For anyone going through this process, here's what you need to know: Once the examiner receives your signed 4549, they'll close their part of the case within about a week. Then it goes to a different department for processing the actual adjustment. Your transcript will update before WMR does - you'll see a series of codes (typically 420 for audit, then 421 for audit closed, then eventually 846 for refund issued). The whole process usually takes 3-4 weeks from signing to refund if everything goes smoothly.

Just went through this myself! Signed my 4549 about 6 weeks ago and can share my timeline. Week 1-2: Nothing visible anywhere. Week 3: Transcript showed TC 420 (exam start) and TC 421 (exam closed). Week 4: TC 290 appeared (adjustment processed). Week 5: TC 971 (notice issued) and finally TC 846 (refund issued). Week 6: Money hit my account. The key thing I learned is that WMR doesn't update until very late in the process - your transcript will show movement way before WMR does. Also, don't panic if it takes longer than expected - mine got delayed because of some internal review process they do for larger adjustments. Hang in there!

Just to add to what others have said - I made the exact same mistake when I started filing for my S-Corp. One thing that helped me was looking at the language at the top of Schedule B which specifically says "Report Your Tax Liability for Each Pay Date..." not your gross wages. I use a simple spreadsheet now where I track: 1) Pay date 2) Federal income tax withheld 3) Social Security (both parts) 4) Medicare (both parts) 5) Total (which goes on Schedule B) Makes it super easy to keep everything straight.

I went through this exact same confusion last year with my S-Corp! The key thing that finally clicked for me was understanding that Schedule B is specifically about your TAX LIABILITY, not your payroll amounts. Here's what I learned the hard way: For each pay date, you need to add up: - Federal income tax you withheld from employees - Employee portion of Social Security tax (6.2%) - Employer portion of Social Security tax (6.2%) - Employee portion of Medicare tax (1.45%) - Employer portion of Medicare tax (1.45%) That total is what goes on Schedule B for each pay date. So if you paid $10,000 in wages on March 15th, you're not putting $10,000 on Schedule B - you're putting the total tax liability that resulted from that $10,000 payroll. The IRS agent who told you that you were doing it wrong probably saw that you were listing gross wages instead of tax liabilities. It's a super common mistake that almost everyone makes initially. Once you switch to tracking the actual tax amounts, it becomes much clearer.

I had the same issue back in January. Turns out they mailed a check even tho I put direct deposit info. Keep an eye on your mailbox

That "return has been paid" message is confusing wording but it usually means your refund has been processed and issued. Since you filed so early (January 6th), you're probably in the first wave of refunds. Check both your bank account AND mailbox - sometimes the IRS switches to paper check if there's any issue with direct deposit info. If it's been more than 21 days since that status appeared, definitely call them using the early morning trick someone mentioned above!

Has anyone actually calculated if it's worth the hassle? If we're talking about a 20% ownership in a French vacation property, what's the likely capital gain here? France's tax rate on real estate capital gains is around 19% plus social charges of about 17.2% if I remember correctly, so around 36.2% total. If the gain is something like $50,000 (just guessing), that's about $18,100 in French tax. Is it really worth all this complicated tax planning just to try to recover that? Sometimes I think we get so caught up in optimizing taxes that we forget to consider if the time and stress are worth the potential savings.

I've been following this thread with great interest because I'm dealing with something similar with rental property in Ireland. One thing I haven't seen mentioned yet is the potential impact of state taxes on this calculation. If you're in a state with capital gains tax (like California or New York), you might actually have more flexibility than you think. Even if your federal capital gains tax liability is zero due to the loss carryover, you could still owe state capital gains tax on the French property gain. This creates an interesting opportunity - you could potentially use part of your federal loss carryover to offset other gains (like from your LLC interest), while letting the French gain be subject to both federal and state tax. This would give you more "tax capacity" to utilize the foreign tax credit against. The math gets complicated because you'd need to consider whether the foreign tax credit limitation allows you to credit the French taxes against your combined federal and state liability. But it's definitely worth exploring, especially if you're in a high-tax state. Also, have you considered whether the French property qualifies for any step-up in basis when your husband inherited it? Depending on French inheritance law and the US-France tax treaty, there might be less gain than you're expecting.

Has anyone used TurboTax Self-Employed for this situation? We're trying to figure out if we need to upgrade from the regular version we've used in past years. My husband just started doing photography on the side.

Great question! Your wife can definitely start a sole proprietorship while you continue your full-time job. Since you file jointly, you'll include her business income and expenses on Schedule C of your joint return - no need for separate filings. A few key things to keep in mind: 1. **Self-employment tax**: Your wife will need to pay self-employment tax (15.3%) on any profit from the business, which covers Social Security and Medicare taxes. 2. **Quarterly estimated taxes**: If she expects to owe $1,000 or more in taxes from the business, she should make quarterly payments to avoid penalties. You can use Form 1040-ES to calculate these. 3. **Business losses**: Yes, any business losses can offset your joint income, potentially lowering your overall tax bill. Just make sure to keep detailed records to show it's a legitimate business and not a hobby. 4. **Record keeping**: Get a separate business bank account and credit card, save all receipts, and track mileage for business use. Good documentation is crucial, especially for deductions like home office expenses. Since your combined income will likely be higher with the business, consider setting aside 25-30% of her business income for taxes to be safe. You might also want to adjust your W-4 withholding to cover the additional tax liability instead of making quarterly payments.