


Ask the community...
Listen, the IRS site is notoriously glitchy on mobile. Been that way for yrs. Most ppl don't realize their system runs on ancient tech that barely works w/ modern browsers. Quick fixes that work for most: - Try incognito/private browsing mode - Desktop comp > phone ALWAYS - Clear cookies/cache before trying - Try diff browser (Firefox tends to work better) - Log in super early AM or late PM If none of that works, just call the transcript req line (800-908-9946). Takes 5-10 days but way less hassle than fighting w/ their garbage website. Trust me, I've been down this rabbit hole many times.
I've been dealing with this same frustrating issue! What worked for me was switching to a different network entirely - I was on my home WiFi when having problems, but when I tried using my phone's cellular data instead, it worked perfectly. Sometimes the issue isn't just the browser or device, but the network connection itself. The IRS authentication system can be really finicky about certain internet providers or network configurations. If you have access to a different WiFi network (maybe at a library, coffee shop, or friend's house), give that a try. Also, make sure your phone's date and time are set correctly - I know it sounds weird, but security certificates can fail if your device clock is off by more than a few minutes. This happened to me with a different government site last month. Hope this helps! The transcript system really shouldn't be this difficult to use in 2025.
This is really helpful! I never would have thought about the network connection being the issue. I've been trying on my home WiFi this whole time - going to try switching to cellular data right now. The date/time thing is interesting too, I had no idea security certificates could be that sensitive to clock settings. Thanks for sharing what worked for you!
Another option worth considering is filing Form 8832 first to elect to be taxed as a C Corporation, then immediately filing Form 2553 for S Corp status. Sometimes this two-step approach can work outside the normal S Corp election deadline. Talk to your accountant about this strategy - it's worked for some clients at our firm.
That's interesting! I never heard of that approach. Is that completely legitimate with the IRS? And would there be any downsides to doing it this way versus the relief procedure mentioned above?
It's a legitimate strategy that works in certain situations, but it doesn't bypass all timing rules. The Form 8832 election to be treated as a C Corporation can be made at any time and can be effective up to 75 days prior to the filing date or up to 12 months after the filing date. The potential downside is that you'll need to meet the S Corporation election deadlines that apply to newly formed corporations (generally within 2 months and 15 days after the effective date of the C Corporation election). You also need to ensure you don't inadvertently create a short C Corporation tax period that could have tax consequences. Definitely consult with your tax professional before attempting this route to make sure it applies to your specific situation.
Don't forget that even if you successfully convert to an S Corp, you need to run payroll and pay yourself a "reasonable salary" before taking any distributions. Many people miss this and end up with IRS problems. My brother tried taking mostly distributions with a tiny salary and got hit with penalties for avoiding payroll taxes.
What's considered "reasonable" though? My accountant said 60% salary/40% distributions but my business partner's accountant said we could do 40% salary/60% distributions. There's no clear rule!
The IRS doesn't give a specific percentage, but they look at what you'd pay a non-owner employee to do the same work. Factors include your role in the company, hours worked, qualifications, and what similar positions pay in your area. Generally, if you're actively involved in the business, your salary should reflect market rates for your position. The key is being able to justify it as reasonable compensation - too low and you risk audit scrutiny, but you don't need to pay yourself more than market rate either. Document your reasoning and keep comparable salary data to support your decision.
Just went thru this! That taxr.ai tool someone mentioned above is actually legit - told me exactly when my 420 would clear and it was spot on. Way better than waiting on hold with IRS for hours
about 75 days total but the AI told me that from the start based on my transcript codes
Code 420 can be frustrating but hang in there! I'd recommend calling the Practitioner Priority Service line if you have a tax pro helping you, or try calling early morning (7-8am) for shorter wait times. Also keep checking your transcript weekly - sometimes the codes update before you get any mail. The fact that you only had W2 and child tax credit makes it likely just a routine verification that should clear up relatively quickly.
Thanks for the tip about calling early morning! I've been dreading calling the IRS but 7-8am sounds way better than the horror stories I've heard about being on hold all day. Definitely going to try that this week and start checking my transcript more regularly too.
I'm still confused about this. Can I claim exempt just for December when I'm working all that overtime, then switch it back in January? Or is exempt an all-year thing?
You're misunderstanding how the exempt status works. Claiming "exempt" isn't something you do just for high-income periods. It's a declaration that you expect to have ZERO tax liability for the ENTIRE tax year. If you expect to owe any federal income tax for the year as a whole, you cannot legally claim exempt for any part of the year, even for just one pay period. The IRS looks at your tax situation annually, not month by month.
I see a lot of confusion here about withholding vs. exemptions. Let me try to clear this up from a practical standpoint. The "exempt" checkbox on your W-4 is NOT a tool for managing cash flow during busy seasons. It's a very specific declaration that you expect ZERO federal tax liability for the entire year. This typically only applies to people earning very little (below the standard deduction threshold). If you're working overtime during the holidays and expect to owe taxes for the year, here are your legitimate options: 1. Adjust your withholding allowances on your W-4 to have less tax taken out (but still some) 2. Use the IRS withholding calculator or tools like those mentioned above to find the right balance 3. Accept that you'll get a larger refund when you file, but have less take-home pay now The key is being honest about your expected annual income. If you'll owe taxes for the year, claiming exempt is tax fraud, even if it's just for December. The IRS doesn't care that you need more cash for the holidays - they care about accurate withholding based on your actual tax situation. Better to adjust your withholding legally than risk penalties and a massive tax bill later.
Zoe Alexopoulos
Another approach - have you tried explaining to your contractor that they REALLY need to give you their info? If they're a legitimate business, they should understand this is required. I've had success with telling contractors that I'm legally required to report payments over $600, and without their SSN/EIN, they might face issues with the IRS themselves. Sometimes they just don't understand the importance. You might also want to have them complete a W-9 form which officially requests their tax ID information. Send it with a gentle but firm explanation that you cannot make future payments without this completed form.
0 coins
Jamal Anderson
β’This worked for me! My stubborn contractor finally sent their info when I explained that I'm actually REQUIRED by law to report payments over $600, and that without their EIN, the IRS might flag both of us for review. Sometimes they just don't realize it's not optional.
0 coins
Nadia Zaldivar
Great question! I went through this exact situation last year with a freelance graphic designer. You absolutely can e-file your personal return through TurboTax and mail the 1099-NEC/1096 forms separately - they're completely independent processes. For your personal return, just claim the $1,800 deduction on your Schedule C (or Schedule C-EZ) as usual. The IRS doesn't require you to have the contractor's TIN to claim legitimate business expenses. For the 1099-NEC, fill it out with "Applied For" in the TIN field and mail it with Form 1096 to your state's designated IRS processing center (you can find the address in the 1099 instructions). Make sure to keep copies of all your attempts to get their SSN/EIN - emails, texts, certified mail receipts, etc. One tip: Send the contractor a formal W-9 request via certified mail with return receipt. This creates an official paper trail and sometimes the formality finally gets them to respond. You can download the W-9 from IRS.gov. Don't let this contractor's lack of cooperation delay your filing or cost you a legitimate deduction!
0 coins