Tbh WMR is useless half the time. Your transcript is the only thing that matters

This happened to me too! Don't panic - it's totally normal. The IRS system updates overnight and sometimes removes the amount temporarily while they're processing. Mine disappeared for like 3 days and then came back with the same amount. As long as you still see the progress bars, you're in the system and being processed. Just be patient! 🙂

I'm dealing with the exact same codes right now! Filed in February, got the verification letter in March, sent everything certified mail, and still waiting. It's been 10 weeks and counting. Reading through all these responses is both helpful and frustrating - sounds like this is just the new normal with IRS processing times. The multi-stage explanation from @NebulaKnight really helps understand what's happening behind the scenes. I had no idea there were so many steps between sending docs and seeing updates. Definitely going to try that Taxpayer Advocate tip if I don't see movement in the next couple weeks. @Lorenzo McCormick - hang in there! Sounds like you're still within the "normal" timeframe even though it feels like forever. At least we're all in this together dealing with the same broken system.

I'm going through this exact same situation right now! Filed back in March, got codes 810, 971, and 420 on my transcript, sent verification docs in early April via certified mail, and I'm still waiting 9 weeks later. The worst part is not knowing if they're even working on it or if my paperwork is just sitting in some pile somewhere. Reading through everyone's experiences here is both reassuring and terrifying - reassuring because I'm clearly not alone in this mess, but terrifying because some of you have been waiting even longer than I have! The breakdown of the multi-stage process really helps explain why this takes so ridiculously long, but it doesn't make the waiting any easier when you're counting on that refund. I think I'm going to try calling next week using that taxpayer advocate number someone mentioned, and if that doesn't work maybe look into one of those callback services. At this point I just want to talk to a human being who can tell me my docs didn't get lost in the mail or something. The uncertainty is honestly worse than just knowing I have to wait X more weeks. Stay strong everyone - sounds like most people do eventually get their refunds, it just takes way longer than it should!

Great question! I went through this same decision process last year. The 1099 difference is real - as an S-Corp, you won't receive 1099s from most clients (except for certain payments like legal fees). This actually simplified my bookkeeping since I don't have to reconcile mismatched 1099s anymore. Regarding IRS verification - don't worry too much about this. The IRS has sophisticated data matching systems that go way beyond just 1099s. They can cross-reference your reported income with bank deposits, industry benchmarks, and previous years' patterns. Plus, S-Corps have additional oversight through the annual 1120-S filing requirements. One thing to consider: the real audit protection comes from accurate record-keeping and reasonable salary vs. distribution splits. The IRS pays close attention to S-Corp owners who try to minimize their W-2 wages too aggressively to avoid payroll taxes. Make sure you're paying yourself a reasonable salary for your industry and role. The tax savings from avoiding self-employment taxes on distributions often outweigh the slightly different reporting structure, especially as your income grows. Just budget for the additional compliance costs (payroll, corporate filings, etc.).

This is a really common concern when considering the S-Corp election! You're absolutely right that S-Corporations don't receive 1099s from most clients, while LLCs (taxed as partnerships or sole proprietorships) do. This difference exists because the IRS treats corporations as having more sophisticated reporting systems and oversight. Here's what I've learned about IRS verification methods for S-Corps: They use bank deposit analysis, industry profit margin comparisons, year-over-year income pattern analysis, and cross-referencing with your suppliers' records. The 1120-S form you'll file annually also provides detailed income reporting that the IRS can scrutinize. One important point - while you won't get 1099s as an S-Corp, you'll actually face MORE scrutiny in other areas, particularly around the reasonable salary requirement. The IRS closely watches S-Corp owners who try to minimize their W-2 wages to avoid payroll taxes. Make sure you pay yourself a market-rate salary for your role. From a practical standpoint, many business owners find the lack of 1099s actually simplifies things - no more reconciling mismatched or incorrect forms. Just maintain excellent records and report everything accurately. The potential self-employment tax savings often make the trade-off worthwhile, especially as your income grows.

Thanks for explaining it so clearly! Been driving myself crazy refreshing WMR every hour

This is exactly what people need to understand! I went through this same confusion last year when Feb 15th fell on a weekend. The IRS literally cannot process PATH Act returns until after the holiday - it's federal law, not just their choice. Everyone freaking out about "why hasn't my transcript updated" when the system is legally required to wait. Save your sanity and don't even bother checking until Wednesday next week at the earliest.

Has anyone used the official IRS payment plan option for CP2000? Mine is asking for $5k that I definitely don't have right now.

I went through something very similar with a second CP2000 notice last year. The key thing that helped me was getting organized and methodical about it rather than panicking (easier said than done, I know!). Since they already reduced your amount from $9,500 to $3,400, that's actually a good sign - it means they did process your first response and agreed with most of your position. For the remaining discrepancy, definitely focus on that side gig income since that's often where these issues arise. Make sure you have copies of ALL 1099s that were issued for your side work, including any corrected versions that might have been sent after you filed. Sometimes businesses file corrections with the IRS but don't always send the corrected forms to taxpayers, which creates these mismatches. I'd also recommend keeping detailed records of exactly what you send this time - certified mail with tracking, copies of everything, etc. Don't assume they still have your previous documentation on file. The IRS processes are often siloed, so treating this as a fresh response with complete documentation is your safest bet. Three weeks is definitely enough time if you stay focused and organized about gathering your paperwork. You've got this!