Dont forget the $205 application fee for OIC! I almost submitted without it which would have caused immediate rejection. Also they require the first payment with submission if ur doing periodic payment option.

Based on your numbers, I think your $6,500 offer is unfortunately too low. I went through this process myself last year with about $35k in debt and similar asset levels to yours. The IRS formula is pretty rigid - they'll look at your $8k savings + vehicle equity + future income potential. Even with exemptions for necessary transportation and living expenses, you're probably looking at needing to offer closer to $12k-15k minimum. One thing that helped me was documenting any health issues, job market limitations, or other factors that genuinely limit your future earning potential. If your business failure was due to industry-specific issues that make it unlikely you'll return to that income level, document that thoroughly. Also consider the payment timeline - they calculate differently for lump sum vs. periodic payments. Sometimes a periodic payment plan over 2 years can actually result in a lower total amount than an installment agreement over 6+ years. Run the numbers both ways before deciding. The process takes months either way, so make sure your offer is realistic from the start. A rejected OIC can actually make your situation worse by adding penalties and interest during the review period.

I'm dealing with almost the exact same timeline! Filed 2/18, accepted same day, and got the dreaded "Still Being Processed" message on 3/17. Called yesterday and got the same vague "minor error" explanation with an estimated 10-week resolution timeframe. What's frustrating is that my transcript shows absolutely nothing - no error codes, no notices, just radio silence. The agent couldn't tell me if it was a math issue, document verification, or what. It's like being told your package is delayed due to "shipping reasons" - completely unhelpful. Has anyone had success getting more specific information by calling multiple times? I'm wondering if different agents have access to different levels of detail in the system.

I've been tracking these "minor error" delays extensively this season, and what you're experiencing is unfortunately becoming the norm rather than the exception. The IRS's Error Resolution System is severely backlogged - they're currently processing returns at about 60% of normal capacity due to staffing issues and system updates. Here's what I've learned from analyzing similar cases: The "minor error" designation typically falls into one of four categories based on internal processing codes - math verification (TC 290), income matching discrepancies (TC 291), dependent verification (TC 766), or random audit selection (TC 420). The fact that no correspondence has been generated yet suggests it's likely in the first two categories, which are generally resolved without taxpayer action required. Your 4/25 timeline is realistic based on current processing patterns. I'd recommend setting up an IRS online account if you haven't already - sometimes transcript updates appear there 1-2 weeks before WMR status changes. Also, document every call you make (date, time, agent reference number) in case you need to escalate to Taxpayer Advocate Services later. The silver lining? In my tracking of 200+ similar cases this season, 89% were resolved within the quoted timeframe with no reduction in refund amount. Many actually received small interest payments for the delay.

Another thing to consider is that some states automatically issue you a refund even if you don't file! In my state, if your W-2 withholding info is reported to them and it shows you overpaid, they sometimes just send you a check. Happened to me 2 years ago.

I went through this exact same dilemma last year! Here's what I found out after doing some research: if you don't file when the state owes you money, there's typically no penalty at all. The worst that happens is you forfeit your refund after the statute of limitations runs out (usually 3-4 years). However, I'd recommend double-checking a couple things first. Make sure you're not actually required to file in your state regardless of refund amount - some states have mandatory filing thresholds based on income. Also, if you have any estimated tax payments or credits you're not accounting for, you might owe more than you think. One trick I learned: some tax software lets you prepare your return completely for free, then only charges if you actually file. So you could double-check your calculations without paying anything. If it confirms you're only getting $11 back and filing costs $15, then yeah, skip it and pocket the difference!

One thing nobody's mentioned - if your LLC is set up correctly, have you considered having the business take out a loan, then personally guaranteeing it? Rates might be higher, but you avoid the retirement tax hit entirely. Also, the interest would be deductible as a business expense.

Another option worth exploring is equipment financing specifically - many lenders offer competitive rates for business equipment purchases, and you can often finance 80-100% of the equipment cost with the equipment itself as collateral. This keeps your retirement funds intact while still getting the equipment you need. I'd also suggest running the numbers on tax-adjusted returns. That 300% return over 8-10 years might look different when you factor in the immediate tax hit from the withdrawal (potentially 22-32% depending on your bracket) plus the 10% penalty if you're under 59½. Don't forget to account for lost compound growth on those retirement funds over the same period. If you do decide to proceed with the withdrawal, consider timing it strategically - maybe split it across two tax years to avoid bumping into a higher bracket, or coordinate with other business expenses to maximize your deductions in the withdrawal year.

I successfully claimed this credit on my 2023 return that I filed in February. I kept meticulous records of everything - the purchase agreement showing the VIN, manufacturer's certification that it qualified, proof of when I took delivery, etc. The dealer even provided a specific form certifying the vehicle met the North American assembly requirements. My return was processed without any delays and I got the full $7,500 credit. Just make sure you're buying new, not used (used EVs have a different credit with different rules). The whole process was much smoother than I expected!

Great question! You actually have plenty of time since this would go on your 2024 tax return (due April 15, 2025, not this April). A few key points to help with your decision: **Income Limits**: At $140k, you're under the $150k single filer limit, so you're good there. **Tesla Model 3 Eligibility**: Most 2024 Model 3s qualify for the full $7,500 credit, but double-check the specific configuration you're considering against the IRS eligible vehicles list to make sure it meets both assembly AND battery component requirements. **MSRP Cap**: Make sure your configured Model 3 stays under the $55,000 MSRP limit for sedans - this is a hard cutoff with no partial credit. **Documentation**: Save everything from the purchase - VIN, purchase agreement, dealer certification of eligibility, delivery date. You can absolutely handle Form 8936 yourself when you file next year - it's pretty straightforward. The main thing is verifying your specific vehicle configuration qualifies before you buy. Tesla's website should show which trims/options are eligible, or you can check the IRS manufacturer list with your intended VIN.