Don't forget that even though you had minimal activity, you still need to file Schedule K-1 for yourself as the sole shareholder. The $125 income (minus the $27 expense) will flow through to your personal return. Also check if your state requires a separate S-Corp filing - many do, even if you had minimal or no activity. Some states have minimum franchise taxes for S-Corps regardless of activity level, which can be a nasty surprise if you're not expecting it.

Great questions! I went through this exact same situation two years ago when I first elected S-Corp status for my single-member LLC. The minimal activity part is actually pretty common in the first year. A couple additional things to keep in mind beyond what others have mentioned: 1) Make sure you're comfortable with the ongoing compliance requirements. Even with minimal activity, you'll need to file Form 1120S every year by March 15th (with extensions available). There's also reasonable compensation requirements once you start having significant income. 2) For your $125 bank bonus, double-check if the bank issued you a 1099-MISC or 1099-INT. If they did, make sure the income amount on your return matches exactly what they reported to the IRS to avoid any automated matching notices. 3) Since you mentioned wanting to avoid giving out your SSN to clients - just remember that your S-Corp election doesn't change your LLC's legal structure. You're still an LLC for legal purposes, just taxed as an S-Corp. Some clients might still ask for your SSN if they're not familiar with this distinction. The learning curve is steep the first year, but it gets much easier once you understand the process. Good luck with your filing!

If you actually want to talk to the irs, use a calling service. I used claimyr.com and it was so much better than the literal days of my life I've wasted trying to reach them myself. It only took about 30 mins to get a person on the line who actually was helpful and told me exactly what the issue was with my return and how to fix it.

This verification of non-filing notice can definitely be confusing, especially when you know you filed! A few things to consider: 1. The timing suggests your return might still be in the processing queue when someone (likely a lender, school, or benefit agency) requested verification of your filing status. Since you filed in February and the verification was requested in early March, there could be a processing delay. 2. Check your IRS account online to see if your return shows up as "received" or if there are any processing holds (codes like 570 or 971). 3. Since you mentioned getting acceptance from TurboTax within 24 hours, that's a good sign - but acceptance just means it passed initial validation, not that it's fully processed. 4. The tracking ID format (starting with 10758) might indicate which type of entity requested the verification, but that's not something to worry about. My recommendation: Call the official IRS number (800-829-1040) to verify your return was received and ask about any processing delays. Don't use any numbers from the notice itself - always call the main IRS line. If you can't get through after several attempts, some people have had success with calling services that help navigate the phone system. This is likely just a timing issue rather than anything fraudulent, but it's worth confirming with the IRS directly.

I'm going through the exact same thing right now! Filed Feb 11th, accepted Feb 14th, and I've had that "Action Required" message for almost 3 weeks. It's so maddening that they can't just tell us what they need instead of this vague message followed by waiting weeks for a letter. I finally broke down and checked my transcript yesterday using the IRS website, and it showed some codes that I couldn't decipher. Someone mentioned taxr.ai earlier in this thread so I gave it a try - turns out I have an identity verification flag on my account. At least now I know what's causing the delay instead of just sitting here wondering. The worst part is that the IRS website makes it sound like this review process is quick, but from what everyone is saying here it can take months. Really hoping my letter arrives soon so I can get this sorted out. Hang in there - sounds like most people eventually get their refunds once they complete whatever verification the IRS needs!

I'm dealing with this exact same frustrating situation! Filed on Feb 9th, accepted Feb 12th, and I've been stuck with that vague "Action Required" message for over 3 weeks now. No letter in the mail yet either. What's really annoying is how unhelpful that message is - they basically say "we might need something from you" but give zero specifics about what or when. I've been checking my mailbox religiously every day hoping for some actual information. Based on what everyone here is saying, it sounds like this is unfortunately super common this tax season. I'm planning to check my transcript this weekend to see if I can get any clues about what's causing the hold-up. The waiting is absolutely brutal when you're counting on that money for bills and expenses. Thanks for posting about this - it's oddly comforting to know so many others are in the same boat. Hopefully we all get our answers (and refunds!) soon!

The residential clean energy credit is non-refundable right? So if your tax liability is already zero after other credits, does this even matter? Or am i understanding it wrong?

I just went through this exact same nightmare with Form 5695 last week! The circular reference between the worksheets is absolutely maddening. What finally worked for me was ignoring the instructions temporarily and calculating everything in this order: 1. First, calculate your gross Residential Clean Energy Credit on Form 5695 lines 1-13 without any limitations 2. Use that preliminary amount when you get to the worksheets that ask for it 3. Complete all the limitation calculations 4. Go back and apply the final limitation to your Form 5695 The key insight is that the "amount from Residential Clean Energy Credit" they're asking for in the worksheets is meant to be your preliminary/gross amount, not your final limited amount. The IRS instructions make this sound circular, but it's really an iterative process. I also found it helpful to use scratch paper to track my preliminary vs. final amounts so I didn't get confused about which number to use where. The whole system is poorly designed, but once you understand the sequence it does work out.

I'm in a very similar situation with back taxes from 2019-2021 totaling around $38k that got transferred to CBE Group. One thing that really helped me understand my options was getting a free consultation with a tax attorney through my local bar association's referral service. The attorney explained that while CBE can't directly garnish wages like the IRS can, they will likely try to get you to agree to a payment plan that might be more than you can actually afford. If you can't make those payments, they'll send it back to the IRS who then has all their collection powers available. Given that you've been unemployed for a year, you should definitely look into Currently Not Collectible status before you start working again. The IRS considers your current financial situation, not your future earning potential. If you qualify for CNC status while unemployed, it could buy you time to get back on your feet financially before having to deal with payments or garnishments. Also, don't let CBE pressure you into a payment plan immediately. You have rights and options - take time to understand them all before committing to anything.

I've been dealing with a similar situation with CBE Group for the past 8 months, so I wanted to share what I've learned. First, you're right to be concerned about wage garnishment, but the good news is that CBE cannot directly garnish your wages like the IRS can. They would need to return your case to the IRS first. One thing that really helped me was understanding the timeline. CBE typically works accounts for about 2 years before potentially returning them to the IRS. During that time, they can only offer payment plans - they can't approve offers in compromise, currently not collectible status, or other collection alternatives. Since you've been unemployed for almost a year, I'd strongly recommend applying for Currently Not Collectible status directly with the IRS before you start working. You'll need to complete Form 433-F and provide documentation of your financial hardship. The key is to get this status while your income is still low, because once you start earning again, it becomes much harder to qualify. Also, keep detailed records of all communications with CBE. They're required to follow specific procedures, and if they don't, you can file complaints. Don't let them pressure you into a payment plan you can't sustain - that just sets you up for failure and eventual return to IRS enforcement actions. The most important thing is to stay proactive. Ignoring the situation only makes it worse and limits your options down the road.