I appreciate everyone's input here, especially the tax attorney's clarification. As someone who was also confused by all the news coverage, I think the key point is that the IRS is a massive operational machine that continues running regardless of leadership changes. The comparison to past government shutdowns is really helpful - even during those, essential tax functions continued. And the constitutional point about Congress being the only body that can change tax rates is crucial to understand. For anyone still worried, I'd echo the advice to use official IRS resources or speak directly with an IRS representative rather than relying on news speculation. The media tends to sensationalize administrative changes, but your tax obligations remain exactly the same as they were before any restructuring began. Bottom line: pay your taxes as normal, don't claim exempt unless you actually qualify, and remember that failing to pay will only create bigger problems for you personally regardless of what's happening at the agency level.

This is exactly the kind of practical advice we need right now! I've been following this thread since the beginning and was initially pretty worried about the whole situation. Like many others here, I was getting caught up in all the news coverage and starting to panic about whether I should change my tax strategy. What really helped me was seeing the progression of comments from people who were skeptical but then actually took steps to get verified information - whether through the AI tax tools, speaking directly with IRS representatives, or getting clarification from the tax attorney. It's a good reminder that when we're uncertain about something this important, the best approach is to seek out authoritative sources rather than just worrying. The constitutional point about Congress being the only body that can change tax law was particularly eye-opening. I honestly didn't know that before reading this discussion. It makes the whole situation much less scary when you understand that administrative restructuring literally cannot change what you owe in taxes. Thanks to everyone who shared their experiences and expertise. This thread turned what felt like a confusing crisis into a much clearer understanding of how our tax system actually works.

Congrats on finally seeing that 846 code! I'm still waiting on mine - filed 3/8 and my transcript is still showing processing. It's reassuring to see someone with a similar filing date getting movement. Question though - did you have any complications with your return (amended sections, EITC, additional forms) or was it pretty straightforward? Trying to gauge if there's hope for us slightly-later filers or if I'm looking at another few weeks of transcript stalking. The waiting really is the hardest part of this whole process!

Hey Freya, congrats on finally getting that 846 code! As someone who's been through this waiting game multiple times, I can definitely relate to the "molasses flowing uphill" analogy - that's exactly what it feels like! 😂 I filed on 3/4 this year and I'm still stuck in processing limbo, so seeing your timeline gives me hope that mine might update soon too. It's interesting how the IRS batches seem to work - sometimes people who file later get processed first, and vice versa. Thanks for sharing your timeline as a data point - these real experiences are way more helpful than the generic "21 days" message we always get. Hopefully your direct deposit hits your account tomorrow or Friday!

I'm dealing with a similar depreciation mess on my rental property and this thread has been incredibly helpful! I made the same mistake of using FMV instead of adjusted basis when I converted my home to a rental about 3 years ago. One thing I'm still unclear on - when calculating the 481(a) adjustment, do I need to account for any improvements I made to the property between the original purchase and the conversion date? I added a deck and updated the kitchen during the time I lived there, so my adjusted basis should be higher than just the original purchase price, right? Also, for those who chose the 4-year spread option, do you report it as ordinary income each year, or does it get special treatment since it's related to depreciation recapture? I'm trying to plan out the tax impact before I file the Form 3115. Thanks to everyone for sharing their experiences - it's so much better than trying to figure this out from just reading IRS publications!

I went through this exact same situation two years ago and can confirm you're on the right track with Form 3115 and DCN 7. The relief of finally getting it sorted out is huge! One thing I'd add that hasn't been mentioned yet - make sure you keep really detailed records of your correction process. I created a spreadsheet showing year by year what I claimed vs. what I should have claimed, along with supporting documentation for my original purchase price and any improvements. This came in handy when I got a notice from the IRS about 8 months later (not an audit, just a clarification request). Having everything organized made it easy to respond, and they accepted my documentation without any issues. Also, if you're using tax software, some programs don't handle Form 3115 very well, especially the 481(a) adjustment calculations. I ended up having to do mine by hand and attach it as a PDF. Just something to keep in mind if your software seems to be calculating things incorrectly. The peace of mind of knowing everything is correct going forward is worth the hassle of fixing it properly!

I've been dealing with this same message for about 10 days now and honestly it's driving me crazy! 😅 The waiting is the worst part because you have no idea if it's going to be resolved in a few more days or if you're about to get hit with some random notice asking for more documentation. What I've learned from lurking in tax forums is that this message can mean anything from "we're just slow" to "something doesn't match up and we need to verify." The frustrating part is there's literally no way to know which one it is until either your refund shows up or you get mail from them. Has anyone here actually called the IRS phone line while having this status? I'm debating whether it's worth the 2+ hour hold time just to potentially be told "wait for a notice" 🤷‍♀️

I'm going through the exact same thing right now! Got that message 5 days ago and it's been radio silence since. What's really getting to me is how vague it is - like they could literally be reviewing ANYTHING about your return and you have zero visibility into what's actually happening behind the scenes. I've been checking the app obsessively (probably not helping my stress levels lol) but the status hasn't budged at all. The part about "if we need additional information, we'll mail a notice" is what keeps me up at night because who knows how long that could take to arrive or what they might want. From what I've read online, some people get through this in a week, others are stuck for over a month. It seems totally random which is so frustrating when you're trying to plan around getting your refund. Really hoping we both hear something soon! 🤞

Don't forget the deadline to establish a Solo 401k is December 31 of the tax year, even though you can actually fund it later (employee contributions by tax filing, employer contributions by business tax deadline)! I missed this subtlety last year and lost out on significant tax savings. Also, for the record, my CPA confirmed that with a partnership LLC, both spouses can have separate Solo 401ks as long as they're both partners in the business, but you need to be careful with the specific plan documents.

This is a complex situation that requires careful planning! I've been through something similar with my spouse and our consulting business. One key point that hasn't been fully addressed: when you have a partnership LLC, the income flows through to you as distributive shares reported on Schedule K-1, which is treated as self-employment income for retirement contribution purposes. This is different from W-2 wages or 1099 consulting income in how the contribution limits are calculated. For your husband's situation specifically - since he already maxes out his employee contribution at his day job, he can only make employer contributions through the LLC based on his share of the partnership's net earnings from self-employment. The 20% calculation applies to his net earnings after the self-employment tax deduction. Also worth noting: make sure your partnership agreement clearly defines each partner's role and compensation if you're both setting up Solo 401ks. The IRS will want to see that the contributions are reasonable based on actual services provided to the business. I'd strongly recommend getting a fee-only financial advisor who specializes in small business retirement planning to review your specific numbers before making final decisions. The interaction between partnership income, outside consulting, and existing employer plans can get tricky fast.