whatever you do DONT AMEND your return thinking that will speed things up. That'll put you at the back of an even longer line. Just wait it out. The IRS is slow but they'll get to it eventually.

Filed March 15th here and in the exact same boat - all zeros on transcript, no updates, starting to panic about bills too. Really glad to see I'm not alone in this mess. Reading through all these responses is actually helping my anxiety a bit. Sounds like 6-8 weeks is the new normal this year which is absolutely ridiculous but at least now I know what to expect. Going to try some of these suggestions like checking the Return Transcript separately and maybe that Claimyr thing if I get desperate enough. Thanks everyone for sharing your experiences!

For the Turo situation, I think you might be missing potential deductions. If you received $13,500 for damages and paid $13,500 for repairs, you should record both transactions. Report the $13,500 damage payment as income (Turo will likely issue a 1099-K), and then deduct the $13,500 repair cost as a business expense. Even though it's a wash income-wise, documenting both sides properly will keep your books clean and defendable if you're ever audited. Ask your repair shop for an itemized receipt for your records.

Great questions! As a fellow small business owner who's dealt with similar situations, here are some key points to consider: For Situation 1 (Vrbo property management): You're correct to be thinking about 1099s. Since you're receiving the full amount from Vrbo and then paying your client their portion, you should issue them a 1099-NEC if you paid them $600+ during the tax year. This creates the proper paper trail - you'll report the full Vrbo income, deduct what you paid to the property owner as a business expense, and your client reports their portion as income. For Situation 2 (door replacement): Since you paid the contractor directly for services and it was over $600, you should issue them a 1099-NEC. The reimbursement from your client doesn't change your obligation to report what you paid the contractor. Your client reimbursing you isn't taxable income to you since it's just reimbursement. For Situation 3 (Turo damage): This one's tricky and depends on how Turo classifies the payment. If they treat it as insurance proceeds for property damage, it might not be taxable income. But if they issue you a 1099-K, you'll need to report it and offset it with the repair expenses. Either way, no 1099 needed for the body shop since repair services to your business property generally don't require 1099 reporting. I'd recommend consulting a tax professional for the Turo situation specifically, as the tax treatment can vary based on the exact nature of their damage coverage program.

I'm dealing with the exact same situation and honestly, the conflicting advice is driving me crazy! My S-corp has a rental property that's fully managed by a property management company, and I literally just sign the annual tax forms and pay insurance. That's it. My CPA insists no W-2 is needed since I'm not materially participating in the business operations, but then I read horror stories online about people getting audited and owing back taxes. The gray area nature of this rule is so frustrating. What's really concerning me is that even if my CPA is technically correct, will the IRS see it the same way during an audit? I'm starting to think it might be worth just taking a small salary (maybe $2-3k annually) just to have documentation that I'm following the rules, even if it's not technically required in my situation. Has anyone found any definitive IRS guidance specifically about S-corps with fully managed rental properties? The general "reasonable compensation" rules seem to be written more for active businesses, not passive rental investments.

This is such a common source of confusion! I went through the exact same thing with my S-corp rental property last year. The key factor really is whether you're "materially participating" in the rental activity. From what you've described - just filing taxes and paying insurance while everything else is handled by property management - you're likely in the safe zone for not needing W-2 wages. The IRS generally treats rental real estate differently from active businesses under the passive activity rules. However, I'd suggest documenting everything carefully: keep records of exactly what tasks you do vs. what the property management company handles, how many hours you spend on business activities (probably very few), and maintain clear separation between business and personal expenses. If you're still worried about it, you could always start taking a minimal salary going forward (maybe $2-4k annually) just for audit protection. It's a small cost for peace of mind, and it would demonstrate good faith compliance even if not technically required in your situation. Your accountant's advice sounds reasonable based on the facts, but definitely keep good documentation to support that position!

As someone who just went through this exact process last month with my German-owned LLC, I can confirm that the $500 estimate is pretty accurate if you handle most of it yourself with online tools. Here's my actual breakdown: - State dissolution filing (Delaware): $220 - taxr.ai subscription for the tax forms: $89 - Bank account closure fees: $25 Total: $334 The taxr.ai platform absolutely handled the Form 5472 and pro forma Form 1120 - that's exactly why I chose it after reading similar threads. It walked me through each section and even caught a mistake I made in the ownership percentage reporting. The system is specifically designed for these foreign ownership scenarios. What really impressed me was how it handled the timing. It recommended I complete all tax filings before submitting the state dissolution paperwork, which several people here have mentioned is important. The platform also generated a dissolution checklist specific to my state's requirements. One tip: start with the free assessment on taxr.ai to see exactly which forms your brother needs before committing to anything. In my case, it confirmed I needed the 5472/1120 combo plus a final 1040-NR, but it might be different depending on his specific situation and the state where the LLC was formed. The $25,000 penalty is real and they're not kidding about enforcement - I know someone who got hit with it two years after their "ghost dissolution" attempt. Worth every penny to do this right.

I've been lurking in this community for a while and finally decided to jump in because this thread perfectly captures the confusion I had when closing my own foreign-owned LLC earlier this year. What strikes me most about all the advice here is how consistent everyone is about NOT taking the "ghost dissolution" route. I almost made that mistake myself - it seems so tempting when you're broke and the business failed, but the potential consequences are genuinely scary. One thing I haven't seen mentioned yet is the importance of properly closing any business bank accounts AFTER you handle the tax filings but BEFORE the state dissolution is complete. I learned this the hard way when my bank froze my account mid-dissolution because they couldn't verify the entity status. Had to provide them with copies of all the tax filings to prove everything was being handled properly. For anyone considering the DIY route with online tools, I'd also recommend keeping detailed records of every step you take. Screenshot confirmations, save all PDF copies, keep email receipts - basically create a paper trail that proves you handled everything by the book. If the IRS or state ever questions something years later, having that documentation is invaluable. The foreign ownership reporting requirements really are as complex as everyone is saying, but they're not impossible to navigate if you use the right resources and don't try to cut corners. Better to spend a few hundred dollars now than potentially deal with five-figure penalties later.

Just to add something important - if your in-laws were primarily living on Social Security and VA benefits, there's a good chance they weren't required to file at all. Many people don't realize this. For example, in 2022, a married couple over 65 only needed to file if their gross income exceeded $28,700. Social Security is often not counted in this calculation unless they had other substantial income. VA benefits are generally tax-free. Before you panic about years of unfiled returns, find out if they were even required to file. This could be much simpler than you think!

One thing nobody's mentioned - you should check if the estate itself needs to file a return. Form 1041-ES is for estimated tax payments for estates and trusts. If the estate generated income after your in-laws passed (like interest on accounts, sale of assets, etc.), the estate might need to file its own return separate from your in-laws' personal returns. Usually this only applies if the estate earned more than $600 in income before assets were distributed to heirs. Did the estate have any income-generating assets that weren't immediately distributed?