Be careful about what information you share when you do get through. Last year I reached an agent who asked me for information I wasn't comfortable sharing over the phone. Turned out it was legitimate, but always verify you're actually speaking with the IRS before providing sensitive details. They will never ask for full bank account numbers or passwords.

I've had success using the callback feature! If you call 1-800-829-1040 and get put on hold, listen carefully - sometimes they offer a callback option where you can hang up and they'll call you back when it's your turn. I used this last month and got a call back in about 90 minutes instead of sitting on hold. Just make sure you're near your phone when they call back because they only try once. Also, double-check that your phone isn't blocking unknown numbers or the callback might not come through.

Just wanted to add another perspective on installment sales since Malik brought it up - they can be incredibly effective for business sales, but there are some important considerations to keep in mind. Most business assets can qualify for installment sale treatment, but there's a key exception: inventory and depreciation recapture on personal property (like your laundry equipment) generally cannot use installment treatment. This means the depreciation recapture portion would still hit you in year one, even with an installment sale structure. However, the portion of your sale allocated to goodwill, customer relationships, and other intangible assets CAN qualify for installment treatment. So you'd still get some benefit from spreading those gains over multiple years. The buyer would need to agree to seller financing for a true installment sale. Alternatively, if they want to pay cash upfront, you could potentially structure it as a sale to a buyer who then immediately sells to the actual purchaser with seller financing - though this gets complicated and you'd definitely need legal and tax counsel. Another option to consider is a charitable remainder trust if you're charitably inclined. You can transfer the business to the trust, get a partial tax deduction, receive income for life, and potentially reduce the overall tax bite significantly. Not right for everyone, but worth exploring given the size of your transaction.

This is such a great discussion! As someone who recently went through a similar business sale, I wanted to add one more consideration that hasn't been mentioned yet. Make sure you understand the difference between asset sales vs. stock sales, as this can significantly impact your tax treatment. Most small business sales (especially laundromats) are structured as asset sales, which is what everyone has been discussing here with the depreciation recapture. However, if your business is incorporated and you can structure it as a stock sale instead, you might get more favorable capital gains treatment on the entire transaction. The downside is that buyers often prefer asset sales because they can "step up" the basis of assets for their own depreciation purposes. Also, don't forget about state tax implications! Some states have no capital gains tax, while others tax capital gains as ordinary income. Depending on where you're located, this could be another significant factor in your planning. Given the complexity everyone has outlined here - depreciation recapture, asset allocation, installment sales, appraisals - I'd strongly recommend getting multiple opinions from tax professionals who specialize in business sales. The potential savings from proper planning on a $300k transaction could easily justify the cost of expert advice. Best of luck with your sale and retirement! 25 years running a business is quite an accomplishment.

I'm curious about the timeline here...when did you file your original return and how long do you typically have to amend? My tax guy always says "don't worry about small stuff" but reading these comments has me wondering if that's good advice.

I went through this exact same situation a couple years ago with a part-time retail job I'd forgotten about. The amount was similar to yours - around $1,100. I was tempted to just ignore it since it seemed so small, but I'm really glad I didn't. Here's what I learned: the IRS matching system is pretty sophisticated. They get copies of all W-2s and 1099s, and their computers automatically flag when reported income doesn't match what employers submitted. You'll likely get a CP2000 notice in 12-18 months asking about the discrepancy, and by then you'll owe penalties and interest on top of the additional tax. Filing the 1040-X now while it's still voluntary shows good faith and typically results in minimal or no penalties. Plus, if they withheld any federal taxes from your paychecks (which many part-time jobs do), you might actually end up with a small additional refund rather than owing money. The amended return process isn't as scary as it sounds - just recalculate your tax with the additional income included and submit the form. Much better to handle it proactively than wait for the IRS to find it themselves!

just make sure u keep checking ur mail. i verified my identity online in May and thought i was good to go, but then they mailed me ANOTHER form to fill out two weeks later. the IRS is notorious for not communicating between departments.

I went through identity verification last month and it took exactly 6 weeks to get my refund, so definitely faster than the 9 weeks they quoted. The Where's My Refund tool updated after about 3 weeks showing "still processing" and then suddenly switched to "refund approved" one day. Definitely get that IP PIN - it's super easy to set up and gives you peace of mind. I wish I had done it years ago. The whole verification process is stressful enough without worrying about someone else filing under your SSN. One thing I learned is that the 9 weeks is their worst-case scenario timeframe. Most people seem to get their refunds within 4-6 weeks if there are no other issues with their return. Just be patient and don't stress too much about calling - the confirmation screen you got means everything went through properly.

WARNING: Be careful about reasonable cause. My husband tried this last year for his consulting business and it got REJECTED. He had to file as a sole prop for half the year and then as an S-corp, which meant TWO different tax returns and a ton of accounting headaches. The IRS is getting stricter about these late elections. Make sure your reasonable cause is actually reasonable and not just "I didn't know about it." We learned the hard way that "I was busy with client work" isn't good enough. If you're serious about making this work, talk to an actual tax pro who specializes in business formation, not just random internet advice.

I went through this exact situation 2 years ago as a freelance web developer. Here's what I wish someone had told me upfront: The timing is crucial, but you have more flexibility than you might think. You can form your LLC in August and still get S-corp treatment for your entire 2023 income, BUT you need to act fast once the LLC is formed. My recommendation: Form the LLC immediately in August, get your EIN the same day (you can do this online), then file Form 2553 within 2-3 weeks. Even if you're technically "late" by a few days, a simple reasonable cause statement explaining you're a first-time business owner unfamiliar with the election deadlines will likely be accepted. The key advantage is that once approved, you'll file a single 1120-S for the entire year instead of splitting between Schedule C and S-corp returns. This saves you significant accounting complexity and costs. One important note: Make sure you have reasonable justification for the salary vs. distribution split once you're an S-corp. The IRS expects you to pay yourself a "reasonable" salary for the work you do, with the remaining profits taken as distributions (which aren't subject to self-employment tax). Don't overthink this - thousands of freelancers make this transition successfully every year. Just don't wait until December to start the process!