Processing usually means theres nothing wrong, just waiting in line. But check your transcript for any codes that start with 570 or 971

This whole system is broken fr fr 🤡 Been processing since February too

One more thing on this topic - capital loss carryovers can potentially be used on back-to-back separate and joint returns. Like if you filed as single with carryover losses, then got married, you CAN bring those losses to your joint return. But what's weird is if you file jointly with losses, then get divorced, each spouse gets half the carryover. My ex and I had about $18k in carryovers when we split, and we each took $9k to our separate returns.

For the divorce question about splitting capital loss carryovers - yes, this is covered in IRS Publication 504 (Divorced or Separated Individuals). When spouses who filed jointly get divorced, any unused capital loss carryovers from the joint returns are generally allocated 50/50 between the former spouses on their subsequent separate returns, unless they agree to a different allocation in their divorce decree. However, if one spouse can demonstrate they were responsible for a larger portion of the losses (like if they managed all the investments that generated the losses), they might be able to claim a larger share. But absent specific documentation or agreement, the IRS default is 50/50 split. The key thing is to make sure this gets addressed in your divorce settlement so there's no confusion later when you're both trying to claim the carryovers on separate returns.

The IRS is such a joke fr fr... They expect us to pay on time but take 10 years to send refunds 🤡

Have you tried checking your account transcript instead of just the return transcript? Sometimes the account transcript shows processing activity even when the return transcript is blank. Also, if you filed in February and verified ID in March, you're definitely within the timeframe where it could still be processing normally - the IRS is still working through returns from that period. Don't panic yet!

One thing nobody mentioned - if you're due a refund for those years, you only have 3 years from the original due date to claim it. So for 2021, you have until April 2025 (since it was due April 2022). After that, you can still file but kiss any potential refund goodbye. If you owe money though, there's no time limit for the IRS to collect, and penalties and interest keep building. So definitely prioritize filing those past returns ASAP.

Hey Liam! I completely understand your stress about this situation - I was in a very similar spot about two years ago when I realized I hadn't filed for 2019 and 2020, and one of my employers had literally disappeared. Here's what worked for me: First, definitely go the IRS transcript route that GalacticGuru mentioned - it's the most reliable way to get your exact wage information. But if you're having trouble with the online verification (like many people do), I'd recommend calling that transcript line at 800-908-9946 early in the morning, around 7 AM. The wait times are much shorter then. While you're waiting for those transcripts, start gathering whatever you DO have - bank statements showing direct deposits, any old pay stubs, even screenshots of your online banking if that's all you've got. The IRS really does prefer that you file with your best available information rather than not file at all. One thing that helped calm my nerves: the IRS is generally pretty reasonable when you're making a good faith effort to comply and file your returns. The scary penalties people talk about are usually for people who just ignore their obligations completely. You're actively trying to fix this, which puts you in a much better category. Also, don't forget to look into penalty abatement options once you get everything filed. If you have a reasonable cause (like unresponsive employers), the IRS might waive some of the penalties. You've got this!

Based on what everyone's shared here, it sounds like the key is really treating this as a legitimate business from day one. I'd recommend starting with a solid business plan that shows your intent to expand beyond just family rentals - maybe outline how you'll advertise on platforms like Turo, Facebook Marketplace, or even local classified ads within the first 6 months. One thing I haven't seen mentioned is that you'll want to check your state's requirements for car rental businesses too. Some states require special licenses or permits for vehicle rental operations, even small ones. Also, make sure your auto insurance covers commercial rental activity - most personal policies don't, and you could be looking at serious liability issues if something happens during a rental. The documentation piece that Mohammad mentioned about his brother's audit is crucial. I'd suggest keeping a detailed log of every inquiry, rental, and business expense from the very beginning. Even if someone calls asking about rates but doesn't rent, document it. This shows you're actively trying to build a customer base beyond family members. For the Section 179 deduction, remember that's only available if the vehicle is used more than 50% for business purposes. With just monthly rentals to your parents, you might not hit that threshold, so regular depreciation might be your only option initially.

One thing I'd add to all this great advice is to make sure you understand the hobby loss rules (Section 183). The IRS has a "3 out of 5 years" test where if your business doesn't show a profit in at least 3 out of 5 consecutive years, they might reclassify it as a hobby and disallow your business deductions. This is especially important for a single-car rental business with limited customers. You need to show that you're genuinely trying to make money, not just offsetting the costs of owning a second car. Keep detailed records of your marketing efforts, rental inquiries (even the ones that don't convert), and any steps you take to expand the business. Also, regarding the $24,000 car purchase - if you do go the Section 179 route, there are annual limits on the deduction ($1,160,000 for 2023, but with phase-out rules). For luxury vehicles there are also additional restrictions, though your price range probably won't trigger those. I'd strongly recommend consulting with a tax professional before making the purchase, especially given the family rental aspect. A few hundred dollars in professional advice upfront could save you thousands if you get audited later.