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?

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.

I've been dealing with this exact issue for years as a small business owner with an S-corp. The confusion is totally understandable because it does feel counterintuitive to reduce your cash when the money is still technically in your bank account. What helped me finally understand it was thinking about it this way: for cash basis accounting, you recognize expenses when you pay them, not when they clear your bank. The moment you write and mail that check, you've "paid" the expense from a tax perspective, even if the recipient hasn't deposited it yet. So on Schedule L, your cash balance should reflect what you actually have available to spend, not what your bank statement shows. Those outstanding checks represent money you can't use anymore - it's committed, even if it hasn't physically left your account yet. I made the mistake of putting outstanding checks on Line 18 for two years before my new accountant caught it. Had to file amended returns, which was a hassle I could have avoided. Definitely go with reducing Line 1 - it's the standard approach for cash basis S-corps and will keep you consistent with proper reporting.

As someone who's been through this exact scenario with my S-corp, I can confirm that reducing Line 1 (Cash) is definitely the correct approach for cash basis accounting. The key insight that helped me was understanding that Schedule L should reflect your true financial position at year-end - not just what your bank statement shows. I used to get hung up on the fact that the money was still "technically" in my bank account, but once I realized that those outstanding checks represent committed funds that I can no longer use for business operations, it made perfect sense to reduce the cash balance accordingly. One practical tip: keep good records of which specific checks are outstanding at year-end. This documentation will be helpful if you ever get questions during an audit, and it makes the following year's reconciliation much easier when those checks finally clear. The consistency is important too - whatever method you choose, stick with it year over year to avoid the complications that some others mentioned with amended returns. Since you're cash basis, reducing Line 1 is both technically correct and the most widely accepted practice among tax professionals.

I'm in a similar situation - filed electronically on April 8th and still waiting! It's so frustrating seeing the "still processing" message every time I check. From reading everyone's experiences here, it sounds like the delays are really common this year, especially if you claimed credits like the Child Tax Credit (which I did too). I'm going to try checking my transcript online like others suggested - seems like that gives more detailed info than the Where's My Refund tool. The 21-day processing time they advertise is clearly not realistic right now. Hang in there, hopefully we'll both see some movement soon! 🤞

I'm going through the exact same thing! Filed on April 12th and it's been radio silence from the IRS ever since. The "Where's My Refund" tool has been stuck on "still processing" for months now. It's really frustrating not knowing what's going on or if there's even an issue with my return. Reading through everyone's responses here has been super helpful though - sounds like the transcript is definitely the way to go for actual information. I had no idea that claiming the Child Tax Credit could cause such long delays, but that explains a lot since I claimed it for my daughter. Thanks for posting this question - at least now I know I'm not alone in this waiting game! Going to try accessing my transcript tonight and see if that gives me any clues about what's happening behind the scenes.

Plot twist: the IRS is using our refunds to fund a secret space program 👽🛸

I'm dealing with the exact same issue! Filed in March and still waiting. One thing that helped me was setting up an online account on the IRS website - sometimes it shows more detailed status info than the "Where's My Refund" tool. Also, if you have a local IRS Taxpayer Assistance Center nearby, you might be able to walk in for help (though call first to check if appointments are needed). The wait times are brutal, but don't give up! Your refund is out there somewhere in the system.

This is such a helpful thread! I'm in a similar situation where I provide care for my elderly father and do a lot of driving for his medical needs. One thing I learned from my accountant that might be useful - if your partner is classified as self-employed for PCA work, she should also consider setting up a separate business bank account for all PCA-related expenses, including vehicle costs. This makes record-keeping much cleaner and provides better documentation if you're ever audited. Also, don't forget that if you do go the actual expense method route, you can deduct things like car washes if the vehicle is used primarily for business - my accountant said keeping the car clean and presentable is considered a legitimate business expense for client-facing services. Just make sure to keep receipts and note the business purpose!

One important thing to keep in mind - if your partner is receiving 1099s for PCA work, she'll also need to pay self-employment taxes (Social Security and Medicare) on that income, which is about 15.3% on top of regular income tax. The vehicle deductions can help offset some of this burden, but it's something to factor into your overall tax planning. Also, I'd suggest keeping a simple spreadsheet or notebook in the car specifically for logging business trips. Include date, starting location, destination, purpose of trip, and mileage for each business-related drive. The IRS likes to see contemporaneous records (meaning recorded at the time, not recreated later), so having this habit from the start will save you headaches if you're ever questioned about the deductions. If you do decide to purchase a new vehicle, consider looking at hybrids or electric vehicles - there may be additional tax credits available that could further offset your costs, especially if the vehicle qualifies for federal EV credits.