching contributions too.

I went through something very similar last year - working temporarily in one state while maintaining residency in another is definitely confusing at first, but once you understand the basic principles it becomes much clearer. The key thing to understand is that for tax purposes, you have two different concepts: your "domicile" (legal residence) and where you physically earn income. Your domicile appears to still be Arizona since that's where your driver's license, voter registration, and permanent address are located. The fact that you're staying in temporary accommodations like hotels and Airbnbs while working doesn't establish Colorado residency. Here's what you'll likely need to do: **Arizona**: File as a resident and report ALL your income, including what you earned in Colorado. As an Arizona resident, they want to tax your worldwide income. **Colorado**: File as a nonresident and report ONLY the income you earned while physically working in Colorado. The good news is that Arizona will give you a credit for taxes paid to Colorado (you'll use Form 309 for this), so you won't be double-taxed on the same income. You'll essentially end up paying the higher of the two states' tax rates. A few practical tips from my experience: - Keep detailed records of your work dates in Colorado - Double-check that your employer is withholding enough Colorado tax (they have a flat 4.55% rate) - Consider making estimated payments if the withholding seems insufficient Most tax software can handle multi-state returns, but given your unique situation with all the traveling, you might want to consult with a tax professional just to make sure everything is handled correctly. Better safe than sorry!

This is a really common situation for people working temporarily in different states! Based on your description, you'll need to file in both Arizona and Colorado, but it's not as complicated as it might seem. Since your driver's license, voter registration, and mail forwarding are all still in Arizona, that remains your tax domicile (legal residence). The fact that you're staying in temporary accommodations while working in Colorado doesn't change this. Here's what you'll need to do: **Arizona**: File as a resident reporting ALL your income, including what you earned in Colorado. Arizona taxes residents on worldwide income. **Colorado**: File as a nonresident reporting ONLY the income earned while physically working in Colorado. Arizona will give you a credit for taxes paid to Colorado (using Form 140), so you won't be double-taxed. You'll essentially pay the higher of the two states' tax rates on that Colorado income. A couple of important things to check: - Make sure your employer is withholding enough Colorado tax (4.55% flat rate) - Keep records of your work start date and any days you might work remotely from Arizona - Consider adjusting your W-4 if withholding seems insufficient Most tax software handles multi-state returns well these days. The key is understanding that temporary work in another state doesn't automatically make you a resident there for tax purposes - your legal ties and intentions matter more than just physical presence.