My construction company received around $230k in ERC, and we're currently under audit. One thing I learned that might help others - if your business grew during the pandemic compared to 2019, the IRS is automatically flagging those claims for review. We qualified based on supply chain disruptions and project delays due to government restrictions, but the IRS auditor is arguing that because our total annual revenue increased, we couldn't have been significantly impacted regardless of the specific rules.

This is exactly why I've been telling other business owners to be extremely cautious about ERC claims. The program was marketed as "free money" by so many firms, but the reality is that the IRS is now applying much stricter interpretations than what many businesses were told. What's particularly frustrating is that the government created this program during a crisis, encouraged businesses to apply, and now they're essentially penalizing people who relied on professional advice. The shifting interpretations make it feel like the rules are being changed retroactively. For anyone reading this who claimed ERC - document everything about your situation during the pandemic. Keep records of any government orders that affected your business, revenue comparisons, and the specific reasoning your tax preparer used. If you're having second thoughts about your eligibility, the voluntary disclosure program might be worth considering before the IRS contacts you. The difference between proactive disclosure and getting caught in an audit can be tens of thousands of dollars in penalties and interest.

One thing no one's mentioned yet - if you guys are getting married next summer, would it be before or after December 31st? Because your tax filing status is determined by your marital status on the last day of the tax year. If you're getting married before the end of 2025, then you'd be filing as married for that whole year anyway, and this becomes a non-issue since you'd likely file jointly and claim the child together.

Great advice from everyone here! I want to add something important that hasn't been fully addressed - the "support test" calculation can be trickier than it seems at first glance. When determining if your fiancé provides more than 50% of your daughter's support, you need to include ALL sources of support, not just what you and your fiancé provide. This includes things like: - Any child support from your daughter's biological father - Government benefits (SNAP, WIC, Medicaid, etc.) - Support from grandparents or other relatives - Even the fair rental value if your daughter has her own room The IRS has a specific worksheet (Publication 501) that breaks down exactly how to calculate total support. I've seen people get tripped up because they only counted the money they and their partner spent, forgetting about other sources of support that might push the total over the threshold. Also, keep detailed records throughout the year - receipts, bank statements, etc. The IRS can ask for documentation if they audit dependent claims, and "he pays for most things" won't be enough if you can't prove the actual dollar amounts.

Quick question - I'm in the same situation but I already had the lawn equipment before I started renting out part of my house. Can I still claim depreciation on these items even though I purchased them earlier for personal use?

Great question! Yes, you can definitely deduct lawn care expenses for your rental property. Since your tenant has access to the backyard, that portion of your yard maintenance is a legitimate rental expense. Here's what you need to know: **Equipment ($825 total):** These are capital expenses that must be depreciated over time, not deducted all at once. Lawn equipment typically has a 5-year depreciation schedule under MACRS. **Supplies ($300 fertilizer/weed killer):** These are fully deductible in the year purchased - much simpler! **Your labor:** Unfortunately, you can't deduct the value of your own time, but any materials you buy are fair game. **Mixed-use allocation:** Since you live in the main house, you'll need to determine what percentage of the yard maintenance relates to the rental vs. your personal use. The IRS typically accepts square footage calculations (rental space ÷ total property space). **Documentation:** Yes, keep all receipts! You'll report these on Schedule E, and good records are essential if you're ever audited. Pro tip: Consider whether the time you spend on lawn care might be better spent on other income-generating activities. Some landlords find that hiring a service simplifies their taxes and frees up time, even if it costs a bit more upfront.

Did you verify your identity on ID.me? Sometimes that can cause delays if it's not done

Don't panic! I went through the same thing last year. Blank transcripts are super common in the first month after filing. The IRS processing systems update in batches, not real-time. Since you e-filed 3 weeks ago, you're right in that normal window where nothing shows up yet. I'd give it another week or two before getting concerned. The fact that WMR shows "received" is actually a good sign - means your return made it into their system successfully.

Be super careful with any ERC filing right now! The IRS announced last month they're auditing these claims like crazy because of all the fraud. My brother's construction company used one of those "ERC specialists" that advertise everywhere, paid them 25% of the expected refund, and now he's under audit and might have to pay everything back WITH penalties. Make sure whoever helps you is looking at real eligibility, not just trying to get you to file. The rules are complicated - it's not just "did you stay open during the pandemic.

As someone who just went through this process for my small retail store, I'd strongly recommend getting a second opinion before committing to any of those fee structures you mentioned. The 30% contingency fee is definitely excessive, and the $8,000 upfront seems way too high for a 14-employee restaurant. What worked for me was first using a service to verify eligibility before paying anyone big fees. I spent about $200 to get a detailed analysis of whether we actually qualified, which saved me from potentially wasting thousands on a claim that might not hold up. Once I knew we legitimately qualified, I worked with a local CPA who charged a flat $2,800 fee to prepare and file everything. The key is making sure you have solid documentation showing how government orders specifically impacted your restaurant operations. Indoor dining restrictions would likely qualify you under the "partial suspension" test, but you need to document exactly which orders affected you and when. Don't rush into anything - the IRS is being very strict about ERC claims right now, so getting it right the first time is crucial.