Don't forget about state tax implications too! I went through something similar in California and while I was fixing the federal issues, I completely missed that I also needed to address the state filings. Ended up with a whole second headache. Make sure whatever solution you choose, you're addressing both federal AND state requirements. Each state has different rules about conforming to federal S-corp elections.

Make sure to get a new CPA! I had a similar situation where my accountant messed up my S-corp election. I went through 3 different accountants before finding someone who actually knew how to handle the correction properly. Look for someone who specifically has experience with entity election corrections and IRS abatement requests. A good CPA will know exactly what documentation to prepare and what procedures to follow for your specific situation.

Just FYI - if you're a frequent gambler, you should keep a gambling diary or log for ALL your gambling activities (wins AND losses). Document dates, locations, type of gambling, amounts, witnesses if possible. The IRS allows you to deduct losses up to the amount of your winnings, but only if you itemize deductions AND have proof of those losses. Without documentation, you can't claim the losses but still have to report all the winnings.

One thing nobody mentioned - even if you get a W-2G with taxes already withheld, the amount withheld is usually only 24% (federal backup withholding rate). If you're in a higher tax bracket, you might still owe more when you file! Had this happen to me last year with a $15k slot win. Was shocked when I still owed another $1,700 at tax time even though they'd already withheld like $3,600!

For what it's worth, I've been filing my own 5500-EZ for my solo 401k for the past 3 years. It was intimidating at first, but it's actually not that complicated if your situation is straightforward. The key things: 1. If your plan assets are under $250k at the end of the year, you might be exempt from filing 2. Make sure you know your plan number and EIN 3. The instructions on the IRS website are actually decent once you read through them carefully 4. File by July 31 for calendar-year plans I spend maybe an hour each year on this now. Just my experience, but wanted to offer a DIY perspective!

Your CPA is being honest about their limitations. My previous accountant tried to help with my Form 5500 despite limited experience and completely messed it up. Cost me $5,200 in penalties that took months to get abated!!! Consider calling Schwab directly - since they're your plan provider, they might have resources or recommended partners who specialize in these filings. Many providers have relationships with TPAs who can handle this for reasonable fees.

I'm currently going through this exact same situation! Filed my return in early April and got hit with the ID verification requirement about 3 weeks later. Like you, absolutely nothing changed from previous years - same employer, same deductions, everything identical. It's incredibly frustrating to be randomly selected when you've done everything correctly. I completed the online verification through ID.me immediately after getting the letter, and I'm now at about 4 weeks post-verification with no updates. The "Where's My Refund" tool is completely useless - it just keeps saying "processing" with no timeline. I've been checking my transcript weekly and finally saw a 570 code appear, which from reading the comments here seems to indicate they're working on it. The waiting is absolutely brutal, especially when you're counting on that money for bills and expenses. It's wild how inconsistent the processing times are - some people get their refunds in 2 weeks while others wait 3+ months. Really hoping we both hear something soon because this whole process has been way more stressful than it should be!

I'm going through this exact same nightmare right now! Filed in early April, got flagged for ID verification in May (literally nothing changed from last year - same job, same everything), and I'm now at 8 weeks post-verification with still no refund. The inconsistency is absolutely maddening - I've seen people get their money in 10 days while others wait months for the exact same process. I finally broke down and used one of those services mentioned here to actually get through to an IRS agent, and they told me my verification was complete but there was some kind of secondary review happening that they couldn't give me a timeline for. The "Where's My Refund" tool has been stuck on "processing" this entire time, completely useless. I've been checking my transcript religiously and have seen the 570 code for weeks now but no 571 yet. Really hoping something breaks loose soon because I desperately need this money for some major expenses that I've been putting off. This whole system feels designed to frustrate people into giving up on their refunds.

This is such a common issue with Airbnb hosts! I went through the same confusion last year. Here's what I learned after consulting with my CPA: You definitely need to report the full gross amount from your 1099-K on your Schedule C - this is what the IRS will be expecting to see since they receive a copy of that form from Airbnb. The key is then deducting all those Airbnb fees as legitimate business expenses. Look for these line items on Schedule C: - Line 10 for commissions and fees (this covers Airbnb's service fees) - Line 27a for other expenses (you can itemize things like payment processing fees) Also don't forget about other deductible expenses like cleaning supplies, repairs, utilities for the rental space, and depreciation on furniture/appliances used exclusively for the rental. I found it helpful to download all my transaction history from Airbnb for the year and create a simple spreadsheet tracking gross bookings vs. net deposits. This gives you a clear paper trail in case of any IRS questions later. The bottom line is your net rental income should end up being the same whether you report gross and deduct fees, or just report net - but matching the 1099-K is important for avoiding any red flags.

This thread has been incredibly helpful! I'm in my second year of Airbnb hosting and just received my first 1099-K this year since my earnings crossed the $600 threshold. One thing I'm still confused about - if I use the standard mileage deduction for trips to my rental property for maintenance, cleaning, or guest issues, do I need to keep a detailed log of each trip? And can I deduct mileage for trips to buy supplies like toilet paper, towels, or cleaning products specifically for the rental? Also, for those who mentioned getting annual summaries from Airbnb - is there a specific place in the host dashboard where this is located? I've been digging around but can't seem to find anything that gives me a clean year-end breakdown that matches the 1099-K format. Thanks to everyone who shared their experiences with the various tools and services - definitely going to look into some of these options to make next year's filing easier!