When I tried getting my transcript online, the verification system kept rejecting me. After wasting almost 2 hours trying different things, I used Claimyr (https://claimyr.com) to get through to an IRS agent who helped me request my transcript by mail. It's a service that navigates the IRS phone tree and holds your place in line. Got connected to a real person in about 15 minutes instead of the usual 2+ hour wait time. The agent was able to verify my identity over the phone and get my transcript request processed.

Just to add another option - if you're having trouble with the online verification or don't want to wait for mail, you can also call the IRS directly at 1-800-908-9946. It's their automated transcript request line. You'll need your SSN, date of birth, and the address from your most recent tax return. The system will mail your transcript to the address on file within 5-10 business days. Sometimes this is faster than going through the full online account setup if you're just looking for a one-time transcript request.

Just wondering what payroll software ppl are using for this kind of family business situation? I tried setting up QuickBooks for my kids but it seems like overkill for just 2 part-time workers.

This is such a smart approach to teaching your kids about work and saving! I went through something similar with my landscaping business and my two sons. One thing I'd add that hasn't been mentioned yet - make sure you're paying them at least minimum wage for your state. The IRS will scrutinize family arrangements, and paying below minimum wage could trigger questions about whether it's a legitimate employment relationship or just an allowance disguised as wages. Also, consider having them open their own business bank accounts to deposit their paychecks. It creates a clear paper trail and teaches them banking responsibility. My boys loved seeing their money grow in their accounts, and it made the Roth IRA conversations much more meaningful when they could see their actual earned income. The documentation aspect can't be overstated - I keep a simple spreadsheet with dates, hours, specific tasks completed, and even photos of their work. Makes tax time much smoother and gives you confidence if any questions ever come up.

The Identity Verification process (IdVer) is distinct from a standard Taxpayer Assistance Center appointment. IdVer appointments specifically address potential identity theft concerns, while TAC appointments handle broader issues. The two forms of identification must meet the Acceptable Documentation standards outlined in Publication 1586, with one being a primary photo ID (passport, driver's license, or state ID) and the secondary ID potentially including birth certificate, Social Security card, or voter registration card. Military IDs are accepted as primary identification across all locations.

Thank you for sharing such detailed information! This is incredibly helpful. I'm curious about one thing though - you mentioned the process took exactly 27 minutes total, but the actual verification with the agent was only 8 minutes. What accounted for the other 19 minutes? Was that mostly waiting time, or were there other steps like check-in procedures or security screening that people should factor into their schedule? I have an appointment next week and trying to plan my day around it.

One thing I haven't seen mentioned yet is that you need to keep REALLY good records of your NOL and how much you use each year. The IRS doesn't track this for you! I learned this the hard way when I got audited for tax year 2022. I had an NOL from 2021 that I carried forward, but I couldn't immediately produce documentation showing how I calculated it. Had to go back through all my records and reconstruct everything, which was a huge headache.

This is such a helpful thread! I'm dealing with a similar situation where my single-member LLC had losses in 2023 but I'm expecting profits in 2024. One thing that's been confusing me is the interaction between NOL carryforwards and the QBI (Qualified Business Income) deduction. If I use my NOL carryforward to offset business income in 2024, does that reduce my QBI deduction for that year? It seems like the NOL would reduce my taxable business income, which would then reduce the amount eligible for the 20% QBI deduction. Has anyone navigated this combination of NOL carryforward and QBI? I'm trying to figure out if there's an optimal strategy for timing the use of my NOL to maximize both benefits.

Just FYI - if you're under age 59½ when you took the distribution, there's normally a 10% early withdrawal penalty unless you qualify for an exception. You mentioned deferring the penalty, which makes me think you might be planning to use the COVID-related distribution rules, but those have expired. Make sure you understand if you actually qualify for a penalty exception (like using the funds for unreimbursed medical expenses over 7.5% of your AGI or certain first-time home purchases), or if you're going to owe that 10% penalty when you file.

I went through a similar situation last year when I had to withdraw from my 401k due to unexpected medical bills. The good news is that yes, you'll get back the excess withholding if your tax liability ends up being zero after credits. One thing that really helped me was keeping detailed records of everything - the 1099-R form you'll get from your 401k administrator, any hardship documentation, and records of the withholding amounts. When I filed my return, the 20% they withheld was treated exactly like regular payroll withholding - it's just money already paid toward your tax bill. Since you mentioned you'll be in the lowest tax bracket and qualify for earned income credit and child tax credits, there's a very good chance you'll get most or all of that withholding back. Just make sure to double-check that foundation repair qualifies as a valid hardship reason with your plan administrator to avoid any issues with the early withdrawal penalty later. The whole process was much more straightforward than I expected once I understood that withholding is just a prepayment, not your final tax amount.