I just went through this exact situation with my mortgage! Here's what I did to resolve it: Step 1: I printed my transcript showing the processing date Step 2: I asked my lender if they would accept this as proof of filing Step 3: They required an official record of account transcript Step 4: I ordered this specific transcript from the IRS website Step 5: This satisfied my lender's requirements Thank you all for the insights on the cycle codes! I had no idea what these numbers meant until now. Really appreciate everyone taking time to explain this.

I've been dealing with similar transcript confusion for weeks! The cycle codes are like a secret language that only IRS insiders understand. From what I've gathered through my own research and talking to a tax professional, your cycle 20240605 with the Feb 26th processing date is actually a good sign - it means your return made it through the initial review process without any red flags. For your mortgage situation, I'd recommend getting a "Record of Account" transcript in addition to your regular transcript. Most lenders accept this as proof that your taxes are processed even if the refund hasn't hit your account yet. You can order it online through the IRS website and it usually arrives within 5-10 business days. The waiting game is brutal, especially with time-sensitive financial commitments. Hang in there - based on the timeline others have shared, you should see movement soon!

Wait i'm confuses...i thought business losses were reported on a schedule C and capital losseson a schedule D? Are they not treated the same on the 1040?

Just wanted to add a practical tip for tracking all this - keep meticulous records of your business activities and time spent if you're claiming active participation. The IRS loves to challenge material participation claims, especially when substantial losses are involved. I learned this lesson when I had a side consulting business that lost money its first year. Even though it was clearly active business income (I was doing all the work myself), I didn't keep great time records. When my return got selected for review, I had to scramble to reconstruct my activity logs from emails, calendar entries, and receipts. Also worth noting - if you're planning to convert your LLC to an S-corp next year, make sure you understand how that affects loss carryforwards. Generally, losses from your sole proprietorship can't be used by the S-corp since they're different tax entities. You'd want to utilize as much of the current year loss as possible before making any entity changes. The interaction between different types of income and losses is definitely one of the more complex areas of tax law, but understanding it can save you thousands!

Have you considered taking out a loan instead of withdrawing from your annuity? Depending on your needs, a personal loan might be cheaper than paying both taxes and the 10% penalty, especially if you only need the money short-term.

I went through this exact situation about 6 months ago and can confirm what others have said - the 10% penalty definitely applies to earnings from non-qualified annuities if you're under 59½. One thing I wish I had known earlier is that you should also factor in your state's tax treatment. Some states have no income tax on annuity withdrawals, while others tax them as ordinary income. This can significantly impact your overall tax burden. Also, timing matters. If you're close to a lower tax bracket year (maybe due to job loss, reduced income, etc.), it might be worth waiting if possible. The earnings from annuity withdrawals are taxed as ordinary income, not capital gains, so they hit your highest marginal rate. Before I made my withdrawal, I created a spreadsheet comparing the total cost of withdrawal (taxes + penalty + surrender charges) versus other funding options like personal loans or borrowing against my 401k. In my case, a 401k loan actually made more sense for my short-term needs.

Mine just updated today! Filed 1/29, getting DD next Tuesday 💰

Filed mine on 1/22 and still nothing showing up either. Starting to wonder if there's some kind of system issue this year because usually WI is pretty quick compared to other states. Anyone know if they changed their processing systems recently?

Quick question - does anyone know if there are any exceptions to the reasonable compensation requirement? Like if you're running the S corp as a side business and have a full-time job elsewhere?

@Miguel Ramos - Just to add to what others have said about Form 1125-E, yes you absolutely need to file it even with zero compensation reported. But here's something that might help with the bigger picture: consider setting up a payroll system immediately for 2025 to start taking reasonable compensation going forward. The IRS has been increasingly aggressive about S-Corp reasonable compensation audits, especially for profitable companies. Since you crossed $500K in revenue, you're definitely on their radar now. I'd suggest consulting with a CPA who specializes in S-Corps to establish a defensible compensation strategy - they can help you determine what's "reasonable" in your industry and document the rationale. Also keep in mind that once you start taking W-2 wages, you'll have quarterly payroll tax obligations, so factor that into your cash flow planning. Better to be proactive about compliance than deal with penalties and back taxes later.