Have you checked if the letter mentions any specific tax forms or income sources that might be in question? It's like trying to solve a mystery without all the clues if you don't know exactly what they're questioning. Sometimes these notices are triggered by third-party reporting that doesn't match what you filed.

I went through something similar about 6 months ago. The key thing that helped me was looking at the notice date on the letter itself versus when I received it. In my case, there was almost a 10-day gap between when the IRS says they sent it and when it actually arrived at my mailbox. During that time, I was checking my online account daily and getting increasingly worried. What really put my mind at ease was cross-referencing the specific tax year and amount mentioned in the letter with my own records. The IRS letter referenced a W-2 from an employer that I had completely forgotten about (a small freelance gig that issued a 1099 instead of what I expected). One tip: if you still have your tax software or copies of what you filed, compare line by line with what the letter is questioning. Sometimes it's as simple as a typo in a Social Security number or a form that got lost in the mail to the IRS. Don't panic yet - these discrepancies get resolved more often than not once you can actually talk to someone there.

I went through something very similar last year - working temporarily in one state while maintaining residency in another is definitely confusing at first, but once you understand the basic principles it becomes much clearer. The key thing to understand is that for tax purposes, you have two different concepts: your "domicile" (legal residence) and where you physically earn income. Your domicile appears to still be Arizona since that's where your driver's license, voter registration, and permanent address are located. The fact that you're staying in temporary accommodations like hotels and Airbnbs while working doesn't establish Colorado residency. Here's what you'll likely need to do: **Arizona**: File as a resident and report ALL your income, including what you earned in Colorado. As an Arizona resident, they want to tax your worldwide income. **Colorado**: File as a nonresident and report ONLY the income you earned while physically working in Colorado. The good news is that Arizona will give you a credit for taxes paid to Colorado (you'll use Form 309 for this), so you won't be double-taxed on the same income. You'll essentially end up paying the higher of the two states' tax rates. A few practical tips from my experience: - Keep detailed records of your work dates in Colorado - Double-check that your employer is withholding enough Colorado tax (they have a flat 4.55% rate) - Consider making estimated payments if the withholding seems insufficient Most tax software can handle multi-state returns, but given your unique situation with all the traveling, you might want to consult with a tax professional just to make sure everything is handled correctly. Better safe than sorry!

This is a really common situation for people working temporarily in different states! Based on your description, you'll need to file in both Arizona and Colorado, but it's not as complicated as it might seem. Since your driver's license, voter registration, and mail forwarding are all still in Arizona, that remains your tax domicile (legal residence). The fact that you're staying in temporary accommodations while working in Colorado doesn't change this. Here's what you'll need to do: **Arizona**: File as a resident reporting ALL your income, including what you earned in Colorado. Arizona taxes residents on worldwide income. **Colorado**: File as a nonresident reporting ONLY the income earned while physically working in Colorado. Arizona will give you a credit for taxes paid to Colorado (using Form 140), so you won't be double-taxed. You'll essentially pay the higher of the two states' tax rates on that Colorado income. A couple of important things to check: - Make sure your employer is withholding enough Colorado tax (4.55% flat rate) - Keep records of your work start date and any days you might work remotely from Arizona - Consider adjusting your W-4 if withholding seems insufficient Most tax software handles multi-state returns well these days. The key is understanding that temporary work in another state doesn't automatically make you a resident there for tax purposes - your legal ties and intentions matter more than just physical presence.

The timing of your sale creates a unique issue. If you sold mid-year 2024 but the transaction completed in 2025, there's a possibility that your income allocation on the K1 isn't properly pro-rated for the period you actually owned shares. S Corps are required to allocate income based on per-share, per-day calculations when ownership changes mid-year. Did your K1 reflect owning shares for the entire year or just the portion you were an actual owner?

