According to Internal Revenue Manual section 25.25.6, the IRS is required to resolve all identity verification issues before processing a return. Per IRS Publication 5027, taxpayers should respond to all notices separately using the specific case numbers provided. You might consider contacting the Taxpayer Advocate Service at 877-777-4778 if you encounter issues with the verification process, as they can sometimes help resolve these duplicate verification scenarios more efficiently than standard IRS channels.

Just went through this exact scenario last month! I got verification letters for both my maiden name (Garcia) and married name (Thompson). Initially panicked thinking it was some kind of fraud, but after reading through the IRS instructions carefully, I realized they were both legitimate. Here's what I learned: • Each letter has a unique case number - treat them as separate requests • The online verification portal handles each case independently • I completed both verifications within the same week and got confirmation numbers for each • My refund processed normally about 3 weeks later The whole process took maybe 20 minutes total for both verifications. Way less stressful than I thought it would be once I understood what was happening. The IRS systems just aren't sophisticated enough to automatically link name changes, so they err on the side of caution and verify both identities separately.

Don't forget about the business use requirement! For Section 179 and bonus depreciation, the asset must be used more than 50% for business. You mentioned 100% business use, so you're good, but make sure you keep detailed records proving that. If the IRS audits you and finds personal use, they can disallow your deductions. Also, have you calculated the actual dollar difference between the two depreciation options? With bonus depreciation dropping from 80% in 2024 to 60% in 2025, there could be a significant advantage to placing it in service this year if possible.

This is a complex situation that really highlights why timing matters so much with tax planning! Based on what everyone has shared, it sounds like you have a few key decisions to make: 1. **Payment timing vs. "placed in service" timing** - As others mentioned, what really matters is when you place the RV in service (available for business use), not necessarily when you pay for it. If you can purchase and list it in December 2024, you could potentially benefit from the higher 80% bonus depreciation rate. 2. **Consider your overall tax situation** - Since you mentioned having a day job, you'll want to think about whether taking a large depreciation deduction in 2024 actually benefits you tax-wise, or if spreading it out might be better. 3. **Don't forget about the recapture risk** - @Sophia Clark raised an excellent point about the 5-year recapture period. If there's any chance you might exit this business or sell the RV within 5 years, regular MACRS depreciation could be safer than the aggressive front-loaded options. Given that you need to decide quickly and haven't found a CPA yet, I'd suggest either using one of the tools mentioned (taxr.ai for analysis or Claimyr to speak directly with the IRS) or at minimum, run some quick calculations on the actual dollar differences between your options. The cash flow benefit of splitting payments might outweigh the tax benefits, especially if you're not certain about the long-term viability of the rental business. Sometimes the bird in the hand (better cash flow) is worth more than the potential tax savings!

Question - does anyone know if providing snacks/drinks in the office counts under this exception? We spend about $500/month on office snacks and coffee. Is that considered employee recreation under §274(e)(4) or something else?

Great thread everyone! As someone who's dealt with this exact issue, I wanted to add that timing can also matter for these deductions. The IRS looks at whether the event was held during or reasonably close to the business year you're claiming the deduction. Also, one thing I haven't seen mentioned is the "all employees" requirement. Under §274(e)(4), the recreational activity needs to be available to employees generally - you can't just treat executives or a select group and claim the full deduction. If you're doing tiered events (like a nice dinner for managers and pizza for everyone else), that could complicate your deduction. For your specific activities @CosmicCommander, make sure your team dinners aren't too frequent or lavish, as the IRS might view regular expensive meals as compensation rather than recreation. The escape room and company picnic sound perfect for the exception though!

Has anyone used the IRS Direct Pay system recently? Last time I tried it was super buggy and kept giving me errors when I entered my bank info.

Just to add some clarity on the payment methods - you're absolutely right that you can split your payment multiple ways! I did exactly this last year with a $6,200 tax bill. I used two different credit cards ($2,000 each through different processors to stay under the limit per processor), then paid the remaining $2,200 via Direct Pay from my checking account. The key things to remember: 1) Each payment processor has its own 2-card limit, so you can technically use up to 6 credit cards if you go through all three processors, 2) Direct Pay/bank transfers have no fees, and 3) You can spread the payments out over time as long as everything is received by the due date. One tip - I spaced my payments about 3-4 days apart just to make sure each one processed cleanly in their system. All showed up correctly on my account transcript. The credit card processing fees (around 1.87-2.5% depending on the processor) did eat into my rewards a bit, but it was still worth it for the cash flow management and keeping my individual card balances reasonable.

Great question about the 6-month loan! Just to add a practical tip - when you're looking up the short-term AFR for your loan month, make sure you're using the correct compounding frequency. The IRS publishes rates for annual, semi-annual, quarterly, and monthly compounding. For a 6-month loan, you'll typically want to use either the semi-annual or quarterly compounding rate depending on how you structure the payments. If your sister is making one payment at the end of 6 months, semi-annual compounding would be appropriate. If she's making quarterly payments, use the quarterly rate. Also, don't forget to keep records of the actual payments received. The IRS will want to see that the loan terms were actually followed if they ever question whether this was a genuine loan versus a gift. Good luck with everything!

For a 6-month family loan of $65,000, you'll definitely need to use the short-term AFR table since it covers loans with terms of 3 years or less. The key thing to remember is that you must use the AFR from the month when the money actually changes hands, not when you sign any paperwork. I'd strongly recommend getting a written loan agreement in place that includes the specific AFR rate you're charging, the repayment schedule, and all other terms. This documentation is crucial if the IRS ever questions whether this is a legitimate loan versus a gift. Even though $65,000 might seem like a family matter, the IRS takes these transactions seriously. One thing that often trips people up is the imputed interest rule - if you charge below the minimum AFR rate, the IRS will still treat you as if you received that interest income for tax purposes, even if you didn't actually collect it. So you might as well charge the proper rate and actually collect the interest rather than having phantom income on your tax return. Also, make sure your sister understands that depending on what she uses the loan for (like medical expenses), she might be able to deduct the interest she pays you, but you'll definitely need to report any interest you receive as income on your tax return.