I'm confused about the actual filing process. If I do qualify as a trader (I trade 15-20 times daily, avg holding time <5 days), when exactly do I need to file the 475(f) election? Is it with my 2025 return or do I need to file something earlier? I formed my LLC in January.

Based on all the discussion here, it sounds like the consensus is pretty clear - you need trader status regardless of entity structure to make the 475(f) election. Your trading pattern of 3-5 trades per month with 6+ month holding periods definitely puts you in investor territory. I'm curious though - have you considered whether there might be other tax strategies that could be beneficial for your LLC structure without needing the 475(f) election? For instance, depending on your situation, you might benefit from tax-loss harvesting strategies or potentially electing S-Corp status for your LLC if you're generating significant trading income. Sometimes the alternatives can be more beneficial than trying to force a square peg (investor activity) into a round hole (trader election).

I've been dealing with similar transfer delays with Wise, and it's usually related to their internal compliance checks rather than anything you did wrong. They have automated systems that flag transactions based on various factors - amount, frequency, recipient country, etc. In my experience, transfers over $5,000 to new recipients or countries you haven't sent to before often get reviewed. Even repeat transfers can sometimes get flagged if they're larger than your usual amounts or if there's been a gap in your transfer history. The good news is that once you're verified and have an established transfer pattern, future transfers usually go through much faster. I now regularly send $10,000+ to family in Canada and they typically process within hours rather than days. If you're planning regular larger transfers, it might help to contact Wise support proactively to verify your account for higher amounts. They can sometimes pre-approve you for larger transfers which reduces the chance of delays.

One important thing to consider is the timing of your transfers if you're planning to send larger amounts. I learned this the hard way when I sent $15,000 to my parents in Canada last year - the timing matters for both US gift tax reporting and Canadian tax implications for the recipients. From the US side, if you're sending more than the annual gift exclusion amount ($17,000 for 2023, $18,000 for 2024) to any one person, you need to file Form 709 by April 15th of the following year. But here's what caught me off guard: if your Canadian recipients receive large gifts, they might need to report it on their Canadian tax return too, even though gifts aren't typically taxable in Canada. Also, consider spreading larger gifts across tax years if possible. Instead of sending $30,000 to one family member in December, you might send $17,000 in December and $13,000 in January to stay within the annual exclusion limits and avoid the Form 709 filing requirement altogether. The key is planning ahead rather than just focusing on the transfer mechanics. The actual transfer through services like Wise is straightforward - it's the tax implications on both sides of the border that require more thought.

I'm at week 20 and honestly considering reaching out to my congressman at this point. Filed my 1040X in September and still nothing but "processing" on WMR. My CPA said that's becoming the norm now - she's seeing 22-26 weeks regularly for her clients. The worst part is having zero real information about what's actually happening. At least with regular returns you get some updates, but amended returns are like throwing papers into a black hole. Really wish the IRS would be more transparent about realistic timelines instead of that misleading 16-week estimate.

Just wanted to chime in as someone who's been through this nightmare twice! My first amended return took 23 weeks and my second one (filed last year) took 19 weeks. The anxiety is absolutely brutal, especially when you need that money for bills like you mentioned. One thing that helped me was setting up direct deposit alerts so I'd know the moment anything hit my account instead of constantly checking the useless WMR tool. Also, if it makes you feel any better, I've never heard of an amended return just disappearing - they're slow as molasses but they do eventually process them. Hang in there, you're already at week 12 so you're in the home stretch even if it doesn't feel like it! 🙏

This is exactly the kind of question I struggled with when I first started my freelance writing LLC! After reading through all these responses, I want to emphasize something important that might get lost in the technical details: document your decision and be consistent. Whether you choose to use your SSN or EIN on the W-9, make sure you're using the same approach across all your tax documents and business dealings. I keep a simple spreadsheet tracking which TIN I used for each client's W-9, so when 1099s come in at year-end, I can easily match them up with my records. Also, don't stress too much about making the "perfect" choice - both options are valid for single-member LLCs in most cases. The key is being consistent and making sure your tax preparer (or tax software) knows which approach you're taking so everything flows correctly to your Schedule C. One last tip: save copies of all your W-9s! They're helpful reference documents when you're doing your taxes and can help resolve any discrepancies if they arise.

Great question! I went through this same confusion when I started my single-member LLC for graphic design work. After dealing with the headache of conflicting advice online, I ended up consulting with a CPA who clarified everything for me. The bottom line is that since you're a disregarded entity (which most single-member LLCs are by default), the IRS wants to see your SSN on the W-9 because that's what ties to your personal tax return where you'll report the LLC income on Schedule C. However, you absolutely should put your LLC's business name on Line 2 of the W-9 form. Here's what I learned the hard way: using your EIN when you should use your SSN can actually create problems down the road. The IRS computer systems expect certain TINs to match certain entity types, and mismatches can trigger correspondence or delays. That said, if you have a specific business reason to use your EIN (like you want to keep your SSN more private), you can do so, but just make sure you're consistent across ALL your business dealings - bank accounts, other tax forms, state registrations, etc. One practical tip: whatever you choose, keep a master document listing which TIN you used for each client. It'll save you time and confusion when 1099s start arriving in January!

Saw this thread and thought I'd throw in my 2 cents. Last year I didn't file because "they already took taxes out of my checks so what's the point?" BIG MISTAKE. Got hit with failure-to-file penalties even though I didn't owe anything extra! Found out I was actually due a $1,320 refund but nearly lost it because there's a 3-year deadline to claim refunds. So yes, filing and paying are different, and yes, you need to file EVEN IF your employer withheld taxes already!!

Don't feel embarrassed at all - this is actually a really common confusion! Think of it this way: filing is like submitting your homework to show what you earned and what was already paid, while paying is the actual money changing hands. Since you mentioned your employer takes taxes out of every paycheck, you've likely been "paying" taxes all year long through those deductions (called withholding). When you file your return, you're basically doing the math to see if those payments were enough to cover what you actually owe. Most people in your situation either get a refund (because too much was withheld) or owe a small amount. The key thing is that filing is required regardless - even if you don't owe anything extra, you still need to submit that paperwork to the IRS. And if you're owed a refund, filing is the only way to get it! You've got this - it's way less scary once you understand the difference.