This is exactly why I always recommend keeping detailed records when dealing with any tax payment processor. I had a similar issue with a different third-party service where they misapplied my payment to the wrong tax period. One thing that really helped me was requesting a "payment trace" from the IRS - it's Form 3911 and it forces them to do a thorough search of their systems to locate your payment. Since you already have confirmation that the payment exists but was applied to the wrong SSN, this trace should help document everything officially. Also, don't just rely on phone calls - send everything in writing too. Mail a certified letter to the IRS explaining the situation with copies of your PAYUSATAX confirmation, the EFT number, and any notes from your phone conversations. Having a paper trail is crucial if this drags on. The good news is that once they locate the misapplied payment, they can usually transfer it to your account fairly quickly. Just make sure you get that penalty suspension letter others mentioned so you don't get hit with additional charges while they sort this out.

I've been through this exact nightmare with PAYUSATAX! What helped me get it resolved faster was being very persistent about getting specific reference numbers from every person I talked to. When you call the IRS, ask for the "Computer Condition Code" or "CCC" that shows your payment status - this helps them track exactly where your money went. Also, if you have online access to your IRS account, check the payment history there. Sometimes payments show up online before the phone agents can see them in their system. The key is having multiple people document the same issue - it creates a stronger paper trail. One thing I learned the hard way: don't let them tell you to "wait and see" for months. Be polite but firm about getting a timeline and specific next steps. Ask to speak to a supervisor if the first agent can't help. The IRS actually has procedures for these payment processor errors, but you have to push to get them to follow their own process. The silver lining is that once they confirm the payment exists (which they already have), it's usually just a matter of moving it to the right account. But definitely get that penalty suspension in writing like others mentioned - that's your safety net.

One more thing - when you respond to the CP2000, don't just send a stack of documents without explanation. Create a simple cover letter that clearly states: 1) You agree/disagree with the notice 2) The exact reason (Robinhood reported proceeds without cost basis) 3) A simple calculation showing your actual gain/loss I made the mistake of just sending in statements without a clear explanation and ended up getting another notice because they couldn't figure out what I was trying to show them.

As someone who just went through this exact same nightmare with Robinhood, I wanted to share what worked for me. I got a CP2000 for $23K that I definitely didn't owe. The key thing that saved me time was organizing everything before I responded. I created a spreadsheet with three columns: what the IRS thought I made, what I actually made, and the difference. Then I attached the supporting Robinhood documents for each transaction. What really helped was calling the number on the CP2000 notice (yes, you'll be on hold forever, but it's worth it). The agent told me that as long as I could prove my cost basis with official brokerage statements, they would accept my response. She also mentioned that these Robinhood cases are super common right now - apparently their reporting system changed and it's causing tons of these notices. My advice: Don't panic, gather ALL your Robinhood tax documents (the complete package, not just the summary), and respond with a clear explanation. It took about 8 weeks, but I got a revised notice showing I owed $0. You've got this!

Has anyone successfully done the "file 1120 now, then amend later when approved" approach? I'm in the same boat but worried about the complexity of amending a C corp return to zero and filing a new S corp return later. Feels like it could create more problems.

I've been through this exact situation multiple times, and here's my recommended approach based on experience: **First, file Form 7004 immediately** to get a 6-month extension for both the 1120 and 1120S returns. This is crucial - you're at the deadline now and need to protect against penalties. **Second, document everything about your Form 2553 submission.** Keep copies of certified mail receipts, fax confirmations, or any proof of timely filing. The IRS is still experiencing major processing delays, so 2 months without response is unfortunately normal. **Third, avoid the "file 1120 then amend" strategy.** I've seen this create unnecessary complexity and potential state tax issues. It's much cleaner to wait for the S election approval and file correctly the first time. While waiting, you might want to prepare both returns so you're ready either way. If the S election is approved, file the 1120S. If denied (rare but possible), you'll have the 1120 ready to go within your extension period. The key is that Form 7004 buying you time - use it. Most S elections that are properly completed do get approved, it just takes time with current IRS processing delays.

17 Another important thing to know - starting in 2022, Stripe also includes sales tax in the gross amount on the 1099-K! If you collect and remit sales tax through Stripe, that's also contributing to the difference. For example, if you sold $100 worth of products and collected $8 in sales tax, the 1099-K shows $108 even though the sales tax isn't your income. Make sure you're tracking and deducting any sales tax that's included in the gross amount but that you've remitted to your state.

I went through this exact same nightmare last year! The key thing to understand is that Stripe's 1099-K is essentially a "gross sales" report - it includes everything that flowed through your account before ANY deductions. Here's what I found contributed to my $18k difference: - Processing fees (about 2.9% + 30¢ per transaction) - Refunds and chargebacks (counted as "gross" even though you returned the money) - Disputes and failed payments that were initially processed - Any subscription billing that was later reversed The good news is you can deduct ALL of this on your tax return. I use Schedule C and put the full 1099-K amount as gross income, then deduct processing fees under "Other business expenses" and refunds under "Returns and allowances." Pro tip: Go to your Stripe dashboard → Reports → Balance and download the annual summary. It breaks down exactly where every penny went. Keep this with your tax records - it's your best friend if the IRS ever questions the difference. Don't stress too much about it looking suspicious. This discrepancy is super common with payment processors, and the IRS knows about it. Just make sure you have good documentation!

Just a quick tip - if your total capital gains are only $19, you might still need to report it, but it's not going to meaningfully impact your tax bill. The IRS has bigger fish to fry than chasing down someone for potentially 2-3 dollars in taxes. Don't stress too much about getting this perfect - just make a good faith effort to report it correctly using the advice others have given about Schedule D, and you'll be fine!

I completely agree with Fatima - you absolutely need to report all income correctly, especially as a non-resident. The IRS expects full compliance regardless of the amount. That said, for your $19 in capital gains, here's what you need to do: Report the stock sales on Schedule D (and Form 8949 if needed) attached to your 1040NR. You don't need a 1042S for this - that form is only for income subject to withholding like dividends and interest, not capital gains. For the free promotional stock, report its fair market value on the day you received it as "Other Income" on your 1040NR. When you eventually sell that stock, you'll report any gain/loss based on that original value as your cost basis. Sprintax should have sections for both capital gains and other income where you can manually enter this information. The key is having accurate records of your transaction dates, purchase prices, and sale prices. Your Robinhood account statements should provide all this data even without a formal tax document.