I feel your frustration! This exact thing happened to me two years ago when my daughter's daycare suddenly closed without notice. Here are a few strategies that worked for me: First, dig through ALL your paperwork - enrollment forms, parent handbooks, even old newsletters. The EIN is sometimes buried in fine print or footer text that's easy to miss. Second, contact your state's Department of Human Services or whoever handles childcare licensing in your area. They maintain records of all licensed facilities and their tax information. Even for closed businesses, they often still have this data on file. Third, try reaching out to other parents from the daycare through social media or mutual connections. Someone might have the EIN from previous tax filings or still have documentation you don't. If all else fails, you can actually file Form 2441 with "APPLIED FOR" written in the EIN field, but attach a detailed statement explaining your attempts to obtain the number and that the business has closed. The IRS has procedures for exactly this situation since it happens more often than you'd think. Don't panic about missing the credit - you have options! The key is documenting your good faith efforts to get the information.

This is such a frustrating situation, but you're definitely not alone! I went through something very similar when my son's preschool abruptly closed last year. Here's what ended up working for me: Start by checking every single piece of paper they ever gave you - enrollment packets, parent contracts, even old flyers or newsletters. I found my EIN buried in tiny print at the bottom of page 2 of the enrollment agreement I almost threw away. If that doesn't work, contact your state's childcare licensing division. They're required to have EINs on file for all licensed facilities, even closed ones. When I called, they were actually very helpful once I explained I needed it for tax purposes. You can also try searching your state's Secretary of State business database online using their exact legal business name (which might be different from what they called themselves day-to-day). As an absolute last resort, you can file Form 2441 with "APPLIED FOR" in the EIN field and attach a statement explaining the business closed and your attempts to get the information. The IRS has procedures for this exact scenario. Don't stress too much - you won't lose your credit over this! The key is documenting that you made reasonable efforts to find the EIN. Good luck!

Great discussion everyone! I want to add something important that I learned from my CPA about the acquisition debt vs home equity debt distinction that could affect your primary residence deduction. The $750K limit applies specifically to "acquisition debt" - loans used to buy, build, or substantially improve your home. If you later refinance and take cash out for other purposes (like funding your rental property purchase), that portion above your original acquisition debt is considered home equity debt and isn't deductible for personal use. So if you originally had a $600K mortgage on your primary residence and later cash-out refinanced to $750K to help buy your rental property, only the first $600K of interest would be deductible as qualified residence interest. The remaining $150K portion would be considered home equity debt. However, if you used that $150K specifically to acquire or improve the rental property, you might be able to deduct that interest as a rental property expense on Schedule E instead. The key is tracing where the loan proceeds actually went - this is called the "debt tracing rules" and requires careful documentation. Just wanted to mention this since many people don't realize that not all mortgage interest on a primary residence automatically qualifies for the personal deduction, especially with cash-out refinances.

This has been such an informative thread! As someone who's been considering getting into rental property investing, I'm realizing there are way more tax implications than I initially thought about. The distinction between acquisition debt and home equity debt that @Natasha Volkova mentioned is particularly eye-opening. I had always assumed that as long as you're under the $750K limit, all mortgage interest on your primary residence would be deductible - never considered how cash-out refinancing could complicate things. Also really appreciate all the practical tips about record keeping, expense timing, and the passive activity loss rules. It sounds like rental property ownership requires much more detailed documentation and tax planning than I anticipated. The depreciation aspect alone seems like it could be substantial over time. One question for the group - for someone just starting to research rental property investing, would you recommend getting a tax professional involved from the very beginning (even before purchasing), or is it something you can learn as you go and bring in professional help later? Given all the complexities discussed here, I'm leaning toward getting expert guidance upfront to avoid costly mistakes.

I went through the CP74 process about 8 months ago and wanted to share some practical tips that helped me navigate it smoothly: **Documentation Strategy:** - Send exactly what they ask for, nothing more, nothing less - Make clear copies (not originals) unless specifically requested - Include a simple cover letter listing each document you're sending - Number your pages and reference the CP74 notice number **Tracking & Follow-up:** - Use certified mail with return receipt (around $7 but worth the peace of mind) - Keep copies of everything you send - Mark your calendar for 30 days out to follow up if you haven't heard anything **Timeline Reality Check:** My actual timeline was: Sent docs March 15 → IRS acknowledged receipt April 8 → Verification complete May 22 → Refund issued June 3 → Money in account June 8. Total: 12 weeks from sending documents to receiving refund. The key is patience and not over-communicating with the IRS during the process. Let them work through their system unless you hit the 90-day mark without any communication. Good luck with your case!

I'm currently dealing with a CP74 notice myself and this thread has been incredibly informative! I received mine about 10 days ago and have been gathering all my documentation. Based on everyone's experiences here, it sounds like I should expect around 3 months from submission to refund, which is longer than I hoped but at least now I can plan accordingly. One thing I haven't seen mentioned yet - has anyone had experience with the IRS requesting additional documentation after the initial CP74 response? I'm wondering if it's common for them to come back with follow-up requests, or if responding thoroughly the first time usually resolves the verification. Also, for those who mentioned calling the IRS, what's the best time of day to actually get through? I've tried calling the number on my notice a few times but just get the busy signal. Really appreciate everyone sharing their timelines and practical tips - this is exactly the kind of real-world guidance that's so hard to find elsewhere!

One thing nobody mentioned - if you're going to be doing business under a different name than your personal name (like "John's Consulting" instead of just "John Smith"), you'll probably want to get an EIN even though it's not strictly required for a single-member LLC. Makes things way easier for banking and keeping business/personal separate.

Great question about multiple LLCs! I went through this exact situation last year with my three single-member LLCs. Here's what I learned: For tax ID numbers, you have flexibility - you can use your SSN or get separate EINs for each LLC. I chose to get EINs for all mine because it made banking much easier and keeps everything separated. You can apply for EINs online through the IRS website for free. Yes, you'll need separate Schedule Cs for your consulting and online store LLCs since they're active businesses. However, your rental property LLC should actually be reported on Schedule E (Supplemental Income and Loss), not Schedule C, since rental activities are treated as passive income rather than active business income. One tip: keep meticulous records for each LLC separately from day one. Use separate bank accounts, credit cards, and accounting systems for each business. This makes tax time so much easier and helps maintain the liability protection that LLCs provide. Also consider whether any of your LLCs might benefit from an S-Corp election if they generate substantial income - it can save on self-employment taxes. The IRS doesn't have issues with multiple legitimate businesses, so don't worry about that. Just make sure each one is truly operated as a separate business with the intent to make a profit.

W-2s are automatically verified by employers. 1099s require manual review most times. its just how the system works unfortunately

I feel your pain! Same thing happened to me last year - had W-2 plus some freelance 1099-MISC income and it took forever compared to my previous years with just W-2s. The IRS seems to flag anything with self-employment income for extra review. Have you checked your transcript lately to see if there's any movement? Sometimes they'll update the processing date even if the refund tool still says "processing.