Why when I log in to my where is my refund it says topic 151 but on my transcript it says code 766 ??

Tax Topic 151 can be confusing, but it generally means your refund is being held for review or offset. This could be due to several reasons: unpaid debts (student loans, child support, back taxes), identity verification issues, or the IRS needing additional documentation to verify your claims (like dependents or credits). Even if you don't think you owe anything, there might be old debts or issues from previous years. I'd recommend calling the IRS directly at 1-800-829-1040 to get specific details about your situation, or check your account transcript online which will show any holds or codes. The wait times can be long, but it's the best way to get clarity on why your refund is delayed.

For real tho, dont forget to look into sales tax issues too. Depends on your state, but most require you to collect sales tax on the stuff you make and sell. It's separate from income tax and can bite you if you ignore it.

Great question about the sales tax! It really depends on your state, but many states do tax construction/remodeling services differently than just selling products. In my state, if you're providing both materials AND labor (like a full kitchen remodel), you typically need to collect sales tax on the total project cost, not just the materials. However, some states only tax the materials portion, and others have exemptions for certain types of construction work. Since Jessica mentioned a $14,500 kitchen remodel, that's definitely substantial enough that she should check with her state's department of revenue about sales tax requirements. The tricky part is that once you start doing bigger projects like this, you're clearly operating as a business rather than just selling occasional hobby items. Most states have thresholds where you need to register for a sales tax permit once you hit certain revenue levels. Better to get ahead of it now before it becomes a bigger issue down the road!

I'm going through something very similar right now! My LLC converted to an S-Corp in August 2024, and my CPA also put January 1, 2024 as the effective date on Form 2553. I was initially confused like you, but after reading through these responses and doing some research, it seems like this is actually a legitimate strategy. What I learned is that the IRS has specific relief procedures (like Rev Proc 2013-30 that others mentioned) that allow for retroactive S elections under certain circumstances. The key is that you have to demonstrate you intended S-Corp treatment from the beginning and meet the filing deadlines. I ended up calling the IRS Business line to check on my election status, and the agent confirmed they received it and said it looked fine. She mentioned that even if they can't approve the January 1st date, they'll just adjust it to the actual formation date - no penalties or major issues. My advice would be to give it a few weeks to process, then call to check the status. If there are any problems, the IRS will send you a letter explaining what needs to be corrected. Don't panic - this seems to be a pretty routine situation that accountants deal with regularly!

I'm an enrolled agent and I see this confusion about Form 2553 effective dates all the time. Your accountant likely did this intentionally, and it's actually more common than you'd think. Here's what's happening: When you request a January 1st effective date for an entity formed later in the year, you're essentially asking the IRS to treat your corporation as an S-Corp for the entire tax year. This can be beneficial because: 1. You avoid filing a short-period C-Corp return for the pre-election period 2. You get S-Corp tax treatment (pass-through taxation) for the full year 3. It simplifies your tax compliance The IRS has specific procedures that allow this under certain circumstances. Revenue Procedure 2013-30 provides relief for late or retroactive S elections when you can show you intended S-Corp status from formation. However, you're right that the election can't technically be effective before the entity exists. What typically happens is: - If the IRS approves the January 1st date under the relief procedure, you get full-year S treatment - If they don't approve it, they'll automatically adjust it to your incorporation date (June 15, 2024) Either way, you won't face penalties as long as the form was filed within the 75-day window from incorporation. The IRS will send you a determination letter confirming the effective date they've approved. I'd recommend waiting 60-90 days from your filing date, then calling to check the status if you haven't received confirmation. Don't stress too much - this is a routine situation that gets resolved smoothly in most cases.

Did you check with your state's department of revenue? Sometimes they keep records of your federal entity classification. When I had a similar issue, I found that my state had documentation showing my federal S-Corp status because they needed it for state tax purposes. Might be worth checking!

I went through this exact same situation two years ago with my LLC's S-Corp election from 2017. The IRS sent me a letter claiming they had no record of my Form 2553, even though I had been filing 1120-S returns for years without any issues. Here's what worked for me: I requested my business tax account transcript online through the IRS website (you can get this immediately without waiting on hold). The transcript showed my entity classification code had been updated to "S" in 2017, which proved they had processed my election even though they claimed they didn't have it. I also gathered every single tax return, notice, and correspondence from the IRS since 2018 that showed they had been treating me as an S-Corp. This included looking at the entity type listed on my tax transcripts and any notices that referenced my business as an S-Corporation. When I sent all this documentation to the IRS with a cover letter explaining the situation, they quickly acknowledged that their records showed I had been properly classified as an S-Corp all along. The whole thing was resolved in about 3 weeks once I provided the right documentation. The key is showing the pattern of IRS acceptance through their own records rather than trying to recreate the original Form 2553 filing. Your consistent filing of 1120-S returns that were accepted creates a strong presumption that your election was valid.

I went through this exact same confusion with my first K-1 last year! The good news is that you definitely don't need to file a Schedule C alongside your K-1 - that would actually be incorrect and could cause problems with the IRS. Here's what I learned: Your K-1 already includes your share of the partnership's income AND deductions. The partnership has already claimed most business expenses before calculating what goes on your K-1. So those equipment, travel, and professional development costs you mentioned might already be reflected in the numbers you received. The key is to distinguish between: 1) Expenses the partnership already deducted (which are built into your K-1 amounts) 2) Unreimbursed expenses YOU paid personally that weren't covered by the partnership For #2, you'd report these on Schedule E (not Schedule C) as unreimbursed partner expenses, but ONLY if your partnership agreement requires you to pay these expenses personally. My advice: Before claiming any deductions, carefully review all those supplemental statements that came with your K-1. They'll show you what expense categories were already handled at the partnership level. Also check your partnership agreement to see what expenses partners are expected to cover personally. Don't double-count expenses that are already reflected in your K-1 - that's the most common mistake first-time K-1 filers make!

I completely understand your confusion - I was in the exact same boat with my first K-1 last year! The short answer is NO, you should not file a Schedule C alongside your K-1. This is actually a common misconception that could get you into trouble with the IRS. Here's what's happening: Your K-1 already reflects your proportionate share of the partnership's income AND deductions. The partnership has already claimed business expenses like equipment, travel, and professional development before calculating what appears on your K-1. So many of those expenses you're thinking about claiming may already be built into the numbers you received. The only expenses you might be able to deduct separately are "unreimbursed partner expenses" - costs YOU paid personally that the partnership didn't reimburse AND that your partnership agreement requires you to pay. These would go on Schedule E (Part II), not Schedule C. Before claiming any deductions, carefully review: 1. All the supplemental statements that came with your K-1 - they show what expenses were already deducted at the partnership level 2. Your partnership agreement to see what expenses partners are expected to cover personally 3. Whether you have proper documentation showing these were unreimbursed partnership-related expenses The biggest mistake first-time K-1 filers make is double-counting expenses that are already reflected in their K-1. Take your time reviewing everything before claiming additional deductions!