I think people are overthinking this. Just pay yourself a market salary for your role, document how you determined it, and move on. The IRS has bigger fish to fry than reasonable compensation cases unless it's egregiously obvious you're trying to avoid payroll taxes (like $50k salary and $2M distributions). In my experience (15 years as S-corp owner), as long as you're taking a salary that would make sense if you were hiring someone else to do your job, you're fine. The fear around this issue is way overblown.

I have to respectfully disagree with the "don't overthink it" approach. While the IRS may not audit every S-corp, when they do look at reasonable compensation, the penalties can be severe. They can reclassify distributions as wages retroactively, which means you'd owe back payroll taxes PLUS penalties and interest. I've seen this happen to a colleague who thought his $80k salary on $800k in distributions was "reasonable enough." The IRS disagreement cost him over $40k in back taxes and penalties. The documentation piece is crucial - you need more than just "this seems right." You need industry data, job descriptions, time logs, and comparable salary research. At $2.7M in income, you're definitely in territory where the IRS would take notice if your salary seems artificially low. I'd recommend getting a formal compensation study done rather than just winging it. The cost of the study is nothing compared to potential audit exposure at these income levels.

Have you tried checking your transcript on the IRS website instead of relying solely on SBTPG? Sometimes the transcript will show a direct deposit date that's more accurate than the SBTPG portal. You can access it at irs.gov/transcripts and look for code 846 which indicates the refund issue date. Another option is to call SBTPG directly at 800-901-6663 to confirm the account number they have on file matches yours exactly. Sometimes the refund gets rejected due to a mismatch and bounces back to them, starting the process over.

This is such a relatable situation! I went through the exact same anxiety last year waiting for my SBTPG funded status to actually hit my account. Based on what I've learned from experience and this community, here's what I'd suggest: 1. **Timeline expectation**: 24-72 hours is normal, but weekends and holidays don't count as business days 2. **Check your bank**: If it's been 3+ business days, call your bank to see if there's a pending deposit or security hold 3. **Verify account info**: Double-check that your routing and account numbers match exactly what SBTPG has on file 4. **IRS transcript**: Check your IRS transcript online for code 846 to see the actual refund issue date For your medical expenses, I completely understand the urgency. If you're past the 72-hour mark, definitely contact both SBTPG customer service and your bank. Sometimes banks hold larger deposits for verification, especially if it's your first tax refund to that account. The "blood through arteries" analogy is perfect - there really are multiple checkpoints these funds have to pass through! Hang in there, it should resolve soon.

wait so did u file before feb 16? cuz that might explain it

This is actually pretty common during peak filing season! The IRS has different systems for acceptance vs processing. When TaxAct said "approved," they meant your return passed the initial validation checks and was accepted into the IRS queue. But the actual processing (where it shows up in their records) can take 1-3 weeks. The verification letter you received was likely requested by a third party - maybe for a loan application, government benefits, or background check? These are often automatically generated when someone needs proof of your filing status. Since you filed on Feb 12th and the verification was requested on Feb 16th, there just wasn't enough time for your return to fully process yet. I'd definitely call that 800 number to clarify, but don't stress too much. Your return is probably just sitting in their processing queue. The state refund hitting your account is actually a good sign - it means your federal return info was transmitted properly.

Anyone using QuickBooks to handle this farm S-Corp payroll situation? Does it know to generate the correct forms (943 vs 941) for agricultural businesses?

This is a great question that highlights the complexity of farm business taxation. As others have mentioned, Form 943 is indeed the correct choice for your situation since you're performing agricultural work, even though you're organized as an S-Corporation. The key point is that the IRS looks at the nature of the work being performed rather than just the business entity type. Since you and your brother are doing agricultural labor (feeding livestock, planting, harvesting, equipment maintenance), you're considered agricultural employees for employment tax purposes. One thing to keep in mind is that you'll still need to make employment tax deposits on the same schedule as Form 941 filers (monthly or semi-weekly depending on your deposit obligation), but you get the benefit of annual reporting instead of quarterly forms. Make sure to keep good records of your tax liabilities throughout the year since you won't be filing quarterly reports to track them. If you haven't already, I'd recommend confirming this with your accountant or getting a direct answer from the IRS to make sure you're set up correctly from the start.

Check the master list of transcript codes on the IRS website. They explain what each one means

That "verification of non-filing" notice is actually pretty common when there's a processing delay or system glitch. It doesn't necessarily mean your return is lost - sometimes it just means it hasn't been fully processed into their system yet. The January 2022 date suggests this might be related to the massive backlog they had that year. I'd definitely try calling that number even though it's a pain, or you could try the online "Get My Payment" tool to see if there's any update on your refund status. Don't panic yet - this happens more often than you'd think!