This is exactly the kind of nightmare scenario that makes S Corp ownership so tricky during transitions. The frustration you're feeling is completely understandable - paying six figures in taxes on a business you no longer own feels fundamentally unfair. Based on what others have shared here, it sounds like there are several potential issues to investigate: whether your K1 properly reflects only the period you owned shares (not the full year), whether your sale agreement has tax protection clauses you can invoke, and whether the company calculated the per-share, per-day allocation correctly. I'd recommend starting with a careful review of your sale agreement for any tax-related provisions, then verifying that your K1 income allocation matches only your actual ownership period. If those don't resolve it, having a conversation with your former partners about the cash flow burden this creates might lead to a voluntary solution - many business owners don't realize this issue exists until it happens. The good news is that several people here have found ways to address similar situations, whether through contractual remedies, corrected K1s, or direct negotiations with former partners. Don't give up - there are likely options available to reduce this burden significantly.

I'm going through this exact same situation right now! My transcript updated with the 846 code on Thursday, and I've been refreshing SBTPG every few hours since then. Still showing "unfunded" as of this morning, but based on what everyone's saying here, I should see it update by tomorrow hopefully. The TurboTax advance rejection really threw me off too - I triple-checked everything and can't find any issues with my return either. It's reassuring to hear that their system might just be overly cautious this year. Thanks for asking this question because all these responses are super helpful for understanding the timeline!

Hey, I've been dealing with this timing question for years since I'm also in gig work and need to plan around refund timing. From my experience, SBTPG typically updates within 1-2 business days after your transcript shows the 846 code, but I've noticed it can be faster during peak season when they're processing high volumes. Regarding the TurboTax advance rejection - don't stress too much about it. Their algorithm has gotten really strict lately, especially for gig workers. They flag things like income fluctuations, certain deductions, or even just filing patterns that seem "different" from previous years. I got rejected last year even though my return was perfectly fine and processed normally. One tip that's helped me: set up transcript monitoring through the IRS website rather than constantly checking SBTPG. Once you see that 846 code with your refund amount, you'll know SBTPG should update soon after. Also, make sure you factor in SBTPG's processing fees when calculating your expected deposit amount - they can be higher than you expect, especially if you had any additional services through TurboTax.

I just wanted to jump in and say this thread has been incredibly helpful! I'm also in healthcare (work as a traveling radiology tech) and have been dreading the day I might get one of these mysterious IRS letters. Reading through everyone's experiences, it's clear that certified IRS mail for travel healthcare workers is pretty common and usually relates to our complex multi-state filing situations. The pattern I'm seeing is: certified mail = ensuring delivery of important info, not necessarily bad news, especially when your account balance is zero like yours. What really stands out to me is how many people mentioned identity verification letters (like the CP75A that @bef52cdd6657 mentioned). Given that you move between states every 13 weeks, it makes total sense that their automated systems might flag your filing pattern for routine verification. The advice about having your sister check the envelope format first is spot-on - better to rule out scams before stressing about contents. But honestly, with your account showing zero balance and the IRS rep confirming nothing pending, this is almost certainly just paperwork related to your travel work pattern. Hope it turns out to be as routine as everyone else's experiences! Keep us posted on what it actually was - would be helpful for other travel healthcare workers who might face similar situations.

This entire thread has been incredibly educational! As someone who works in tax resolution, I see this exact scenario with travel healthcare workers constantly. The multi-state income reporting pattern you have creates automatic flags in IRS systems, which typically results in routine verification letters. What everyone has said about certified mail is absolutely correct - it's about delivery confirmation, not severity of the issue. The IRS sends CP75A notices, identity verification letters (5071C), and wage verification requests via certified mail simply because they need proof you received the information. Given that your account balance is zero and the phone representative couldn't find pending issues, this is almost certainly routine verification. The timing disconnect others mentioned is spot-on too - different IRS departments generate correspondence that doesn't always sync immediately with customer service systems. One additional tip for travel healthcare workers: keep detailed records of your assignments, including dates and states worked. When you do get verification letters (which you probably will again), having this documentation readily available makes responses much quicker. You're handling this perfectly by having your sister verify legitimacy first, then photograph the contents. Most of these letters can be responded to online or by mail from anywhere, so your assignment shouldn't be interrupted. Try to relax - this is just part of the territory for our complex filing situations!