As a brand new member who just joined this community after experiencing the exact same IRS mail anxiety, I want to thank everyone for sharing such detailed and reassuring experiences! I'm in an almost identical situation - had a marketplace verification soft hold that was resolved in January 2025, and just got the Informed Delivery notification about incoming IRS mail that's not certified. Before finding this thread, I was absolutely panicking and googling worst-case scenarios. But reading through all these consistent experiences with CP215 notices arriving 4-6 months after resolution has been incredibly calming. The pattern recognition here is amazing - it's clear the IRS has a very systematic approach to these follow-up letters, even though it feels terrifying when you first see that notification. The non-certified delivery detail really does seem to be the key indicator that this is routine administrative correspondence rather than anything serious. I love the weather forecast analogy - I was definitely bracing for a hurricane when it's probably just a gentle breeze with some paperwork! This community has completely transformed what would have been sleepless nights into something manageable. I'll be checking my online account tonight and will update if I see anything there. Thank you all for proving that shared knowledge and real experiences are so much more valuable than generic advice from official websites!

As a complete newcomer to this community who just joined after experiencing that same terrifying moment of seeing "Internal Revenue Service" on Informed Delivery, I cannot express how grateful I am to have found this thread! I'm in an almost identical situation - had a marketplace verification soft hold that was resolved back in February 2025, and just received the non-certified mail notification this morning. Reading through everyone's experiences has been like discovering a detailed manual for exactly what I'm going through. The remarkable consistency in timing patterns (4-6 months post-resolution), the CP215 notice experiences, and the reassuring "no action required" outcomes that so many members have documented really demonstrates how systematic and predictable the IRS follow-up process actually is. Before finding this discussion, I was convinced that any IRS correspondence meant financial disaster, but seeing how routine and administrative these post-resolution letters really are has completely transformed my anxiety into manageable anticipation. The weather forecast analogy mentioned throughout this thread is absolutely perfect - I was definitely preparing for a category 5 hurricane when it's most likely just a sunny day with some light paperwork! The fact that it's regular mail rather than certified delivery gives me tremendous confidence that this is just bureaucratic housekeeping. I'll definitely be checking my IRS online account tonight to see if the correspondence appears there first, as multiple members have recommended. Thank you all for creating such an incredibly supportive and knowledgeable community where real-world experiences are shared so openly - this thread has been a complete lifesaver for navigating what otherwise would have been days of unnecessary stress!

Wait I'm confused... everyone's saying to repay the full amount including taxes, but isn't that basically paying taxes twice? Once when they originally withheld it and again when paying back money you never received?

This is such a stressful situation, but you're definitely not alone in dealing with this! I went through something similar when my previous employer discovered a payroll error from several months back. One thing that really helped me was creating a timeline of everything - when the overpayments occurred, when I was notified, when I made the repayment, etc. This documentation became crucial when I filed my taxes the following year. Also, don't feel bad about not catching this earlier while dealing with a family health crisis. That's completely understandable, and payroll errors happen more often than employers like to admit. The important thing is that you're handling it properly now. Just make sure to keep copies of everything - the school's demand letter, your repayment receipt, bank records showing the original deposits, etc. You'll need all of this when you file next year to prove your claim for getting that tax money back. The IRS wants to see a clear paper trail that shows you received money, paid taxes on it, then legitimately had to repay it.

This is such valuable information from everyone! As someone who just started receiving royalty income from my podcast sponsorships and affiliate marketing (about $1,800/month so far), I'm realizing I need to get my act together before tax season. One question that hasn't been addressed - how do you handle royalty income that comes from multiple sources with different payment schedules? I get payments from Spotify, Apple Podcasts, and various affiliate programs, all on different monthly schedules, plus some one-time licensing deals that are completely irregular. Should I be tracking each income stream separately for tax purposes, or is it okay to just lump everything together as "royalty income"? I'm worried about making mistakes in my record-keeping that could cause issues later. Also, for those who mentioned home office deductions - does this apply if I rent an apartment? I use one room exclusively for recording and editing, but I wasn't sure if the home office deduction works for renters or just homeowners. Thanks for all the insights so far - this thread has been incredibly helpful in understanding my options!

