This exact thing happened to my neighbor last year! The CP80 notice can be really scary but it's usually just a processing mix-up. Here's what worked for her: She called her bank and got a copy of the front and back of the cashed check - the back showed it was endorsed by the IRS Treasury, which proved they definitely received her payment. Then she made copies of her entire tax return and wrote a cover letter explaining the situation. The key thing is to respond quickly to the CP80 notice. Don't wait thinking it will resolve itself. Include: - Copy of your complete tax return (mark it "DUPLICATE - CP80 RESPONSE") - Copy of the cashed check or bank statement - Brief letter explaining you filed and paid on time Send everything certified mail to the address on the CP80 notice. My neighbor got a letter back in about 6 weeks confirming everything was straightened out. The IRS even apologized for the confusion! Also, definitely keep trying to call the IRS. Early morning (around 7 AM) seems to have shorter wait times. You might get through eventually and they can sometimes resolve it over the phone if you have your documentation ready.

I actually went through this exact same situation about 8 months ago and it was absolutely nerve-wracking! The CP80 notice made it sound like I was in serious trouble, but it really was just a processing error on their end. What helped me was understanding that the IRS payment processing and return processing are completely separate systems. Your check gets deposited almost immediately, but your actual return can get stuck in various queues for manual review, data entry backlogs, or just random processing delays. Here's what I learned from my experience: - Don't panic about penalties since you paid on time (that's what matters most financially) - The "balance released" language in the CP80 just means they're not holding your payment hostage while figuring out the return issue - Make sure to respond within the timeframe they specify in the notice (usually 30 days) I followed similar advice to what others have mentioned - sent a complete copy of my return with "CP80 RESPONSE" written on top, included my bank statement showing the cashed check, and used certified mail. It took about 5 weeks but I got a letter confirming everything was resolved. The most important thing is to respond promptly and keep copies of everything you send them. This is way more common than you'd think, so try not to stress too much about it!

did you claim EIC or CTC? that usually makes it take longer tbh

3 weeks is definitely frustrating but not unusual this year. The "Still Being Processed" message without a tax topic code usually means they're doing a manual review of something on your return - could be income verification, credits, or just random quality control. I've seen people wait anywhere from 4-10 weeks with this message. Try checking your account transcript online if you can access it - that'll give you more specific info about what's happening behind the scenes.

I went through this exact same situation last year with SBTPG and Venmo! Mine took 6 business days total from when the IRS sent it to when it finally appeared in my Venmo account. The most frustrating part is that SBTPG's tracking system doesn't give you real updates - it just sits on "processing" until suddenly the money shows up. Since your transcript shows the IRS already sent the funds, you're definitely in the queue with SBTPG. I'd recommend checking your Venmo account every morning since the deposits usually hit early in the day. For car repairs, I totally get the anxiety - maybe see if your mechanic can wait a few more days or if you have any other short-term options? Based on the timeline you mentioned (8 days since approval), you should see it very soon!

I feel your pain! I went through the exact same thing with SBTPG and Venmo earlier this year. It's so nerve-wracking when you need the money for something important like car repairs. From my experience, SBTPG usually releases funds within 3-5 business days of receiving them from the IRS, but it can feel like forever when you're waiting. The good news is that since your transcript shows the IRS already sent the money, you're definitely in SBTPG's system and it will come through. One thing that helped me was knowing that SBTPG typically processes batches of refunds early in the morning, so check your Venmo first thing when you wake up. Also, if you haven't already, try logging into your SBTPG account to see if the status has changed - sometimes it updates there before you see the actual deposit. Hang in there, it should hit your account any day now!

Has anyone actually been audited for claiming Section 1244 losses? I'm in a similar situation and wondering about the risk level if I go ahead with a conversion now.

I went through something very similar with a startup investment that went bad. The key issue with your situation is the timing - converting debt to equity after the company has already announced they're shutting down is going to be a huge red flag for the IRS. Section 1244 is designed for legitimate equity investments in small businesses, not for retroactive tax planning when a company fails. The IRS will look at whether you had a legitimate business reason for the conversion beyond just getting better tax treatment. Since the company has already announced closure, it's hard to argue there was any business purpose. Instead of the conversion route, you might want to look into claiming a bad debt deduction under Section 166. If you can demonstrate the loan is completely worthless (which sounds like your situation), you might be able to claim it as a short-term capital loss. While that's still subject to the $3,000 annual limitation, it's much safer from an audit perspective than trying to force a Section 1244 treatment through a last-minute conversion. I'd strongly recommend consulting with a tax professional before making any moves. The potential tax savings aren't worth the audit risk and penalties if the IRS views this as an abusive tax shelter.

I went through this exact situation about 8 months ago when I acquired a tech startup from overseas. Here's my complete experience that might help: **The ITIN Route is Mandatory**: Don't even try submitting 8822-B without it - the IRS will reject it immediately. I learned this the hard way after my first attempt. **My Timeline**: - ITIN application (W-7): 9 weeks to approval - 8822-B processing: 5 weeks after submission - Total: About 3.5 months from start to finish **Key Documents I Needed**: - Certified passport copy (got it done by a local notary - no need for US consulate) - Utility bill translated to English by certified translator - Bank statement from home country (also translated) - Cover letter explaining the business acquisition and need for ITIN **What I Wish I'd Known Earlier**: 1. File Form 2848 (Power of Attorney) immediately to authorize your US attorney/CPA to receive IRS notices 2. Update the business address with the IRS right away so notices don't go to the previous owner 3. Consider using a Certified Acceptance Agent (CAA) - it costs more but eliminates the risk of mailing your actual passport **Unexpected Issue**: The IRS initially questioned why I needed an ITIN since I'm not a US resident. Including documentation about the business acquisition and a clear explanation in my cover letter resolved this. The process is definitely manageable once you know the correct steps. Happy to answer any specific questions about my experience!

I've been through this exact process twice now - once for a California LLC acquisition and once for a Texas corporation. The advice here is spot-on, but I want to add a few practical tips that made a huge difference for me: **Document Preparation Shortcuts**: - Get multiple certified copies of your passport (I got 5) - you'll need them for banking, business licenses, etc. after the EIN update - If your home country has an apostille process, get your passport apostilled too. Some US institutions prefer this over regular notarization **Banking Bridge Solution**: While waiting for the ITIN/responsible party update, I opened accounts with international banks that have US branches (like HSBC or Citi). They were more flexible about the documentation requirements during the transition period. **Communication Strategy**: Set up a Google Voice number with a US area code and forward it to your international number. Many US institutions (including some IRS departments) are more responsive to US phone numbers, and it makes follow-ups much easier. **Timeline Management**: Start the ITIN process immediately, but also prepare all your other business documentation in parallel. Once the responsible party change goes through, you'll want to update banking, insurance, contracts, etc. quickly. The 3-4 month timeline mentioned by others is accurate in my experience. Don't let anyone pressure you into shortcuts - doing it right the first time saves months of headaches later. Good luck!