I'm dealing with something very similar with my online reselling business - three years of losses and getting nervous about the hobby loss rule. One thing that helped me feel more confident was creating a formal business plan that shows specific steps I'm taking to become profitable. The key insight I got from my CPA is that the IRS isn't just counting years of losses - they're looking at whether you're operating like a real business. Since you have wholesale accounts, proper record keeping in QuickBooks, and are making operational changes, those are all strong indicators of business intent. For the inventory question if you dissolve - my understanding is that you'd need to report any inventory you keep at fair market value as income, but you should definitely confirm this with a tax professional. Have you considered maybe scaling back operations instead of fully dissolving? Sometimes reducing inventory investment while maintaining the business structure can help turn things around.

The hobby loss rule can be stressful, but you're actually in a stronger position than you might think. Having legitimate wholesale accounts with Southern Hobby and GTS Distribution, maintaining detailed QuickBooks records, and keeping all receipts shows you're operating like a real business - not a hobby. The 3-out-of-5 year profitability test is just one factor the IRS considers. They also look at whether you're making business-like changes to improve profitability, which it sounds like you are doing. The fact that you're actively evaluating whether to continue or dissolve shows business judgment. If you do decide to dissolve, you'll need to handle the inventory carefully. Any inventory you sell during wind-down is income, while inventory you keep for personal use would be treated as a distribution at fair market value. You can still deduct legitimate business expenses through the final dissolution. One suggestion: before dissolving, consider documenting any specific changes you've made or plan to make to improve profitability. This creates a paper trail showing business intent that could be valuable if the IRS ever questions your losses. The card market has been volatile, so external factors beyond your control might also support your case.

Definitely just endorse it over to your mom. I do this with my roommate all the time - we just write "Pay to the order of [other person's name]" and then sign it. Super simple and totally legal. Most banks are fine with it if you both have ID.

Yes, you can definitely deposit your tax refund check into your mom's account! This is actually pretty common for people who don't have their own bank accounts yet. The key is proper endorsement - you'll need to sign the back of the check and write "Pay to the order of [your mom's full name]" above your signature. Your mom will then need to sign below your signature. Most banks will accept this as long as you both have valid ID and can explain the situation if asked. Some banks are stricter than others, so it might help if you both go to the bank together for the deposit. This won't cause any issues with the IRS at all - once they issue the refund check to you, they don't track where you deposit or cash it. If for some reason the bank gives you trouble, you have other options like check cashing services, loading it onto a prepaid debit card, or mobile deposit through your mom's banking app. But honestly, most banks handle endorsed checks like this routinely. Just make sure both signatures are clear and legible!

Just wanted to add that I've been delivering for 3 years, and mileage is BY FAR your biggest deduction. Last year I drove about 15,000 miles for deliveries and that deduction alone was over $8,000! Don't forget to track EVERY mile you drive for work, including: - Miles between deliveries (not just when a customer's food is in your car) - Miles driving to pickup locations - Miles driving back to your preferred zone after dropoffs And remember that commuting miles (from your home to your first pickup or from your last dropoff back home) are NOT deductible. I learned that the hard way!

I'm a delivery driver too and am used Schedule C to deduct my expenses. One thing I want to clarify - meals are SOMETIMES deductible, but only in specific situations. If you're on a delivery that takes you out of town overnight (like some catering gigs do), then meals during that time are 50% deductible. But regular lunch during your local delivery shift isn't deductible at all. For clothing, I checked with my tax person and they said unless it's a uniform that can't be worn elsewhere, it's not deductible. My delivery company polo shirts with logos count, but jeans don't. Same with shoes - even if you use them just for delivery, they're not deductible if they're just regular sneakers.

Here's a step-by-step of what to expect with IRS identity verification: 1. Determine your verification method - online through ID.me or by phone/in-person 2. For online verification: Create an ID.me account if you don't have one 3. Have ready: government ID, smartphone for photos, and social security number 4. Complete facial recognition step (usually a selfie or short video) 5. Answer knowledge-based questions about your financial history 6. Once verified, your return processing will resume 7. Check your tax transcript about 7-10 days after verification 8. Expect your refund approximately 2-3 weeks after successful verification The IRS is currently processing these verification cases within about 21 days after verification is complete, though it can sometimes be faster. The key is to respond promptly to avoid further delays.

I went through identity verification just two months ago and wanted to share what worked for me. The key thing is to be prepared before you start - don't try to wing it. I gathered all my documents first: driver's license, SSN card, last year's tax return, and had my phone ready for the selfie portion. The ID.me process took about 25 minutes total. The knowledge-based questions were pretty specific - they asked about my mortgage payment amount, a car loan I had 3 years ago, and previous addresses. Having my credit report handy helped me answer accurately. One tip: if you wear glasses normally, wear them for the selfie verification. The system flagged me initially because my driver's license photo shows me with glasses but I took the selfie without them. Had to redo that part. My timeline was: verified on January 15th, transcript updated January 23rd, refund deposited January 28th. So about 13 days total, which was faster than I expected based on what I'd read online.

I'm going through this exact nightmare right now too! Filed my paper return in late February via certified mail and it's been complete radio silence from the IRS ever since. My situation is almost identical - my computer died right before tax season and took all my TurboTax files with it, leaving me no choice but to file on paper. This thread has been such a lifesaver to find. I had no idea that 2-6 months was actually normal processing time for paper returns - that seems absolutely insane in 2024 but at least now I know I'm not losing my mind. The constant checking of "Where's My Refund" and seeing "no record found" has been driving me crazy, but knowing so many others are in the same boat really helps. That certified mail receipt has been my only comfort through this whole ordeal. It's good to know that really does protect us from late filing penalties even if the IRS takes forever to actually process our returns. I'm definitely going to use that tax transcript tip for next year - wish I had known about that option sooner! Would have saved me months of stress and anxiety. Thanks to everyone who shared their experiences and timelines. It really helps to know we're not alone in this frustrating waiting game!

I'm dealing with this exact same frustrating situation! Filed my paper return via certified mail back in February and have been checking "Where's My Refund" obsessively with absolutely no results. My laptop died right before tax season too and I lost all my previous year's tax files - it's like technology conspires against us at the worst possible times! This thread has been incredibly reassuring though. I had no idea that 2-6 months was actually considered normal processing time for paper returns. It seems completely absurd in 2024, but at least now I know I'm not going insane and that my return didn't actually vanish into some IRS black hole. That certified mail receipt has been my only source of comfort through this whole ordeal - it's good to know that really does protect us from late filing penalties even if the IRS takes forever to process everything. And I'm definitely saving that tax transcript advice for next year! Wish I had known about that option before going through all this stress. Thanks to everyone for sharing their experiences and timelines. It really helps to know we're not alone in this agonizing waiting game. Hopefully we'll all start seeing some movement in our cases soon!