Has anyone here actually received their sales tax permit deposit back? My state (Florida) promised a refund after 3 years too, but when the time came they claimed I had filed one of my monthly returns 2 days late in year 2, so they kept the entire $500 deposit. Wondering if this is common practice.

Great question! I went through this exact same situation with my LLC last year. The advice about treating it as an asset is spot on - don't expense it initially since you're expecting to get it back. I set up a "Deposits - Refundable" asset account in my accounting software and recorded the $500 there. One thing I'd add is to keep really good documentation about the deposit terms and your compliance with the requirements. Take screenshots of your filing confirmations, payment receipts, etc. Some states are pretty strict about the "good standing" requirements and will keep your deposit for minor issues. Also, if you're using QuickBooks, you can set up a reminder for when the 3-year period is almost up so you can proactively follow up on getting your refund rather than waiting for them to process it automatically.

Just a quick tip - when I had to do identity verification last year, I found that the IRS phone lines were much less busy if you call on Tuesday or Wednesday during the 2nd week of the month. For some reason the first week of the month and Mondays/Fridays are absolute nightmares. Also, have you checked if you can verify your identity online through ID.me? Some IRS services now use this instead of requiring a phone call.

I completely understand your frustration - I went through this exact same nightmare about 6 months ago with a 6330C notice. After reading through all the suggestions here, I'd recommend trying multiple approaches simultaneously since you're running short on time. First, definitely try the early morning call strategy (7am sharp) for the next 2-3 days. Set multiple alarms and be ready to dial the second they open. Tuesday and Wednesday mornings tend to have slightly better odds. Second, call 844-545-5640 TODAY to schedule an in-person appointment at your local Taxpayer Assistance Center. Even if you get through on the phone first, having a backup appointment scheduled will give you peace of mind. These appointments can often be scheduled 1-2 weeks out, which should still be within your 30-day window. Third, if you're approaching your deadline and nothing else works, contact the Taxpayer Advocate Service at 877-777-4778. Mention that you're facing financial hardship due to the delayed refund (medical bills) and that you've been unable to reach the verification line despite multiple attempts. They can escalate your case. Don't panic about the 30-day deadline - while it's important to try to meet it, the IRS does have some flexibility, especially if you can document your attempts to reach them. Keep a log of when you've called and any reference numbers you receive. You'll get through this! The identity verification process itself is usually quick once you actually connect with someone.

Has anybody actually calculated the real risk here? If an audit is like 1% chance for most people, and then the chance they'd disallow future deductions because of a missing form when the K-1 supports everything is probably another small percentage... we're talking really small odds of a problem, right? I'm in a similar situation and trying to figure out if it's worth my time and the $95 my accountant would charge just to file an amended form.

I'm dealing with a very similar situation right now with Form 8582 for passive losses. Reading through everyone's responses has been really helpful - especially the practical experiences shared here. What really resonates with me is the advice about keeping a completed Form 6198 with your records even if you don't file an amendment. That seems like the perfect middle ground - you have the documentation ready if needed, but you avoid the hassle and potential scrutiny of filing an amended return when your tax liability is already correct. The point about audit statistics is also reassuring. Given how low the audit rates are, and considering that your K-1 provides the supporting documentation for your at-risk calculations, the actual risk of problems seems minimal. I think I'm leaning toward the "keep good records and move on" approach rather than amending just for a missing form. Thanks to everyone who shared their real-world experiences - it's so much more valuable than generic advice!

Anyone else find that these tax software options don't handle the health insurance deduction for S Corp owners very well? That's been my biggest frustration with TaxAct.

I switched from TaxAct to TurboTax for our S Corp last year and it was definitely worth it! Like you, I was getting frustrated with TaxAct's outdated interface. TurboTax handles the S Corp passthrough income much more smoothly - especially the flow from the business return to personal. The interview process walks you through everything step by step, which helped me catch some deductions I'd been missing (like properly calculating the home office percentage for business use). One specific advantage: TurboTax does a better job explaining the reasonable salary requirements for S Corp owners taking distributions. This is crucial since the IRS scrutinizes this area heavily with 1099 income flowing through S Corps. The price difference is noticeable, but given that you're already doing the accounting work yourself, the time savings and reduced stress during tax season made it worthwhile for us. Plus their customer support is significantly better if you run into issues. If you're comfortable with tax concepts already, you might also want to double-check your past returns to make sure you haven't missed anything over the years with TaxAct's less intuitive interface.

I was in the exact same boat last month! Filed Jan 30th and stuck on pending for 5 weeks. I called my tax preparer who said not to worry. Then suddenly on March 7th, it went from pending straight to approved and I had my refund on March 10th. No explanation for the delay, but everything worked out fine. Did you claim any credits or deductions that might trigger extra review?

I'm experiencing something very similar - filed on February 2nd and still showing pending status after 5 weeks. Like you, I've never had delays this long in previous years. I've been checking Where's My Refund daily and it just keeps saying "Your return is being processed." I called the IRS hotline twice but couldn't get through after waiting over an hour each time. My return is fairly straightforward - just W-2 income and standard deduction - so I'm not sure what could be causing the holdup. It's reassuring to know others are facing the same issue, though I wish we had more clarity on when this will resolve.