I went through the exact same thing last year! The IRS letter never showed up, and I was panicking about not being able to file my taxes. Here's what worked for me: I called the IRS early in the morning (like 7:30 AM) and got through pretty quickly. They couldn't give me the verification code over the phone, but they were able to verify my identity using other methods - they asked me questions about my previous tax returns, addresses, and some financial info. They then sent a new letter to my current address, which arrived within 10 business days. Make sure you have your Social Security card, driver's license, and last year's tax return handy when you call. Also, double-check that they have your correct mailing address! Good luck - you got this! 💪

I had a similar issue a few months ago! What helped me was actually going to my local IRS Taxpayer Assistance Center in person. I know it's a pain, but they were able to verify my identity on the spot using multiple forms of ID and some questions about my tax history. You can find locations on the IRS website - just make sure to bring your Social Security card, driver's license, and copies of recent tax returns. They scheduled me an appointment within a week and the whole process took about 45 minutes. Way faster than waiting for another letter that might get lost in the mail again! 📋

Your situation is exactly why I always recommend getting a second opinion on complex retirement plan setups. The controlled group rules are incredibly strict, and I've seen too many business owners get burned by setting up non-compliant plans. From what you've described, your CPA's advice about a Self-Directed 401K at just the S-Corp level is almost certainly incorrect. The IRS doesn't care about the technical legal separation between your LLC and S-Corp - they look at the economic reality of common ownership and control. Since you own both entities and there's a clear business relationship (guaranteed payments flowing between them), they're going to be treated as a single employer for retirement plan purposes. This means any qualified retirement plan would need to include all eligible employees across both the LLC and S-Corp. You can't cherry-pick which employees to include just because they're paid by different entities. I'd strongly recommend getting this sorted out before moving forward. The penalties for maintaining a non-compliant qualified retirement plan can be severe, including plan disqualification and immediate taxation of all contributions. Better to get it right from the start than try to fix it later.

I went through almost the exact same situation last year with my LLC/S-Corp structure and employees split between entities. Your gut feeling is absolutely correct - the Self-Directed 401K at just the S-Corp level won't work due to controlled group rules. What I ended up doing was setting up a Safe Harbor 401K that covers all employees across both entities. Yes, it means I have to make contributions for my LLC employees too, but the tax benefits and compliance certainty were worth it. The Safe Harbor provisions also eliminated most of the annual testing requirements that can be problematic with these complex structures. I worked with a TPA who specialized in controlled group situations, and they were able to design the plan so that my personal contribution capacity was still maximized within the legal requirements. It's not as flexible as a Self-Directed Solo 401K, but it's completely compliant and gives me peace of mind. The key lesson I learned: when you have common ownership between entities, the IRS treats them as one employer for benefit plan purposes, period. There's really no way around it, despite what some CPAs might suggest. Better to set up a compliant plan from the start than deal with the nightmare of fixing a non-compliant one later.

The IRS is like a slow-moving train this year - once it's on the tracks, it'll get to the station, but nobody can tell you exactly when. I had the exact same codes appear on 2/10, called on 2/15, got the same "still processing" line, then magically had my DDD appear on 2/17 with the money in my account on 2/22. It's like they have a script they're required to read regardless of what your account actually shows. The codes you have are like seeing the train on the horizon - it's definitely coming, but the conductor won't announce the arrival time until it's pulling into the station.

Your situation sounds very similar to mine from last year! I was also a cycle 0605 filer and got those exact same codes about a week before my refund actually hit my account. The IRS phone agents are trained to say "still processing" until the very last step when the 846 code appears with your direct deposit date. It's frustrating because technically your return IS processed - they're just waiting to release the funds due to PATH Act requirements. I'd recommend checking your transcript early Friday morning since that's when most 0605 updates happen. The "significant movement" comment from the agent is actually encouraging - they usually don't mention timelines unless something is about to happen. Hang in there, you're almost at the finish line!

Be careful... a friend of mine ignored a missing W-2 and got a CP2000 notice from the IRS about 8 months later. They calculated what he owed PLUS interest AND a 20% accuracy penalty. Ended up being WAY more expensive than just filing the amendment would have been. Just pay your tax guy or use one of the options others suggested. Not worth the stress of waiting for the IRS to catch it.

You absolutely need to file that amendment - don't even think about ignoring it! The IRS gets copies of all W-2s directly from employers, so they WILL catch this discrepancy eventually. It's not a matter of if, but when. I work in tax preparation and see this situation all the time. When clients try to "wait it out," they almost always end up paying more in penalties and interest than they would have spent on just filing the amendment properly. The IRS has automated systems that match W-2s to tax returns, and a $2,800 discrepancy will definitely trigger a notice. Here's what you need to know: File Form 1040-X as soon as possible. You'll likely owe additional tax on that $2,800 (probably around $300-600 depending on your tax bracket), plus you'll need to pay back part of your refund. But if you file the amendment before the IRS catches it, you'll avoid the hefty accuracy-related penalties that can be 20% of the underpayment. If $175 seems steep for your tax preparer, you can definitely do this yourself or use some of the tools others mentioned. The 1040-X form has pretty clear instructions, and since you're just adding income, it's relatively straightforward. Don't let the cost of fixing it now turn into a much bigger problem later!

Pro tip from someone who deals with this every year (tax accountant here, though not YOUR tax accountant): Most tax refund cards have a bill pay feature that lets you "pay" your own bank account as if it were a bill. Clever workaround! 😉 Just add your checking account as a payee using your account/routing numbers. Usually has higher limits than direct transfers and sometimes lower fees too. The banking system doesn't know or care that you're paying yourself.

I totally understand your frustration with the prepaid card situation! I went through something similar last year. Here's what worked for me: First, call the customer service number on the back of your card to check your daily/weekly transfer limits - they're usually higher than ATM limits. Most cards allow $2,000-$5,000 per day for ACH transfers to your bank account through their online portal or mobile app. The transfer usually takes 1-3 business days and costs around $1-5. If you haven't activated online access yet, do that first - you'll need the card number, security code, and usually some personal verification info. Also double-check that the IRS has your correct bank account info for future refunds by updating your direct deposit information on IRS.gov. Hope this helps!