Anybody know if it's a problem to efile my regular 2023 taxes while I have a pending amended return for 2022? Don't want to mess anything up further.

Thanks everyone for all the helpful advice! This thread has been a lifesaver. I'm feeling way more confident about tackling this now. Based on what I've read here, I think I'm going to try the e-filing route first since my 2022 return qualifies. If TurboTax keeps giving me issues, I'll check out H&R Block or TaxAct like Ravi suggested. The taxr.ai recommendation from Omar and Chloe sounds really interesting too - having something walk me through exactly what changes with the missing 1099-NEC income would definitely help reduce my stress level. And knowing that Claimyr actually works to get through to the IRS is good backup if I get stuck. One quick question - when you guys e-filed your amendments, did you get immediate confirmation that it was accepted, or does it take a few days? I'm just trying to set my expectations for timing. Really appreciate everyone taking the time to share their experiences. This community is amazing!

What tax software does your sister-in-law use? If she's using something decent like TurboTax Business or H&R Block Premium, they usually flag this kind of issue during preparation. I'm surprised they've gotten away with this for so long without the software warning them.

Your instincts are absolutely right to be concerned about this. An S-Corp with $75-250k in annual profits and zero payroll is basically a textbook case of what the IRS looks for in audits. The "reasonable compensation" requirement isn't optional - it's mandatory. Your sister-in-law's tax preparer either doesn't understand S-Corp rules or is being negligent. After 12 years of this, the potential back taxes, penalties, and interest could be substantial. I'd strongly recommend you stay away from any involvement with this business until they fix the payroll issue. Even basic bookkeeping could make you look complicit if this gets audited. The risk just isn't worth it, especially when there are clear red flags that this isn't being handled properly. She really needs to find a new tax professional who understands S-Corp compliance requirements and can help her get this sorted out before the IRS catches up with them.

I'm going through almost the exact same situation with Gig Worker Solutions/Anchor Financial! Filed my SETC amendment in January, got all the same promises about advances and transcript verification, and now they're giving me the runaround about "third parties" not funding anyone who filed before April 1st. What's really frustrating is that they kept moving the goalposts - first it was transcripts, then it was formatting issues with the transcripts, then it was review time, and now suddenly there are funding restrictions they never mentioned before. It feels like they're just stalling. I've already revoked my POA with the IRS and filed complaints with the BBB and CFPB. The CFPB complaint at least got them to respond, though it was mostly generic corporate language about "reviewing policies." One thing I discovered - when I called the IRS directly (took forever to get through), they confirmed that my amendment is progressing normally and there are no issues on their end. The agent even mentioned they've been getting a lot of calls about these advance companies lately, which makes me think this is a widespread problem. At this point I'm just waiting for the IRS to process everything directly. It's slower but at least I know I'll actually get my money without someone taking a 20% cut. Hang in there - sounds like we're all in the same boat with these companies!

I went through something very similar with Anchor Financial earlier this year. Filed my SETC amendment in March and got caught up in the same cycle of excuses - first they needed transcripts, then the transcripts were formatted wrong, then they needed review time, and finally the "third party funding restrictions" excuse. What really opened my eyes was when I started tracking all their promises in writing. I had emails saying I'd get my advance "within 2 business days" from April, then May, then June. When I compiled all of this and sent it to them asking for an explanation of the contradictions, they suddenly stopped responding to my calls altogether. The turning point for me was revoking the POA and working directly with the IRS. Yes, it takes longer, but at least you know exactly where you stand. When I finally got through to an IRS agent, they confirmed my amendment was processing normally and said these advance companies have been a major source of confusion for taxpayers this year. My advice: document everything, revoke that POA immediately, and file complaints with both CFPB and your state's attorney general office. The attorney general complaint actually got more traction for me than the BBB. Most importantly, check your IRS transcript weekly to make sure they haven't tried to redirect your refund to their accounts - I've heard of that happening even after POA revocation. You'll get your money eventually, just directly from the IRS without giving these companies their cut. Hang in there!

I went through this exact situation last year and want to share what I learned to hopefully save others some stress. The key thing to understand is that getting a 1099-K doesn't automatically mean you owe taxes - it's just a reporting document. Here's what worked for me: I created a simple spreadsheet with columns for item sold, original purchase price (estimate if you don't have receipts), sale price, and notes. For most personal items, you'll find you're selling at a loss, which means no taxable income. The important part is being able to demonstrate these were personal items, not business inventory. Things like selling your old iPhone, clothes that don't fit, furniture you're replacing - these are clearly personal items. Keep photos of the items and any communication with buyers that shows the casual nature of the sales. When filing taxes, you report the 1099-K income but then document the corresponding basis (what you originally paid) to show the actual gain/loss. Most tax software handles this pretty well once you understand what you're doing. Don't try to game the system by splitting payments or avoiding the reporting threshold - it's not worth the risk and honestly, if you're just selling personal stuff at a loss, you don't need to worry about owing taxes anyway.

Great question about documentation! For my notes column, I kept it fairly simple but specific enough to be credible. For example: "iPhone 12 - purchased at Apple Store 2021, upgraded to newer model" or "Winter coat - bought at Nordstrom ~2019, no longer fits after weight loss" or "Coffee table - IKEA purchase 2020, moving to smaller apartment." You don't need to submit the spreadsheet with your tax return, but definitely keep it in your records! The IRS recommends keeping supporting documents for at least 3 years in case of questions or audits. I also took photos of items before listing them and saved screenshots of my Venmo transactions - basically creating a paper trail that shows these were legitimate personal sales. The key is having enough detail to demonstrate that these weren't business purchases you were flipping for profit, but actual personal items you owned and used before deciding to sell them. Most of the time the IRS won't ask for this level of detail, but having it organized gives you peace of mind and makes tax filing much smoother.

Has anyone successfully argued that a triple-net lease is actually a "business activity" rather than a "rental activity" for §469 purposes? I read somewhere that when the landlord has minimal services provided (as in a NNN lease), it's harder to argue it's not a rental activity subject to the passive loss limitations.

Great discussion here! One thing I'd add is to be very careful about the timing of your grouping election. As Andre mentioned, this generally needs to be done on your original return for the first year you're engaged in both activities. If you've already filed returns treating these as separate activities, it may be too late to group them unless you can demonstrate a material change in circumstances. Also, regarding the cost segregation study - while it can create significant depreciation deductions, make sure you're considering the potential depreciation recapture implications down the road if you ever sell the property. The accelerated depreciation from cost seg will be subject to recapture at ordinary income rates up to 25%. For documentation purposes, I'd recommend keeping detailed records of: 1) The business necessity of the rental property for your S-Corp operations, 2) Fair market rent analysis to support your rental rates, 3) Time records if you're trying to qualify as a real estate professional, and 4) Evidence of the integrated nature of the two activities. The IRS tends to scrutinize self-rental arrangements pretty closely, so having solid documentation will be crucial.