Did you claim any credits like EIC or CTC? That usually triggers more review

Same thing happened to me last year with the 570/971 combo! Turns out they just needed to verify my identity since I moved states. Got a CP05A notice in the mail about 10 days after the codes showed up asking me to verify online or call. Did the online verification and my refund released about 3 weeks later. The waiting is the worst part but hang in there! 🤞

I've been following this thread and wanted to add my perspective as someone who went through a very similar situation. The "wait and report after leaving" strategy mentioned by others is actually quite effective, but I'd also suggest documenting everything NOW while you're still there. Start keeping detailed records of: your work schedule, any emails showing you're required to be in the office, descriptions of your ongoing duties vs. project-based work, and any communications about your employment status. Take screenshots of job postings if they advertised your position differently than how you're classified. This documentation will be crucial whether you decide to approach your employer directly, file with the IRS, or report after finding a new job. I made the mistake of not documenting enough in my situation, and it made proving my case much harder later. Also, consider checking if your company has an HR department or if decisions are made by one person. Sometimes the person doing payroll doesn't fully understand classification rules, and bringing it to HR's attention (framed as a compliance question) might resolve it without drama. But definitely have that documentation ready first, just in case.

One thing I haven't seen mentioned here is checking if your company has any policies or employee handbook that might inadvertently contradict your contractor classification. Many employers slip up by including 1099 workers in employee-only policies or expecting them to follow the same rules as W-2 staff. Also, since you mentioned the other admin has been there 12 years, that's actually a huge red flag for the IRS. Long-term "contractor" relationships, especially for ongoing administrative work, are classic misclassification cases. The IRS specifically looks for situations where someone performs the same role for years as evidence of an employer-employee relationship rather than true independent contracting. You might want to research what happened to other companies in your industry who got caught doing this. Sometimes showing your employer news articles about similar businesses facing penalties can be more persuasive than citing IRS regulations directly. It makes the risk feel more real and immediate. And honestly, given that you're new and they've been misclassifying the other admin for over a decade, this company is probably sitting on a pretty significant tax liability if the IRS ever investigates. That might actually work in your favor if you do decide to have a direct conversation about reclassification.

Lucas, I went through a very similar situation when I purchased my tree service business last year, and I want to emphasize one crucial point that could save you significant headaches: make absolutely sure you get a detailed closing statement that clearly breaks down every component of your total consideration. In my case, I had $18,000 in assumed equipment debt, but there were also some unexpected closing costs and prorated expenses that affected my total purchase price calculation for Form 8594. The closing attorney didn't initially itemize these properly, which caused confusion when my CPA was preparing the form. Here's what I recommend: Request a draft closing statement at least a week before your actual closing date. This gives you time to review all the numbers and ensure that both you and the seller will be reporting the same total consideration amount on your respective Form 8594s. The assumed debt should be clearly listed as part of the total consideration, not buried in footnotes or attachments. Also, don't forget that you'll need to report this same total consideration amount on your first-year tax return when you file Form 8594. Keep copies of all loan assumption agreements, the closing statement, and any appraisals or equipment valuations with your permanent tax records. The IRS typically has three years to audit, but having this documentation organized from day one will give you peace of mind. One last tip: if any of the equipment loans you're assuming have different terms than originally disclosed, make sure these changes are reflected in your purchase agreement amendments. This protects you legally and ensures your tax calculations remain accurate.

Lucas, as someone who just completed a lawn maintenance business acquisition three months ago, I can definitely relate to your Form 8594 confusion! The assumed debt piece was one of the trickiest parts for me too. Here's what I learned: the $27,500 in equipment loans you're assuming gets added to whatever cash you're paying to determine your total consideration. So if you're paying $40,000 cash plus assuming $27,500 in debt, your total consideration for Form 8594 purposes is $67,500. This total amount is what you'll allocate across the different asset classes in Part III of the form. One thing that really helped me was creating a simple breakdown showing: Cash paid + Assumed debt = Total consideration, then keeping that calculation with my Form 8594 for future reference. Also, make sure you get written confirmation of the exact debt balances as of your closing date, since interest accrual can change these amounts daily. The key is that both you and the seller need to report the same total consideration amount on your respective forms, so coordinate with them to ensure you're both using the same figures. Having everything clearly documented in your purchase agreement prevents confusion later. Best of luck with your lawn care business! Getting the tax side sorted out properly from the start will save you headaches down the road.

I think people sometimes misunderstand these reviews. They're not always bad news! • Many reviews are truly random (part of IRS compliance sampling) • Some are triggered by specific items but don't mean you did anything wrong • Reviews without document requests often resolve faster • The IRS actually does finish many reviews earlier than the timeline they quote My review last year finished in 3.5 weeks even though they quoted me 6 weeks. I was surprised when my deposit just showed up!

I'm going through the exact same thing right now! Filed on February 15th and just got the notice yesterday. What's been most frustrating is that the IRS website just says "under review" with no additional details about what specifically they're looking at. From what I've read here and elsewhere, it sounds like the foreign tax credits are probably what flagged your return - they seem to trigger these reviews pretty frequently even when everything is correct. I'm planning for the full 6 weeks but hoping it resolves sooner. Has anyone had luck getting more specific information about what part of their return is being reviewed when they call?

This thread has been incredibly educational! As someone new to running youth sports organizations, I had no idea about the complexities of handling business donations vs. sponsorships. One question I haven't seen addressed: if you're setting up sponsorship tiers for future fundraising, do you need to register anywhere or get any special permits to formally offer advertising/sponsorship services? Or is this something that falls under normal business operations for an LLC? I'm thinking about starting a similar program for our local youth volleyball club, but want to make sure I'm not missing any regulatory requirements. The last thing I want is to accidentally run afoul of any business licensing rules while trying to help kids get to tournaments! Also, huge props to @Lim Wong for asking this question in the first place - the responses here have given me a roadmap for handling our own fundraising challenges. Sometimes the business side of youth sports feels more complicated than the actual coaching!

This has been such a valuable discussion! As someone who helps run a youth soccer league, I can confirm that the advice here is spot-on. We went through a similar learning curve when we first started accepting larger sponsorships. One thing I'd emphasize that hasn't been mentioned much - make sure you're tracking ALL expenses related to the tournament, not just the obvious ones. Things like travel coordination time, administrative costs, even the cost of creating and printing sponsorship materials can be legitimate business deductions that help offset that taxable income. We started using a simple spreadsheet to track every dollar in and out for each tournament/season, and it made tax time so much easier. Our accountant was actually impressed with our record-keeping! Also, don't be afraid to ask other youth sports organizations in your area how they handle sponsorships. Most coaches/organizers are happy to share what they've learned - we're all in this to help kids, after all. The local Little League chapter gave me some great templates when I was starting out. Your sponsor sounds like a wonderful community partner, and those kids are going to have an amazing tournament experience. The fact that you're being so diligent about handling the business side properly shows you really care about doing right by everyone involved - the kids, the sponsor, and your organization's future sustainability.