2 Has anyone dealt with the state tax implications of late ERC amendments? My client's in New York, and I know they generally conform to federal filing deadlines for amendments, but I'm not sure if they have a similar exception for the ERC situation.

This is a really helpful thread! I'm dealing with a similar situation where my client received their 2020 ERC refund just last month. The 60-day rule explanation makes so much sense - I had no idea there was a specific exception for ERC situations that overrides the normal 3-year amendment deadline. One question I have is about the documentation requirements. When you say to include "any IRS notices related to the ERC claim approval," are you referring to specific forms or just the general correspondence about the refund being processed? My client received several different pieces of mail from the IRS throughout the ERC process, so I want to make sure I'm including the right documents. Also, for the statement explaining the timeline of events, is there a specific format the IRS prefers, or just a simple narrative explaining when the ERC was filed, when the refund was received, and that we're filing within 60 days of receipt? Thanks for sharing your experiences - it's really reassuring to know this situation can be resolved properly!

Quick question - does anyone know if there's a specific IRS form I need to submit all the 1099-Cs I issue as a landlord? I have 3 tenants I'm considering debt forgiveness for, and I'm not sure if they're submitted individually or as a batch.

One thing I learned the hard way - make sure you have the tenant's correct SSN or TIN before filing the 1099-C. I had a situation where I only had a partial SSN from an old application, and the IRS rejected my filing. They require the complete, accurate taxpayer identification number. If you don't have their SSN, you can try reaching out one final time requesting it specifically for tax reporting purposes. If they still don't respond, you can file the 1099-C with "APPLIED FOR" in the TIN field, but this may trigger additional IRS correspondence later. Also worth noting - if your tenant was a business entity rather than an individual, you'd need their EIN instead of SSN, and the reporting requirements can be slightly different. The $600 minimum still applies, but make sure you're clear on whether you're dealing with personal or business debt forgiveness.

Just want to say this is exactly why I always recommend calling the IRS directly rather than waiting. So many people just sit around checking WMR daily when a 20-minute phone call can clear things up. Glad you took initiative and got answers! The IRS is overwhelmed but most agents really do want to help if you can get through to them.

Thanks for sharing this experience! It's so frustrating how inconsistent the information can be between different IRS reps. I filed around the same time (Feb 3rd) and have been getting the runaround too. One agent told me my return was "under review" and another said it was "processing normally" - like which is it?? I'm definitely going to check my transcript tomorrow like you suggested. Did the rep give you any specific codes to look for, or just said to watch for updates? Also curious if Jackson Hewitt gave you any tracking info on their end or if you had to rely entirely on the IRS systems. Really hoping this gets resolved quickly for you - the uncertainty is the worst part!

I'm actually going through something similar with a different payroll service. What happens if you don't get this resolved before the filing deadline? Is it better to file an extension or try to file with the substitute form?

I went through this exact situation with my S-Corp a few years back when my payroll company went out of business mid-year. Here's what I learned from my CPA and the IRS: 1. **Document everything** - Keep records of all your attempts to contact Gusto, including dates, times, and what they told you. Screenshot any emails or chat conversations. 2. **Know your rights** - As others mentioned, Gusto has a legal obligation to provide your W-2 regardless of your subscription status. The fact that they processed payroll for you creates this responsibility. 3. **Form 4852 is your friend** - If Gusto continues to refuse, Form 4852 (Substitute W-2) is the legitimate IRS-approved solution. Make sure to use your final paystub's year-to-date totals, as these should match what was reported to Social Security. 4. **Consider state requirements too** - Don't forget that you may also need state wage statements depending on where your LLC was based. The good news is that this situation is more common than you'd think, and the IRS has established procedures to handle it. Just make sure all your numbers are accurate and you have documentation showing your good faith efforts to obtain the proper W-2.

Important note that I learned the hard way: How you CLAIMED the depreciation matters, not just how you COULD HAVE claimed it. If you took accelerated depreciation under MACRS or Section 179 expensing, the recapture rules still apply to what you actually deducted. In your example, even tho your selling at a loss overall, make sure your keeping good records of exactly what depreciation method you used and how much you claimed each year.

I went through something very similar with machinery I sold last year. Your calculation is spot on - since you're selling below your adjusted basis of $13,300 ($26,500 - $13,200), you have an ordinary business loss of $6,500 that you can deduct. No depreciation recapture applies here. One thing to watch out for though - make sure you have proper documentation of the original purchase price and all depreciation claimed. The IRS may want to see Form 4797 for the sale of business property, and you'll need to show the depreciation schedule. Also, if this equipment was claimed under Section 179 expensing in addition to regular depreciation, the loss calculation works the same way but the paperwork gets a bit more complex. The key thing to remember is that recapture only kicks in when there's actually a gain above your adjusted basis. In loss situations like yours, you're essentially getting an ordinary deduction that can offset other business income, which is actually more favorable than a capital loss would be.