Is anyone using tax software for this? I tried entering my recharacterization in TurboTax and it doesn't seem to have a clear place to enter this information. It keeps calculating tax on the full conversion amount rather than just the earnings.

I actually went through this exact same situation two years ago and want to emphasize something that might save you headaches later. When you do your backdoor Roth conversion after the recharacterization, make sure your Traditional IRA account is completely empty before the end of the tax year if possible. The reason is the pro-rata rule - if you have any other Traditional IRA money (like old 401k rollovers), it complicates the tax calculation for your backdoor conversion. The IRS looks at all your Traditional IRA balances combined when determining how much of your conversion is taxable. Also, keep really good records of all these transactions with dates and amounts. I had to provide documentation to my tax preparer showing the timeline: original Roth contribution → recharacterization to Traditional → conversion back to Roth. Having clear records made the whole process much smoother and gave me confidence that everything was reported correctly.

If you're still having problems, try filing with a different tax software. I switched from TaxAct to FreeTaxUSA after having similar rejection issues and it worked immediately. Sometimes different tax programs handle the verification process slightly differently.

I went through this exact same nightmare last year! After getting rejected multiple times with IND-031-04, I discovered the issue was that the IRS had made an automatic adjustment to my return that I never knew about. Here's what worked for me: I called the IRS Practitioner Priority Service line (though I'm not a practitioner, they sometimes transfer regular taxpayers). The agent told me that when you get remarried, sometimes the IRS systems take time to sync up all the name/SSN changes, which can cause verification issues even when your AGI is correct. In your case, since you mentioned getting remarried, try using your maiden name exactly as it appeared on last year's return when entering your information, even if you've legally changed it since then. The IRS verification system might still be looking for the old name-SSN combination. Also, double-check that you're not accidentally including any estimated tax payments or withholding amounts in your AGI figure - it should be just the bottom line AGI from last year's Form 1040, line 11. If none of that works, definitely get that transcript. It's frustrating but it's the only way to see exactly what the IRS has on file versus what you think you filed.

I've been through this exact same nightmare! Filed in March and didn't get my refund until July. The "still processing" message on WMR is basically code for "we need something from you but we're not going to tell you what it is clearly." In my case, it turned out they flagged my return for manual review because I had some freelance income that didn't match their records perfectly. No letter, no notification - just months of waiting and checking WMR obsessively. Here's what I wish I had done sooner: Get your Account Transcript from the IRS website (irs.gov/individuals/get-transcript). It shows way more detail than WMR about what's actually happening with your return. Look for any codes like 570 (additional account action pending) or 971 (notice issued). Also, try calling the Taxpayer Advocate Service at 877-777-4778 if you've been waiting more than 21 days past the original processing timeframe. They can sometimes help cut through the bureaucracy when regular IRS customer service can't. Don't panic - it's frustrating but you will get your refund eventually. The IRS is just incredibly slow and bad at communication this year.

I'm going through the exact same thing right now! Filed in March and it's been stuck on "Return Received" since then. The frustration is real - I've been checking WMR almost daily and it never changes. After reading through everyone's experiences here, it sounds like identity verification is the most likely culprit. I'm definitely going to call that 800-830-5084 number that StarStrider mentioned and check my mail more carefully for any IRS letters. It's honestly ridiculous that we have to become detectives just to figure out what's happening with our own tax returns. The WMR tool is basically useless - "still processing" could mean literally anything. At least now I know I'm not alone in this nightmare! Thanks everyone for sharing your experiences and tips. Going to try getting my account transcript too and see if that shows more details than the worthless WMR status page.

Anyone have suggestions for tracking this stuff easily? I'm terrible at keeping receipts and always forget which client meeting was for what by tax time.

I've been dealing with this exact situation for my home-based marketing consultancy. One thing I learned the hard way is to be very specific about the "ordinary and necessary" requirement - the IRS can be picky about what they consider reasonable. I keep a simple spreadsheet with columns for: date, client name, business purpose/topics discussed, food items purchased, alcohol purchased (if any), total cost, and any outcomes from the meeting. This has been a lifesaver during tax prep. Also worth noting - if you're providing meals regularly to the same clients, make sure each meeting has a legitimate business purpose beyond just maintaining relationships. The IRS wants to see actual business discussions that could reasonably lead to income. I learned this when my accountant questioned why I had 8 "client consultation" meals with the same person in 6 months - turned out fine because we were working on a long-term project, but it's good to be prepared to explain the business necessity. One last tip: consider the optics of your alcohol purchases. A $25 bottle of wine for a 2-hour evening business discussion is very different from expensive cocktails. Keep it professional and proportionate to the meeting's importance.

Dealing with this exact issue was a nightmare for me last year. One thing nobody mentioned yet - make sure you have the CFC's "tested income" calculation done correctly. My accountant initially included income from active business that should have been excluded from GILTI.

As someone who's been through multiple CFC acquisitions, I want to emphasize something crucial that could save you significant money - make sure you get the purchase price allocation right in your acquisition documents. The way you allocate the purchase price between tangible assets, intangible assets, and goodwill can dramatically affect your future GILTI calculations. If you can allocate more of the purchase price to depreciable tangible property, you'll get a larger "qualified business asset investment" (QBAI) deduction against your GILTI inclusion in future years. This is especially important for December acquisitions since you'll be dealing with GILTI calculations immediately. Many buyers overlook this during the transaction and end up paying much more GILTI tax than necessary. The regulations under Section 951A allow for significant planning opportunities if you structure the acquisition properly from the start. Also, don't forget to make the high-tax election under Section 951A(c)(2)(A)(i)(III) if your CFC paid substantial foreign taxes. This can completely eliminate GILTI on high-taxed income, but you need to make the election with your return - it's not automatic.