Thank you for this detailed explanation! I've been struggling with similar transcript codes on my 2023 return. Just to clarify - when you mention that Code 150 shows the "posting date" rather than the received date, does this mean there could be a significant gap between when the IRS actually received my return and when it appears with Code 150 on my transcript? I filed electronically on January 28th but my transcript shows Code 150 with a date of 2/15. Also, regarding the cycle code interpretation - if 0605 means 6th week, Thursday, would that correspond to February 8th, 2024? I'm trying to understand if this aligns with typical processing timeframes or if there might be additional review happening with my return.

Based on my experience reviewing IRS transcripts, your Code 150 with the 2/24 date indicates your return was successfully processed and posted to the Master File on February 24th - this is the official recording date, not when they first received your return. The Cycle 0605 confirms processing occurred during the 6th week of 2024 on Thursday (February 8th). This timeline is completely normal for returns filed during peak season. What you should watch for next is Code 846, which indicates your refund has been approved and scheduled for direct deposit. Keep checking your transcript weekly as additional codes will appear to show the progression through the refund process. The good news is that Code 150 means your return passed initial processing without any obvious red flags that would trigger additional review holds.

As someone who's been through this exact situation, I can confirm what others have said - preparers don't need to keep copies of everything, but YOU definitely need to keep your records organized for potential audits. One thing I learned the hard way: even if your preparer doesn't ask for detailed documentation upfront, having it organized makes the whole process smoother and cheaper. My first year I showed up with a shoebox of receipts and my preparer charged me extra just to sort through everything. Now I keep a simple spreadsheet throughout the year with columns for date, amount, category, and business purpose. Takes 2 minutes when I make a purchase but saves hours during tax season. For mileage, I use a basic app that tracks both distance and business purpose automatically. The key is that while your preparer might not need copies, the IRS absolutely will if you get audited. And trust me, you don't want to be scrambling to recreate records years later when you can barely remember what you had for breakfast yesterday!

Great question! I went through this same stress last year when I started my consulting business. Here's what I learned from both my preparer and an IRS audit (yes, I got audited in my first year - lucky me!): Your tax preparer doesn't need physical copies of all your receipts, but they do need to feel confident that your numbers are reasonable and that you have documentation to back them up. Most will have you sign something saying you have records to support your deductions. The real issue is what happens if YOU get audited. The IRS will want to see actual proof - receipts, bank statements, mileage logs, etc. During my audit, they accepted bank/credit card statements for most expenses as long as I could explain the business purpose. For mileage, they wanted to see a log with dates, destinations, and business reasons. My advice: get organized now, not just for your preparer but for your own protection. Even if you're missing some receipts, having most of your documentation in order will make both the tax prep process and any potential audit much less stressful. And honestly, a good preparer will appreciate the effort and might even charge you less if you come in organized rather than with a pile of loose papers. Don't stress too much about perfect documentation - just do your best to organize what you have and commit to better record-keeping going forward!

This is such a helpful thread! I'm dealing with a similar situation where I had major income fluctuations due to freelance work on top of my regular job. One thing I want to add that might help others: when you're calculating your quarterly withholding amounts for line 1b, make sure you're looking at the actual pay dates, not just when you received the paystubs. Sometimes there's a delay between when taxes are withheld and when the paystub is dated. Also, if you had any state tax withholding, don't accidentally include that in your federal withholding totals for Form 2210 - I almost made that mistake! Only the federal withholding from Box 2 of your W-2s should be used for the penalty calculation. The spreadsheet approach mentioned by NeonNebula is really the way to go. I created one with columns for pay date, federal withholding amount, and then subtotals by quarter. It made the whole process much clearer and I caught a few small errors in my initial calculations.

