Since you mentioned using LegalZoom to set up your LLC, I'd definitely start by contacting them directly. They keep detailed records of all services provided and forms filed on behalf of their clients. You can log into your LegalZoom account online or call their customer service line - they should be able to tell you immediately whether Form 8832 was filed as part of your LLC setup. Most LLC formation services like LegalZoom don't automatically file Form 8832 unless you specifically requested corporate tax treatment, since the default disregarded entity status is simpler for most single-member LLCs. But it's worth checking to be 100% sure. If LegalZoom confirms they didn't file Form 8832 for you, then you can confidently tell your client you're in Category 2 - you'll receive 1099s as an individual since your LLC is treated as a disregarded entity for tax purposes.

Great advice from everyone here! I just wanted to add one more resource that might help - if you're still unsure after checking with LegalZoom, you can also request a transcript of your business tax account from the IRS online at irs.gov using Form 4506-T. This will show any elections or forms filed under your EIN, including Form 8832 if it was submitted. However, based on everything you've described (especially filing Schedule C last year), you're definitely in Category 2. Single-member LLCs are disregarded entities by default, and Form 8832 is only filed when you want to change that default treatment to be taxed as a corporation. One last tip for responding to your client: you might want to mention that as a disregarded entity, they should issue the 1099-NEC using your full name and SSN (not your LLC name and EIN), since that's how the IRS expects to receive the income reporting for tax matching purposes.

I actually went through this same verification process just a few months ago after my move! The address change definitely triggers their system, but it's pretty routine. I'd recommend trying the online verification through ID.me first - it's way more convenient than scheduling an in-person appointment. Your lease agreement should work perfectly as proof of address. I used mine along with my driver's license and Social Security card. The facial recognition part can be a bit finicky, so make sure you have good lighting and be patient if it doesn't work on the first try. The whole online process took me about 15-20 minutes, and my refund was processed within about 2 weeks. Given that you're hoping to get your $3,800 before the holidays, I'd definitely start the verification process soon rather than waiting. The online route should be much faster than trying to get an IRS appointment right now. One tip - take screenshots of all the confirmation pages as you go through the process. I've seen people mention system glitches, so having that documentation can save you from having to start over. Good luck!

I went through this exact same situation when I moved last year! Address changes are definitely one of the most common triggers for ID verification - it's basically their fraud prevention system kicking in when they see a new address that doesn't match their records. I'd recommend starting with the online verification through ID.me on the official IRS website first. It's way faster than trying to get an in-person appointment, especially this time of year. Your apartment lease will absolutely work as proof of address - they accept leases, utility bills, bank statements, anything official with your new address on it. A few tips that helped me: - Have everything ready before you start: driver's license, Social Security card, and your lease - Make sure you have good lighting for the facial recognition part (this was the trickiest step) - Take screenshots of every confirmation page - seriously, this saved me when there was a system hiccup - Be patient if it doesn't work the first time, sometimes it takes a couple tries The whole process took me about 20 minutes online, and my refund came through 12 days later. With your $3,800 refund and wanting it before the holidays, I'd definitely get started on this ASAP! The online route should be much quicker than waiting weeks for an IRS appointment.

18 As someone who works in mortgage processing, I can confirm that transcript timing is crucial for self-employed borrowers. Here's what I tell my clients: If you e-file and pay electronically, your transcript typically becomes available within 7-10 business days after the IRS accepts your return. However, during peak tax season (January-April), it can take up to 2-3 weeks. Pro tip: File your taxes as early as possible in late January. The IRS usually starts accepting returns around January 27th. If you file within the first week, processing tends to be faster since the system isn't overloaded yet. For your mortgage timeline, request both the Tax Return Transcript AND Account Transcript as others mentioned. The Account Transcript is what proves you actually paid your taxes, not just filed them. Many lenders require both documents before they'll approve self-employed borrowers. Given your 8-week timeline, you should have plenty of buffer if you file early and pay immediately. Just make sure your lender knows you're waiting on the 2024 transcript so they can prepare the rest of your file in advance.

I work as a mortgage underwriter and deal with self-employed borrowers daily, so I can offer some additional insights that might help with your timeline. First, the 2-3 week timeframe others mentioned is accurate, but I've noticed that returns filed in the very first week of tax season (late January) often process faster - sometimes within 5-7 business days. The IRS systems are less congested before the February rush hits. One critical point: make sure you're prepared for the identity verification process on IRS.gov BEFORE you need to access your transcripts. The verification questions can be tricky, and if you fail them, you'll be locked out for 24 hours and may need to verify by phone (which adds significant delays). Practice with last year's return information to make sure you can answer questions about previous filings, addresses, and financial accounts accurately. Also, since you mentioned you're a freelance contractor, double-check that all your 1099s are accurate before filing. If there's a discrepancy between what you report and what your clients reported to the IRS, it can flag your return for manual review, which adds weeks to processing time. Your 8-week buffer should be plenty, but having these details sorted out in advance will help ensure everything goes smoothly when you need those transcripts for your lender.

Has anyone actually tried the S-Corp route? My accountant mentioned it could save on SE tax, but said the setup costs might not be worth it unless I'm making at least $60k profit. Any experiences?

Based on your situation with both spouses being self-employed and one business operating at a loss, here are some key points that might help: First, confirm you're maximizing business deductions for both businesses. Even though one operated at a loss, proper documentation of that loss can offset other income. Make sure you're capturing all legitimate expenses - office supplies, equipment depreciation, mileage, professional development, etc. For the profitable business, health insurance premiums paid for self-employed individuals ARE deductible before calculating SE tax (this is different from regular IRAs). If you're paying for health insurance out of pocket, this could directly reduce your $2,400 SE tax burden. Also consider if you qualify for an HSA - those contributions can also reduce SE tax, not just income tax. The retirement accounts (Traditional IRA, SEP IRA, Solo 401k) will help with income tax but won't directly touch that SE tax. However, since you already got your income tax to zero with the saver's credit and Roth contributions, focusing on SE tax reduction through health insurance deductions and maximizing business expenses is probably your best bet. Document everything carefully - the IRS scrutinizes self-employed deductions more closely than W-2 situations.

I'm confused about something - I thought businesses don't have the same limitations as individuals for casualty losses? My accountant told me business casualty losses aren't subject to the federally declared disaster requirement that applies to personal losses. Can someone clarify?

This is exactly why having a second opinion is so valuable for complex tax situations. Your Big 4 tax preparer should definitely know better than to classify insurance proceeds as ordinary business income without proper analysis. Based on what others have shared here, it sounds like you have a strong case for treating this as an involuntary conversion under Section 1033. The key factors working in your favor are: (1) you received insurance proceeds for property damage, (2) you reinvested those proceeds in repairing the same property, and (3) you completed the repairs within the allowable timeframe. Since your total repair costs ($158k based on your comment) exceeded the insurance payout ($135k), you actually have a net casualty loss of $23k rather than taxable income. For S-Corp business property, this loss should flow through to your K-1 without the personal casualty loss limitations. I'd strongly recommend getting documentation together showing the total damage, insurance settlement, and complete repair costs, then having a frank conversation with your tax preparer about why they're not considering the involuntary conversion rules. If they're not familiar with this area, it might be worth consulting with a tax professional who specializes in casualty losses and Section 1033 elections.