My correction took exactly 58 days to process in 2023, just shy of the 60-day estimate. You might consider requesting a taxpayer advocate if your PCS move creates a financial hardship. The criteria for hardship assistance includes imminent military moves where unresolved tax issues could cause significant difficulty. You'll need to complete Form 911 and provide documentation of your PCS orders. The advocate service can sometimes expedite processing in cases with firm deadlines like military relocations.

I'm dealing with a similar situation right now! Filed my amended return 3 weeks ago and the uncertainty is killing me. What really caught my attention was @Jacob Smithson mentioning the Military Tax Expert Line - I had no idea that existed! As someone who's also facing a PCS move, that sounds like exactly what I need. Has anyone else used that specific number? I've been calling the regular IRS line and getting nowhere. Also wondering if anyone knows whether the type of correction matters for processing time - mine was for unreported 1099-INT income, so hopefully that's on the simpler side?

Has anyone actually been audited specifically on LLC distributions? I've been taking money out of my real estate LLCs for years and just calling everything "distributions" without much thought. I'm starting to worry I've been doing it wrong.

This is a great question that many real estate LLC owners struggle with. You're right that in a passthrough entity, you're taxed on your allocable share of income regardless of distributions, but the classification still matters for several important reasons: 1. **Basis tracking**: Your outside basis in the LLC (which starts with your initial investment) increases with allocated income and decreases with distributions. If distributions exceed your basis, the excess becomes taxable gain - this is true even in passthrough entities. 2. **Capital account maintenance**: Proper capital account tracking is required by the regulations and affects how profits/losses are allocated among members. Return of capital reduces your capital account without affecting current-year allocations. 3. **Future implications**: If you ever sell your LLC interest or the LLC sells property, having accurate basis and capital account records becomes critical for determining gain/loss. While you don't need to classify each distribution in real-time, I'd recommend working with your accountant to ensure your basis and capital accounts are being tracked properly. Many people think "passthrough = no distribution issues" but that's not entirely accurate. The IRS can definitely scrutinize distribution patterns, especially if they exceed basis or seem inconsistent with reported income.

Friendly reminder that if you're trying to do tax loss harvesting with Robinhood, make sure you're aware of the wash sale rule! If you sold at a loss but bought the same or substantially similar security within 30 days before or after the sale, you can't claim that loss for tax purposes. Made this mistake myself and got a rude awakening at tax time.

This is really helpful info everyone! I'm in a similar boat with significant Robinhood losses last year. Just wanted to add that if you're unsure about whether your situation warrants paying for premium tax software, you can actually calculate your potential tax savings first. Take your net capital loss amount from your 1099-B summary (up to $3,000 for offsetting ordinary income), multiply it by your marginal tax rate, and that's roughly how much you'll save on your tax bill. For example, if you lost $3,000 and you're in the 22% tax bracket, you'd save about $660 in taxes. If the tax savings significantly exceed the cost difference between free and premium software, it's probably worth upgrading. Plus, premium versions usually catch more potential issues that could save you from IRS headaches later.

This is exactly why I always tell people to complete the verification even if the system seems to have moved forward without it. I went through something similar in 2023 - got my refund without verifying, thought I was golden, then boom - CP75C notice in my mailbox 6 weeks later. Had to scramble to get verified through ID.me before they clawed back my refund. The thing is, the IRS has multiple systems that don't always talk to each other perfectly. Your refund processing system might release the funds due to timing constraints, but the Taxpayer Protection Program database still has you flagged. It's like two different departments working off different spreadsheets. My advice? Don't spend that refund money yet. Set it aside in a separate account and proactively complete your ID verification through ID.me or by calling the verification hotline. Better to be safe than sorry, especially when you're relying on that money for expenses. The verification process itself isn't too bad once you get through - just have your documents ready.

This is such a tricky situation! I went through something similar in 2022 - got my refund without verifying, then about 8 weeks later received a CP75 notice requiring verification. The letter gave me 30 days to respond, but I called the TPP line within a week just to be safe. What saved me was keeping detailed records of everything. I took screenshots of my WMR status changes, saved all the emails, and documented the timeline. When I finally got through to an agent, having that documentation helped them understand my case quickly. One thing I learned: even if you get the refund, don't treat it as "cleared" until you've gone at least 6 months without any follow-up notices. The IRS post-processing reviews can take months to catch up, especially during heavy filing seasons. My suggestion would be to call the TPP verification line (833-558-5500) proactively and ask about your specific case. They can tell you definitively whether you still need to verify, even if your online status says "refund received." Better to spend 2 hours on hold now than deal with a surprise clawback later when you've already budgeted that money for expenses.

This is exactly what happened to me last month! I had some dividend income that apparently triggered the verification hold. The status change you're describing - from "still being processed" with the verification notice to just "being processed" without it - is definitely a positive sign. In my case, I got the "approved" status 4 days later and the refund was deposited 2 days after that. The removal of that verification message is key - the IRS system doesn't drop that notice unless they've actually completed whatever identity verification they needed to do. Since you mentioned investment income, that's almost certainly what triggered the extra review, but it sounds like you're through the worst of it now. Keep checking WMR daily and you should see movement soon!

This is really great news! I went through almost the exact same thing earlier this year when I had some stock sales to report for the first time. That status change from "still being processed" with the verification notice to just "being processed" without it is definitely the signal you want to see. The IRS verification system is pretty thorough - they don't remove that verification prompt unless they've actually completed their identity confirmation process. Investment income, especially if it's new for you, almost always triggers some additional review, but it sounds like you've cleared that hurdle. In my experience, once you see that status change, you're typically looking at about 5-10 business days before you see the "approved" status, and then another 1-3 days after that for the actual deposit. The fact that the verification notice completely disappeared is the key indicator here - that doesn't happen unless they're satisfied with whatever checks they needed to run. Keep monitoring WMR daily, but you should be in good shape now. The hardest part (the verification hold) appears to be behind you!