Just want to clarify something important that nobody mentioned yet - the distribution code in Box 7 of your 1099-R matters a lot for how this gets reported! What code is shown on your form? If it's code G (Direct Rollover), the state reporting is handled differently than if it's code 7 (Normal Distribution) or 2 (Early Distribution).

I just went through this exact scenario last month with my Roth conversion. Here's what I learned after consulting with my tax preparer: The empty boxes 14 and 16 are actually correct for your situation. Since you properly separated the pre-tax growth (rolled to employer plan) from the after-tax contributions (converted to Roth), there's no state tax withholding needed on the conversion portion. However, you absolutely DO need to report this on your state return. The fact that Box 15 shows your state code means the transaction was reported to your state tax authority. Here's the process: 1. Report the full Box 2 amount as a retirement distribution 2. Use your state's equivalent of the federal Form 8606 to show this was from after-tax contributions 3. The distribution will be reported but marked as non-taxable I made the mistake of not reporting it initially because the boxes were empty, and I got a notice from my state asking about the "unreported" distribution they had on file. Had to file an amended return to fix it. Your strategy of rolling the growth portion to your employer plan first was smart - it made the conversion much cleaner from a tax perspective!

whatever you do DONT AMEND your return thinking that will speed things up. That'll put you at the back of an even longer line. Just wait it out. The IRS is slow but they'll get to it eventually.

Filed March 15th here and in the exact same boat - all zeros on transcript, no updates, starting to panic about bills too. Really glad to see I'm not alone in this mess. Reading through all these responses is actually helping my anxiety a bit. Sounds like 6-8 weeks is the new normal this year which is absolutely ridiculous but at least now I know what to expect. Going to try some of these suggestions like checking the Return Transcript separately and maybe that Claimyr thing if I get desperate enough. Thanks everyone for sharing your experiences!

Just a quick note from someone who learned this the hard way - make sure you're collecting W-9 forms from anyone you might need to issue a 1099 to BEFORE you pay them. I had a nightmare situation last tax season where I needed to issue 1099s but didn't have TINs for everyone. For your property owner and contractor situations, get those W-9s now so you have their info when tax time comes. You don't want to be chasing people down in January!

For the Turo situation, I think you might be missing potential deductions. If you received $13,500 for damages and paid $13,500 for repairs, you should record both transactions. Report the $13,500 damage payment as income (Turo will likely issue a 1099-K), and then deduct the $13,500 repair cost as a business expense. Even though it's a wash income-wise, documenting both sides properly will keep your books clean and defendable if you're ever audited. Ask your repair shop for an itemized receipt for your records.

Has anyone actually been audited over this specific issue? I'm in the same boat (S-corp with rental property, managed by property management company) and my CPA says no W-2 needed either. Just wondering if this is something the IRS actually targets or if it's more theoretical risk?

I'm dealing with the exact same situation and honestly, the conflicting advice is driving me crazy! My S-corp has a rental property that's fully managed by a property management company, and I literally just sign the annual tax forms and pay insurance. That's it. My CPA insists no W-2 is needed since I'm not materially participating in the business operations, but then I read horror stories online about people getting audited and owing back taxes. The gray area nature of this rule is so frustrating. What's really concerning me is that even if my CPA is technically correct, will the IRS see it the same way during an audit? I'm starting to think it might be worth just taking a small salary (maybe $2-3k annually) just to have documentation that I'm following the rules, even if it's not technically required in my situation. Has anyone found any definitive IRS guidance specifically about S-corps with fully managed rental properties? The general "reasonable compensation" rules seem to be written more for active businesses, not passive rental investments.

I've been helping foreign entrepreneurs navigate LLC closures for years, and your brother's situation is very common. The most important thing to understand is that "going dark" by ignoring renewal notices creates way more problems than it solves, especially with foreign ownership. Here's the reality: even with just $75 in revenue, your brother likely has several filing obligations that won't disappear with administrative dissolution. The IRS doesn't care if the state dissolves the LLC - they maintain their own records and requirements. For a foreign-owned LLC, even one that made minimal income, you're typically looking at: - Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation) - Pro forma Form 1120 (if required with 5472) - Final Form 1040-NR for your brother personally - State dissolution paperwork The Form 5472 penalty alone is $25,000 per year for non-filing, which obviously dwarfs any cost savings from avoiding proper closure. My advice: start the proper dissolution process now while you have 10 months before renewal. File the state dissolution paperwork first (usually under $100), then handle the final tax filings. The total cost of doing this right is typically under $500 if you use online tools, versus thousands in potential penalties and professional fees later. Don't let the current financial constraints force a decision that could cost exponentially more down the road.

As someone who just went through this exact process last month with my German-owned LLC, I can confirm that the $500 estimate is pretty accurate if you handle most of it yourself with online tools. Here's my actual breakdown: - State dissolution filing (Delaware): $220 - taxr.ai subscription for the tax forms: $89 - Bank account closure fees: $25 Total: $334 The taxr.ai platform absolutely handled the Form 5472 and pro forma Form 1120 - that's exactly why I chose it after reading similar threads. It walked me through each section and even caught a mistake I made in the ownership percentage reporting. The system is specifically designed for these foreign ownership scenarios. What really impressed me was how it handled the timing. It recommended I complete all tax filings before submitting the state dissolution paperwork, which several people here have mentioned is important. The platform also generated a dissolution checklist specific to my state's requirements. One tip: start with the free assessment on taxr.ai to see exactly which forms your brother needs before committing to anything. In my case, it confirmed I needed the 5472/1120 combo plus a final 1040-NR, but it might be different depending on his specific situation and the state where the LLC was formed. The $25,000 penalty is real and they're not kidding about enforcement - I know someone who got hit with it two years after their "ghost dissolution" attempt. Worth every penny to do this right.