The community wisdom on identity verification seems to be: 1. It's probably legitimate, but the agent was incorrect that "everyone" has to verify 2. You might, possibly, be able to verify before receiving your letter if you speak to the right agent 3. The timeline they gave you is somewhat accurate, though perhaps a bit pessimistic 4. It may be worth trying to call again to see if a different agent gives you different options 5. Once verified, it typically takes about 9 weeks, give or take, for processing to complete In my experience, it's generally best to follow the official process, but it doesn't hurt to try calling again for more information.

I'm going through something very similar right now! Filed January 28th and got the same runaround about needing ID verification. The part about "everyone eventually needing to verify" definitely sounds wrong based on what others are saying here. I've been checking my IRS online account daily and still no verification notice posted there. Did they give you a specific reason for the verification requirement, or was it just a generic "fraud prevention" explanation? I'm debating whether to call back and try to get a different agent like some people mentioned, or just wait it out. The April timeline they gave you seems excessive compared to what others have experienced.

Lifehack: If you file a paper return instead of e-filing, you're much less likely to get flagged for identity verification. I haven't been asked to verify in 5 years since I switched to paper filing. Yes it takes longer initially but no verification hassles.

Ugh, the whole identity verification process is such a nightmare! I went through this exact same thing last year. Filed early, got accepted immediately, then... nothing. Blank transcripts for weeks while I watched everyone else get their refunds. When I finally did the in-person verification, it took about 12 days for my transcript to update and then another 4 days for the actual refund to hit my account. The appointment itself was super quick - maybe 15 minutes - but the waiting afterward was brutal. One thing I learned: call your local office RIGHT when they open (usually 7 AM) to get an appointment. They release new slots each morning and they go fast. Also bring literally every piece of ID you own - I brought driver's license, passport, social security card, birth certificate, W-2s, and a utility bill. They didn't need everything but better safe than sorry! The verification system is completely broken though. How do they expect you to have a code from a letter that doesn't exist? 🤦‍♀️ Good luck with your appointment - hopefully you'll see movement soon!

Has anyone used TurboTax for this? I'm filing for the first time too and wondering if it asks for exact days or gives you some kinda calculator to figure it out.

I went through this exact same situation last year! For my irregular retail schedule, I ended up creating a simple spreadsheet where I listed each month and estimated how many days I typically worked based on what I could remember. I looked at my bank account to see when I got paid (usually every two weeks) and worked backwards from there. Like if I got paid on the 15th and 30th, I knew I probably worked most days in the two weeks leading up to each payday. Also check if your employer has an online portal or app - mine had all my old schedules going back months that I completely forgot about! Even if you can't find exact records, the IRS accepts reasonable estimates as long as you're making a good faith effort. Don't stress too much about being off by a few days here and there.

Have you considered just taking out a HELOC once you own the property? You could use that for the renovations, and the interest would be tax-deductible if used for substantial home improvements on your primary residence. Much simpler than the LLC strategy. Another option: keep track of all renovation costs meticulously as they'll increase your cost basis when you sell, reducing any potential capital gains (though it sounds like that's not your primary concern). The LLC approach creates a lot of complexity - additional tax returns, state filing fees, commercial insurance requirements, potential transfer taxes when you move the property into the LLC, etc. These costs might outweigh any tax benefits.

Just wanted to point out something nobody's mentioned: mortgage interest and property taxes are ALREADY deductible on your personal return if you itemize deductions, even without an LLC. Setting up this complex structure won't give you any additional benefit for those specific expenses. The only potential tax advantage is writing off depreciation and renovation costs, but as others have pointed out, most renovations would be capital improvements depreciated over 27.5 years - not immediate deductions. Also, mortgage lenders almost certainly won't give you a residential mortgage rate for an LLC purchase. You'd likely need a commercial loan at 1-2% higher interest, which would immediately negate many tax benefits.

Not sure if this helps, but I've owned an S-corp for 7 years now and learned some things the hard way. If you've got excess cash, consider a few things: 1) Pay yourself a reasonable bonus (though you'll pay personal income tax) 2) Look into setting up a Solo 401k if you don't have one - much higher contribution limits than SEP IRAs 3) Buy legitimate business assets that depreciate (computers, equipment, vehicle if it qualifies) 4) Prepay some expenses for next year if your cash flow allows The investment thing is tempting but really doesn't help tax-wise in an S-corp structure. I tried similar ideas and my accountant had to set me straight. S-corps are pass-through entities, so the money gets taxed regardless.

I think everyone's missing something here. While buying stocks/ETFs with company money doesn't create a deductible expense, there could be strategic reasons to do it anyway. My S-corp holds some investments as part of our cash management strategy. The key is understanding it won't reduce your current tax liability. Also, talk to your accountant about the Qualified Business Income deduction (Section 199A) - if your business qualifies, it can give you a deduction up to 20% of your qualified business income. Much more valuable than trying to hide money in investments.