This has been incredibly helpful! I'm dealing with Form 2210 for the first time and was completely lost on how to handle my withholdings. I had three different jobs this year - two W-2 positions and some 1099 work - so my income was all over the place. Reading through this thread, I now understand that I should use the actual quarterly withholding amounts from my pay stubs rather than dividing by 4, especially since I'm using the annualized income method (Box C). The spreadsheet approach sounds like exactly what I need to organize everything. One quick question though - if I had overlapping jobs where I was getting paychecks from two different employers in the same pay period, do I just add up all the federal withholding from both paychecks for that quarter? Or is there some other consideration I need to think about when multiple employers are involved? Thanks to everyone who contributed to this discussion - you've saved me hours of confusion and probably some penalty money too!

This is such a common dilemma for partnerships! I went through the same thing with my accounting firm partnership last year. One thing that really helped me decide was looking at my expected tax bracket for both this year and next year. Since you mentioned the big invoices won't be paid until January, if you take a distribution now, you'll be paying taxes on it at this year's rates. But if you do the loan route and pay it back in March when those invoices come in, you're essentially just shifting the timing without the immediate tax hit. A few practical considerations from my experience: - The loan documentation doesn't have to be overly complex, but it absolutely has to exist and be followed - We used the current AFR which was pretty reasonable compared to what a bank would charge - Make sure your partnership agreement allows for partner loans (ours required unanimous partner approval) - Keep detailed records of all payments and interest calculations The recordkeeping was honestly the most annoying part, but our CPA said it was worth it because it kept everything clean for tax purposes. Plus, when we did pay it back in the spring, there were no surprises or additional tax complications. Good luck with your decision! The roof repairs can't wait, but at least you have options for handling it tax-efficiently.

Great question about the partnership agreement requirements! In our case, we had to do a formal vote since our operating agreement specifically required unanimous consent for any loans to partners above $10,000. We did it via email with all partners responding with their approval, then our managing partner documented it in our meeting minutes. For the loan documentation, our CPA actually had basic templates that covered the essential elements - principal amount, interest rate (we used the current AFR), repayment schedule, and default provisions. Nothing too fancy, but it hit all the IRS requirements to make sure it would be respected as a legitimate loan rather than a disguised distribution. The key thing our CPA emphasized was making sure the terms were "arm's length" - basically what you'd expect if you were getting a loan from an unrelated third party. That meant reasonable interest rate, defined repayment terms, and actually following through on those terms. One other tip - we set up a separate loan account in our bookkeeping system to track the principal balance and interest payments. Made it much easier come tax time to show everything was handled properly. Our CPA said that clean record-keeping was often what made the difference if the IRS ever questioned whether it was a real loan.

I'm going through this exact same thing right now! Got my CP59 letter last week and I've been losing sleep over it. My return was accepted on February 28th (just a few days before yours) and my transcript still shows the non-filing notice with no due date yet. Reading through everyone's experiences here is actually making me feel a lot better - it sounds like this is way more common than I thought. I was convinced I'd somehow messed up my filing or that the IRS lost my return completely. @Serene Snow - did you end up calling the IRS or just wait it out? I'm torn between wanting to call for peace of mind vs. not wanting to sit on hold for hours just to be told to wait. Also curious if anyone knows roughly how long it typically takes for the transcript to update once you're in this situation? Thanks for posting this - misery loves company and it's reassuring to know I'm not alone in tax purgatory!

I'm dealing with this right now too! Got my CP59 notice yesterday and immediately went into panic mode. My return was accepted on March 5th, so just three days after yours @Serene Snow. After reading through all these responses, I'm feeling much more relieved. It sounds like this is basically a case of the IRS's left hand not knowing what the right hand is doing - their notice system is completely separate from their processing system. A few things I learned from everyone's experiences: 1. The CP59 might actually be for 2022, not 2023 (need to check the tax year on the notice) 2. Even if it IS for your recent filing, it doesn't mean they don't have your return 3. The transcript will eventually update, but it can take 2-4 weeks 4. Calling might give peace of mind but you'll likely just be told to wait I'm going to resist the urge to call and just monitor my transcript for the next few weeks. Thanks everyone for sharing your stories - this community is a lifesaver when the IRS is giving us all heart attacks!