This is exactly the kind of situation where I wish the IRS would modernize their systems faster! We had a similar issue last year with a $2,900 overpayment on our 941 and ended up waiting 12 weeks for a paper check. One thing that helped us manage the cash flow impact was reaching out to our bank about a short-term line of credit while we waited. Since we had the 941X filing receipt showing the expected refund amount, they were willing to work with us on a small bridge loan at a reasonable rate. Also, make sure you're tracking your refund properly in your books - we initially recorded it as receivable income but our CPA advised treating it as a reduction to payroll tax expense instead since it's technically a correction rather than new income. Just something to consider for your accounting!

I went through this exact same frustration last year with a $3,200 Form 941X refund. Unfortunately, as others have mentioned, there's no direct deposit option for these - it's paper checks only, which is ridiculous in 2025! What I learned from calling the IRS multiple times (before I knew about services like Claimyr) is that 941X refunds go through a completely different processing system than individual tax refunds. The employment tax division handles these manually, and their systems aren't connected to the electronic refund infrastructure. One tip that might help with cash flow while you wait - if you have other quarterly tax payments coming up, you can potentially apply future 941X refunds as credits toward those payments instead of requesting a refund check. You'd need to contact the IRS to set this up, but it can help with the timing if you have upcoming tax liabilities. Just make sure your accounting team is aware of any credits you arrange so they don't double-pay. The whole process is outdated but unfortunately we're stuck with it for now. I'd budget for at least 8-12 weeks realistically, despite what the official timelines say.

Quick question - does anyone know if you need to file Schedule A with Form 990-EZ when doing a retroactive reinstatement for a 501(c)(5) labor organization? I'm in a similar situation but getting conflicting info.

Just wanted to add another perspective on the liability reporting question. I went through a similar reinstatement process for our trade association (also 501(c)(5)) last year, and one thing that tripped me up initially was understanding what constitutes a "liability" in this context. Beyond the obvious ones like unpaid bills and loans that others mentioned, don't forget about accrued payroll taxes, deferred membership dues (if you collect dues in advance), and any accrued vacation pay for employees. These are all liabilities that need to be reported on Line 26 even under cash accounting. Also, since you're doing 10 years of back filings, make sure you're consistent in how you report liabilities across all years. The IRS will notice if your methodology changes dramatically between years without explanation. Good luck with your reinstatement - the process is tedious but definitely doable!

As someone who's been doing content creation for a few years now, I can confirm that both expenses you mentioned are likely deductible if you're treating this as a legitimate business. For the pedicures/manicures: Since your feet are literally the product in your content, these fall under "ordinary and necessary" business expenses. The key is documentation - keep receipts and note which services were specifically for content creation vs. personal maintenance. I recommend creating a simple spreadsheet linking each service to specific content/photoshoots. For the Surface tablet: If you're using it exclusively (or nearly exclusively) for your business, you can deduct the full purchase price using Section 179 or depreciate it over time. Since you mentioned it's basically only used for taking photos and posting content, you're in great shape here. Pro tip: Start tracking your business expenses in a dedicated app or spreadsheet right now. Include date, amount, purpose, and how it relates to your income-generating activities. This will make tax time so much easier and give you confidence if you're ever questioned about deductions. Also consider other potential deductions you might be missing: portion of your phone bill, internet costs, props/backgrounds, lighting equipment, storage/cloud services, and even a portion of your home if you have a dedicated space for content creation.

Great question! As someone who works in tax preparation, I can tell you that both of these expenses can potentially be deductible, but the key is establishing a clear business purpose and maintaining proper documentation. For your pedicures and manicures: Since your feet are the focal point of your content and directly generate income, these treatments can qualify as ordinary and necessary business expenses. However, you'll need to distinguish between basic maintenance (personal expense) and treatments specifically for your content creation (business expense). Keep detailed records showing which services were done specifically for photoshoots or content creation. For your Surface tablet: If you're using it exclusively or primarily for your business activities (taking photos, editing, posting), you can likely deduct the full cost. You can either take the full deduction in the year of purchase using Section 179 or depreciate it over several years. Some important tips: - Keep all receipts and maintain a business log - Consider opening a separate business bank account - Track the percentage of business vs personal use for any shared items - Document your content creation schedule to show the business connection Since this is your first year with significant income, I'd also recommend consulting with a tax professional who can review your specific situation and ensure you're maximizing deductions while staying compliant.

Has anyone filed a Form 709 electronically? When I go through TurboTax or H&R Block software, they seem to handle income tax returns but not gift tax returns. Am I missing something, or do these forms still need to be filed on paper?

Great question about Form 709! I went through this exact situation last year when I sold my townhouse to my nephew for $180k when it was worth $420k. One crucial detail that hasn't been mentioned yet - make sure you understand the timing requirements. Form 709 is due by April 15th of the year following the gift (so April 15, 2025 for your 2024 transaction). However, if you request an extension for your income tax return, it automatically extends your Form 709 deadline to October 15th. Also, since your gift amount ($405k) exceeds the 2024 annual exclusion of $18,000, you'll definitely need to file Form 709 even if you don't owe any gift tax due to the lifetime exemption. The IRS wants to track these large gifts against your lifetime exclusion amount. One more tip - if this is your first Form 709, make sure to include a clear cover letter explaining the transaction. The IRS appreciates transparency, and it can help avoid follow-up questions later.

Has anyone used Drake Tax software for this situation? I'm preparing several S Corp returns with SEP contributions and Drake seems to automatically put the current year's contribution (made in the following year) on Line 17, but I want to make sure it's handling it correctly.

This is such a common source of confusion! I went through the exact same thing when I started handling my family's S Corp taxes. The key insight that finally clicked for me is that SEP contributions are one of the few exceptions to the normal cash-basis timing rules. Think of it this way: the IRS wants to encourage retirement savings, so they created special timing rules that let you make the contribution after year-end but still deduct it for the previous tax year. This gives you time to see your final numbers before deciding on the contribution amount. Just make sure when your brother makes that 2023 SEP contribution in March 2024, he tells the financial institution it's specifically for tax year 2023. They should give you some kind of documentation confirming this designation. Then that amount goes on Line 17 of the 2023 Form 1120S, even though the cash won't leave the business account until 2024. The deadline for making the contribution is the same as the filing deadline for the return (including extensions), so you have plenty of time to get it sorted out.