My construction company received around $230k in ERC, and we're currently under audit. One thing I learned that might help others - if your business grew during the pandemic compared to 2019, the IRS is automatically flagging those claims for review. We qualified based on supply chain disruptions and project delays due to government restrictions, but the IRS auditor is arguing that because our total annual revenue increased, we couldn't have been significantly impacted regardless of the specific rules.

This is exactly why I've been telling other business owners to be extremely cautious about ERC claims. The program was marketed as "free money" by so many firms, but the reality is that the IRS is now applying much stricter interpretations than what many businesses were told. What's particularly frustrating is that the government created this program during a crisis, encouraged businesses to apply, and now they're essentially penalizing people who relied on professional advice. The shifting interpretations make it feel like the rules are being changed retroactively. For anyone reading this who claimed ERC - document everything about your situation during the pandemic. Keep records of any government orders that affected your business, revenue comparisons, and the specific reasoning your tax preparer used. If you're having second thoughts about your eligibility, the voluntary disclosure program might be worth considering before the IRS contacts you. The difference between proactive disclosure and getting caught in an audit can be tens of thousands of dollars in penalties and interest.

Has anyone used one of the Big 4 accounting firms for PE analysis? We're considering hiring one but the fees they quoted were outrageous ($25k+ for an initial assessment).

This is such a timely discussion! I'm dealing with a similar situation for a UK-based fintech company. One thing I'd add is to be very careful about the "service PE" rules that can apply even without a physical office or dependent agents. If your European company is providing services in the US (like consulting, technical support, or software implementation) and those services are performed for more than 183 days in a 12-month period, you could trigger a service PE under many tax treaties. This is separate from the physical presence or dependent agent tests. Also, be aware that some activities that seem "preparatory or auxiliary" might not qualify for treaty protection if they're core to your business model. For a tech company, activities like customer onboarding, technical support, or customization services could be considered core business functions even if performed by contractors. The key is documenting everything - keep detailed records of what activities your US contractors are performing, their authority levels, and duration of services. This documentation will be crucial if you ever need to defend your position to tax authorities.

I encountered TC 766 on my Account Transcript during the current filing season. In my specific case, it represented a $2,000 Child Tax Credit allocation with a cycle date of 20241105. The Transaction Code 766 appeared simultaneously with TC 768 (Earned Income Credit) and was followed by TC 846 (Refund Issued) approximately 9 days later. The processing sequence typically follows: TC 150 (Return Filed) → TC 766/768 (Credits Applied) → TC 846 (Refund Issued). The presence of code 766 without accompanying code 570 (additional account action pending) is generally a positive indicator that your return is progressing normally through the IRS processing pipeline.

Code 766 is actually a really good sign! It means the IRS has applied credits to your account - things like Child Tax Credit, Earned Income Credit, or other refundable credits you qualified for. The fact that you're seeing this code means your return is being processed normally and the IRS has calculated your credits correctly. Since you mentioned being an international filer, this won't affect your processing timeline differently than domestic filers. Just keep checking your transcript for code 846 "Refund Issued" - that's when you'll know your refund is actually on its way to you. The 766 code is just one step in the process, so you're making progress!

Has anyone received their trace number faster by calling them directly instead of waiting? I've heard some people say calling makes no difference while others claim it speeds things up.

Based on everyone's experiences here, it sounds like Santa Barbara TPG is definitely running behind their normal processing times. I'm in a similar situation - got funded last Tuesday with a 02/27 DDD and still waiting for my trace number. What's frustrating is the lack of transparency from TPG about these delays. They should be proactively communicating with customers about extended processing times instead of leaving everyone in the dark. I've been checking my bank account obsessively, which isn't helping my stress levels. For those mentioning calling - I tried their customer service line yesterday and after a 2-hour wait, they basically just confirmed what we already know: they're backed up and processing in batches. The rep couldn't give me a specific timeframe for my trace number. At this point, I'm just planning for the worst-case scenario timeline mentioned here (3-5 business days) and hoping for the best. Thanks everyone for sharing your experiences - it's reassuring to know this is a widespread issue and not something specific to my return.

Last year I got my trace number on March 5th with a pending date of March 7th. The money showed up in my account at 12:01 AM on March 7th - I literally stayed up to watch for it because I needed it for my car payment! Every bank is different though. My sister has the same pending date through Chase and didn't get hers until almost noon. I'd say once you have that trace number, you're in the home stretch. The anxiety of waiting for tax refunds is something we all go through every year!

Congrats on getting your trace number! That's definitely a relief when you finally have that confirmation. I went through the same thing last year - had to call TurboTax because their app wasn't showing the trace number either. It's frustrating when the technology doesn't work as expected, but at least their phone support was able to help. In my experience, once you have that trace number and pending date, you're pretty much guaranteed to get your refund. The 2/24 date they gave you should be accurate. I'd expect to see it either late on 2/23 (some banks process overnight) or early morning on 2/24. My credit union usually posts these around 6 AM on the scheduled date. The hardest part is just the waiting now! But you're so close. Having that trace number means all the processing is done and it's just a matter of the money moving through the system. Good luck!