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fr fr the irs be playing games with our money š¤”
Dont worry bout it, perfectly normal. Each tax authority does their own thing on their own timeline. State systems usually process faster cuz they're dealing with way less returns than the IRS who's gotta handle ALL federal returns for the whole country.
This is really helpful information everyone! I'm in a similar boat - been paying a TPA for years for my Solo 401k when my balance has been under $200k the whole time. Based on what I'm reading here, it sounds like I have a few options: 1. File one final 5500-SF marking it as terminated/final to avoid any IRS questions later 2. Just stop filing and deal with any potential inquiry letter (which sounds pretty manageable based on Cameron's example) 3. Keep filing even though I'm not required to, just for peace of mind I'm leaning toward option 1 - filing a final form and then stopping. Has anyone actually done this termination approach? What exactly do you check on the form to indicate it's your final filing? Also, for those who've used the EFAST2 system - do you need any special software or can you do everything through their web portal?
Great question about the termination approach! I actually did exactly this last year. On the 5500-SF form, there's a checkbox in the header section that says "Final Return/Report" - you just check that box and it indicates this is your last filing. You still fill out the rest of the form normally with your year-end data. As for EFAST2, it's completely web-based - no special software needed. You just create an account on their portal and can do everything through your browser. The system walks you through each section of the form step by step. Just make sure you have all your plan documents and year-end statements handy before you start. I'd definitely recommend option 1 as well. It's the cleanest approach and eliminates any potential confusion down the road. Plus you get the satisfaction of officially "closing the loop" on your filing history!
I went through this exact situation two years ago! I had been paying my TPA about $800/year for my Solo 401k when my balance was only around $180k. Like you, I felt like I was throwing money away. I ended up doing exactly what Sophia mentioned - filed one final 5500-SF with the "Final Return/Report" box checked. It was actually pretty straightforward once I got into the EFAST2 system. The hardest part was just getting over my initial nervousness about doing it myself. One thing I wish I had known earlier: you can actually request copies of your previous filings from the DOL to use as a reference. This helped me understand what my TPA had been submitting and made me more confident about filling out my final form correctly. Since then, I've had zero issues with the IRS. No letters, no questions, nothing. I've saved over $1,600 in TPA fees so far and honestly wish I had made the switch sooner. The peace of mind from properly closing out the filing history was definitely worth the small effort of doing that final form myself.
This is exactly the kind of real-world experience I was hoping to hear about! $800/year really does add up - I'm paying about the same to my TPA and it's been bothering me for a while now. How did you go about requesting copies of your previous filings from the DOL? Is there a specific form or process for that? Having those as a reference would definitely make me feel more confident about doing the final filing correctly. Also, when you checked the "Final Return/Report" box, did you need to provide any explanation or just checking that box was sufficient? I want to make sure I handle this properly so there's no confusion later. Thanks for sharing your experience - it's really encouraging to hear from someone who actually went through this process successfully!
Same situation here! Filed both state and federal on Feb 3rd, got my state refund last week but federal is still showing "processing" on WMR. From what I've read, they really are completely separate systems so timing can vary wildly. Some people get federal first, others get state first. I'm trying not to stress about it but the waiting is killing me! š
Have you checked to see if your provider is actually licensed? In my state, licensed providers have to give you their tax info. If they're unlicensed, you might want to report them to your state childcare licensing agency too, not just the IRS. Unlicensed providers can be a serious safety concern.
This is such a frustrating situation, but you absolutely have legal options here. The fact that your provider is refusing to provide their SSN and misrepresenting the amount you paid them is a huge red flag. First, document EVERYTHING - save all your Venmo receipts, bank statements, and any text/email conversations you've had with the provider. Take screenshots of your payment history before anything gets deleted. You can definitely still claim the Child and Dependent Care Credit. File Form 2441 and write "REFUSED" where the provider's SSN should go. Include their name, address, and the actual amount you paid ($19,500). The IRS has procedures for exactly this situation. Also consider filing Form 3949-A to report suspected tax fraud. If your provider is lying about how much they received from you, they're likely doing it with other families too. This is tax evasion, plain and simple. One more thing - check if your state requires daycare providers to be licensed. If they are supposed to be licensed and aren't, you should report that to your state's childcare licensing agency as well. Licensed providers are typically required to provide tax information to parents. Don't let this provider cheat you out of your legitimate tax credit. You paid that money and you deserve the deduction!
Isabella Silva
lmaoo the irs playing games while the state already sending money šāāļøšØ
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Diego Rojas
Same here! Got my state DDD for this Tuesday but federal is still showing PATH hold. At least we know the state side is moving fast this year. Hoping federal starts releasing after the 15th like usual š¤
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