One additional thing to check - look at the tax year carefully. Sometimes people think the Letter 12C is for their current return when it's actually for a previous year. I made that mistake and sent in 2022 documents when they were asking about 2020, which caused even more delays.

Great advice from everyone here! Just wanted to add that if you're dealing with unemployment income like you mentioned, make sure you have your 1099-G form ready. The IRS often requests this for Letter 12C situations because unemployment compensation affects your adjusted gross income and tax liability. Also, since you mentioned getting all three stimulus payments, double-check that the amounts you reported on your return match what the IRS has on file. Sometimes there are discrepancies in their records about Economic Impact Payments that can trigger these verification requests. One more tip - if you claimed the Recovery Rebate Credit for any missing stimulus money, they'll definitely want documentation of what payments you actually received versus what you claimed. Keep records of any IRS letters you received about stimulus payments, as these can serve as supporting documentation. The 8+ month delay is unfortunately pretty common for these verification cases, but once you get them everything they need, it usually processes within 4-6 weeks. Hang in there!

I went through the exact same thing with a Letter 12C for my 2020 taxes! It's definitely stressful when you're not sure what they want. From my experience, the key is to read the letter very carefully - they usually specify exactly which tax year and which forms they need. For most Letter 12C requests, you'll need: - The W2 you mentioned (make sure it's for 2020) - Any 1099 forms if you had other income - A copy of the letter itself - Sometimes proof of deductions if that's what they're questioning Don't panic about the timeline - even if you're past the 30 days, they usually accept late responses as long as you send everything they need. I was about 6 weeks late responding to mine and still got my refund processed. One tip: make copies of everything before you send it, and if you fax, keep the confirmation sheet. The IRS can be slow but they do process these eventually. My refund came about 2 months after I sent my response. You've got this! Just gather what they asked for and get it submitted.

I just went through this exact situation with a Letter 12C last year! The stress is real when you're not sure what they want and that 30-day deadline is looming. Here's what I learned from my experience: The Letter 12C usually means there's a mismatch between what you reported and what they have on file from your employers/financial institutions. For 2020 taxes, this was pretty common because of all the pandemic-related changes and delays in reporting. Besides your W2, check if the letter mentions any specific lines on your tax return they're questioning. Sometimes they want documentation for: - Unemployment compensation (if you received any in 2020) - Stimulus payments that might have been incorrectly reported - Any 1099 forms for side income or investment earnings The good news is that most Letter 12C issues get resolved pretty quickly once you submit the right documents. I was worried for nothing - turned out they just needed to verify my W2 matched what my employer reported, and I had my refund about 6 weeks later. Don't stress too much about being 2 weeks into the 30-day period. Focus on gathering the documents and getting them submitted. You've got this!

Thank you all for the amazing advice! I'm going to: 1) Ask about their corporate structure and how they're handling 280E 2) Look into having each family member invest separately rather than through me 3) Make sure our bank won't give us issues with deposits 4) Use that taxr.ai site to analyze the investment docs before committing Really appreciate all the responses - this has been incredibly helpful!

One more thing to consider - make sure you understand the liquidity timeline for this investment. Cannabis PE investments are typically very illiquid, and you might not be able to exit early even if you need the money. Also, since you mentioned this is your first PE investment, be aware that cannabis operations can be volatile due to changing regulations at both state and federal levels. What's legal and profitable today might face new restrictions tomorrow. The 8% dividend sounds attractive, but make sure you're comfortable with the risk profile and that you won't need access to this capital for several years. Consider diversifying rather than putting all your investment capital into a single cannabis operation, especially as a first-time PE investor.

Based on the data I've collected from approximately 50-60 similar cases this tax season, about 85% of "missing" direct deposits appear within 48 hours of the official deposit date. The remaining 15% typically involve either bank processing delays or secondary verification procedures at the Treasury level. It's worth noting that some financial institutions, particularly online banks and certain credit unions, may have longer processing windows for government ACH transfers. While it's certainly frustrating, a delay of 1-2 business days from the stated deposit date generally falls within normal parameters.

I'm going through the exact same thing right now! My deposit date was also today (April 2nd) and I've been checking my account obsessively since midnight. It's really helpful to see all these responses confirming this is normal - I was starting to panic that something went wrong with my return. From what everyone is saying, it sounds like I should expect to see it by Thursday or Friday at the latest. I bank with a smaller regional credit union, so based on what @Javier Mendoza mentioned about smaller institutions having different processing times, that might explain the delay. @Paolo Conti - thanks for sharing your experience with getting through to the IRS. The phone situation does sound impossible right now. I might just wait the 3 business days before trying to contact anyone, especially since so many people here have confirmed this delay is totally normal.

One thing no one's mentioned - you'll need to make quarterly estimated tax payments as a self-employed person! The IRS expects you to pay taxes throughout the year, not just at filing time. If you don't make these quarterly payments, you could face penalties even if you pay everything you owe by April 15. First payment for 2025 is due April 15, 2025. Google "Form 1040-ES" for the payment vouchers.

Just want to add another perspective here - if you're truly operating like an employee (set hours, using their equipment, following their direct instructions), you might want to document everything about your working relationship NOW before filing anything. Take screenshots of emails showing they control your schedule, keep records of them providing equipment/supplies, document any employee handbook or policies they expect you to follow. This documentation could be crucial if you decide to challenge your classification later. Even if you end up filing as self-employed this year to meet the deadline, having this evidence gives you options for the future. The IRS looks at the totality of the working relationship, not just what's written on the 1099 form. Also, don't let your employer pressure you into signing anything that says you agree to be classified as a contractor - that doesn't change the legal reality of your working relationship!