One aspect that hasn't been fully explored here is the state-specific implications of different business structures for royalty income. I've been managing royalties from my documentary work for several years, and the state you're in can dramatically change the math on whether LLC vs S-Corp makes sense. For example, some states don't recognize S-Corp elections and will tax you as a regular C-Corp (looking at you, New Hampshire). Others have franchise taxes that kick in at different revenue thresholds. California's $800 minimum franchise tax for LLCs means you're paying that even if you make $1 in royalties, which changes the breakeven calculation significantly. Also worth considering - if your royalties come from work that might generate income in multiple states (like music that gets licensed for films shot in different locations), you could face multi-state filing requirements regardless of your business structure. I learned this when one of my documentaries was used in a commercial that aired nationally. My advice would be to research your specific state's tax treatment before deciding on structure. What works in Texas might be terrible in California or New York. The SBA's local SCORE chapters often have retired accountants who understand state-specific business tax implications and offer free consultations. At your current income level Diego, I'd lean toward LLC in most states, but definitely verify the state-specific math first!

Great question! As others have mentioned, you don't need to file Form 941 until you actually start paying wages to employees. However, I'd suggest keeping detailed records of when you officially start your business operations, even if you're not paying wages yet. One thing that hasn't been mentioned is that if you do decide to pay yourself a salary from your business (rather than just taking owner draws), that's when Form 941 becomes required. This is especially important if you elect S-Corp tax status for your LLC - S-Corp owners who work in the business are required to pay themselves "reasonable compensation" as wages, which means you'd need to start filing Form 941. Also, make sure you understand the difference between employees and independent contractors from day one. Misclassifying workers is one of the most common mistakes new business owners make, and it can lead to back taxes and penalties on employment forms you didn't know you needed to file. Keep up the great work on staying compliant from the start - it'll save you headaches down the road!

I went through this exact same confusion when I started my consulting business! The key thing to remember is that Form 941 is specifically for reporting wages paid to employees - if you haven't paid any wages yet, there's no filing requirement. One thing that really helped me was creating a simple checklist of what triggers various tax filing requirements: - Form 941: Required once you pay wages to employees (W-2 workers) - Form 940: Required if you pay $1,500+ in wages in any quarter OR have an employee for part of a day in 20+ different weeks - Form 1099-NEC: Required for independent contractors you pay $600+ annually Since you're just starting out and it's only you, focus on getting your business operations running smoothly first. You can always set up payroll systems later when you actually hire employees. Just make sure to keep good records of when you start paying wages so you know exactly when these filing requirements kick in. Also, don't forget that your business income will still need to be reported on your personal tax return via Schedule C, even without employees. But that's separate from the employment tax forms we're discussing here. Good luck with your graphic design business!

The IRS can also cross-reference your income reported on Schedule C with your claimed retirement contributions to see if they're reasonable. If you're claiming max contributions but only reporting modest business income, that might trigger questions. Make sure your profit sharing contributions actually align with your reported business profits!

Another important point about IRS verification - they also use data matching algorithms that compare your reported retirement contributions across multiple forms. For example, if you claim a solo 401k deduction on your 1040 but the amounts don't match what's reported on your business return, that can trigger automated flags. I learned this the hard way when I made an error calculating my maximum employer contribution. The IRS computer systems caught the discrepancy between my Schedule C net profit and the employer contribution I claimed. Even though it was an honest mistake, I had to provide extensive documentation to prove my contributions were legitimate. My advice: run your numbers through multiple calculators before making contributions, and keep a spreadsheet showing exactly how you calculated both your employee and employer contribution limits. This saved me during my correspondence with the IRS because I could show my methodology even though I made an arithmetic error.