This is a really concerning situation that unfortunately happens more than it should in the service industry. Your wife's manager is giving her incorrect advice that could lead to serious tax complications. Here's what's actually required: All employees who receive more than $20 in tips per month must report those tips to their employer. This includes both cash and credit card tips. The employer is then legally required to withhold taxes on those tips and include them on her W-2. What's happening now is that your wife will end up owing a large tax bill when you file, potentially with underpayment penalties. Plus, as others mentioned, unreported tips won't count toward her Social Security earnings record, which could affect her future benefits. I'd strongly recommend she start documenting all tips immediately and attempt to report them to her employer using the proper IRS forms (4070A for daily records, 4070 for monthly reporting). If the manager continues to refuse, make sure you keep records of those attempts - this will help protect you if the IRS has questions later. Don't wait on this - the longer it goes on, the bigger the potential tax problem becomes. It's much better to address it now than face a surprise tax bill and penalties later.

This situation is more common than you'd think, but your wife's manager is definitely giving her bad advice that could cause major problems down the road. Here's the reality: The IRS requires employees who receive more than $20 in tips per month to report those tips to their employer regularly (usually daily or weekly). The employer must then withhold taxes and include the tips on her W-2. This isn't optional - it's the law. What's particularly concerning is that credit card tips are already being processed through the salon's payment system, creating an electronic trail. If the IRS ever looks into this, they'll see those credit card tips but won't see them reported on her W-2, which raises immediate red flags. If your wife continues following her manager's advice, you'll likely face: - A large tax bill when you file (both income tax AND additional Social Security/Medicare taxes on unreported tips) - Potential underpayment penalties - Lost Social Security credits that could affect future benefits - Possible IRS scrutiny since tipped employees in salons are often audited My advice: Start having your wife keep detailed daily records of ALL tips using IRS Form 4070A, then submit monthly reports to her employer using Form 4070. Even if the manager refuses to accept them, keep copies as proof she attempted to report properly. This documentation will protect you both if questions arise later. Don't let this slide any longer - it only gets worse with time!

Thank you for sharing this detailed update, Malik! Your experience perfectly illustrates why so many taxpayers get anxious during refund season - the different IRS systems updating at different times creates unnecessary confusion. The fact that you have an 846 code with a DDD of 4/24 is definitely the most reliable indicator that your refund is on track. I've noticed this same pattern mentioned repeatedly in our community this year, where transcripts update days before WMR catches up. It's reassuring to know that the IRS representative confirmed this is just a system lag rather than any actual processing delay. Hopefully your medical expenses situation gets resolved quickly once that deposit hits! Keep us posted on whether it arrives on schedule - these real-world timeline reports are incredibly helpful for other community members in similar situations.

This is such a helpful thread! I'm currently in a very similar situation - transcript shows 846 with DDD 4/26, but WMR hasn't budged from "still processing" for over a week now. Reading everyone's experiences here is really reassuring, especially knowing that the transcript is the more reliable indicator. Malik, I completely understand the stress of waiting for medical expense funds - I'm in the same boat with some urgent dental work that needs to be done. It sounds like we can trust that DDD date based on what everyone is sharing here. Thanks to everyone who contributed their timelines and experiences - this kind of real-world data is so much more valuable than the generic IRS website information!

I went through this exact situation on February 28th of this year. Called and verified my identity after never receiving the letter. The representative told me everything was good to go, but my transcript and WMR didn't update until March 15th - that's 16 days later. Then my refund was deposited on March 22nd. The most frustrating part was calling back on March 7th when nothing had changed, and being told by a different rep that my verification hadn't been properly processed. Had to go through the whole verification process again! I recommend calling back on April 27th if you don't see any changes, just to confirm the verification was properly recorded in their system.

I'm going through this EXACT same nightmare right now! Verified my identity over the phone 8 days ago and my transcript is still completely blank - it's like my tax return fell into a black hole. The rep assured me everything was good on their end, but clearly their system didn't get the memo. What's really frustrating is that I've been checking my transcript obsessively every morning like it's some kind of lottery ticket. The waiting is killing me because I need this refund to pay off my student loans before the grace period ends. Has anyone tried calling back to double-check that the verification was actually processed correctly? I'm wondering if I should wait the full 2-3 weeks or call sooner to make sure there wasn't a glitch. This whole system feels like it's held together with digital duct tape!

Has anyone used TurboTax for filing with the Danish Double Taxation Agreement? I'm in a similar situation but unsure if their international tax support is good enough or if I need to find a specialized preparer.

I went through this exact same situation last year with a Danish employer! One thing that really helped me was getting a copy of the "Erklæring om skattemæssigt hjemsted" (Certificate of Tax Residence) from the IRS. This is a form that proves you're a US tax resident, which you can submit to your Danish employer to potentially reduce the withholding rate under the treaty. Also, make sure you understand the difference between the 22% your employer is withholding and what Denmark is actually entitled to under the treaty. For employment income, Denmark can tax it since you're working for a Danish company, but the US gets to tax it too since you're a US resident. The treaty just ensures you get credit for the Danish taxes paid when filing your US return. One more tip - keep excellent records of exactly when you performed work and where. If you ever traveled to Denmark for work meetings or training, that could affect how the income is sourced under the treaty. The IRS Publication 901 has a good overview of US tax treaties that helped me understand the basics before diving into the Denmark-specific provisions.

Has anyone actually gotten money back from SBTPG after all this? I've been fighting with them for 10 MONTHS over a $4,200 refund they claim they sent back to the IRS. IRS says they don't have it. I've filed all the forms, done the trace, called hundreds of times... still nothing. I'm about ready to file a lawsuit but don't know if it's even worth the money.

I'm going through almost the exact same situation right now! Filed in February through TurboTax, bank account issues led to SBTPG getting my refund, and they've been giving me the runaround for months. They've told me my check was "in the mail" at least 6 times now with different dates each time. Reading through all these responses is really helpful. I had no idea about requesting the EFT refund notification letter - that sounds like crucial evidence to have. I'm definitely going to call and ask for that today using the exact phrase Oscar mentioned. @Hannah - have you had any luck getting through to the IRS recently? I've been trying for weeks but the hold times are insane. Might have to try that Claimyr service everyone's talking about since I can't afford to spend entire days on hold. The most frustrating part is that SBTPG acts like they're doing you a favor by eventually maybe sending your own money back. It's ridiculous that tax prep companies can partner with these banks that basically hold your refund hostage. There should be better regulations around this whole process.