Just wanted to add that the W-7 ITIN process has changed a bit recently. The IRS is now being more strict about documentation verification. Sometimes one of those letters might be about acceptable ID verification methods if they couldn't verify from what you submitted initially. My brother got two letters - one was notification that they received his application, and the other (which came the same day) was a request for additional documentation. He almost missed the request because he assumed both letters were the same thing.

I went through this exact situation two years ago! Got two IRS letters while traveling abroad and was stressed about what they contained. Based on my experience and what others have shared here, you're likely looking at one letter with your actual ITIN assignment and another with instructions or confirmation. Here's what I'd recommend: Have your mail service scan at least one of the letters to see if there's any urgent action required. The privacy concern is understandable, but missing a potential 30-45 day deadline for additional documentation would be much worse than the temporary privacy risk. In my case, both letters were good news - ITIN approved and usage instructions. But I've heard of cases where one letter requests additional docs with a strict deadline. Since you're filing jointly as a nonresident alien spouse situation (same as mine was), these letters are probably routine processing communications, but better safe than sorry when you're stuck overseas. If you do get the scans and they're confusing, the AI tools others mentioned here like taxr.ai could help interpret the IRS language quickly without another privacy concern since you'd already have the digital copies.

Have you checked your mail carefully? They might have sent you a letter requesting additional information. My brother had his refund delayed for 9 months because they sent a verification letter that got lost in the mail, and he never knew they needed something from him until he finally got through to someone on the phone.

I went through almost the exact same situation last year - filed in March and didn't get my refund until the following January! After months of the generic "being processed" message, I finally called and discovered my return had been selected for identity verification. They had sent multiple letters to verify it was really me, but I never received a single one due to mail issues. The key is definitely calling them directly, even though it's a nightmare to get through. When I finally reached an agent, they were able to see all the notes on my account and exactly what was needed. In my case, I had to verify my identity online through their ID.me system and provide additional documentation. One tip: if you do call, ask them to check if there are any undelivered notices on your account. They can resend letters or sometimes handle verification over the phone. Also, make sure they have your current address - even if you think they do, double-check because sometimes returns get processed with old address information. Don't give up! That $6200 is yours and worth the hassle of getting through to them.

I'm dealing with the exact same situation! Got my 570 code about 10 days ago with a similar refund amount ($7,200). Like others have mentioned, it seems like larger refunds with child tax credits and education expenses automatically trigger these reviews. What's helped me stay sane is understanding that the 570 code without a 971 code usually means they're just doing an internal verification and don't need anything from you. The hardest part is just the waiting and not knowing exactly when it'll resolve. One thing I've learned from this thread is to check my transcript every Friday morning since my cycle code ends in 05. I've also been keeping an eye out for any mail from the IRS, though it sounds like if they needed additional documentation, we would have seen a 971 code by now. Hang in there! Based on everyone's experiences here, it seems like 4-8 weeks is pretty typical for these reviews to complete. I know it's frustrating when you're counting on that money, but at least we know this is a common process and not necessarily a sign that anything is wrong with our returns.

I went through this exact same situation last year with a $7,400 refund that included child tax credits and education expenses. The 570 code appeared on my transcript in early March and I was freaking out because I really needed that money for some home repairs. What helped me was understanding that the 570 code without a 971 code is actually a good sign - it means they're doing an internal review and likely don't need any additional documentation from you. The date you see (03-03-2025) isn't when something will happen, it's just part of their internal processing cycle. My timeline was: 570 code appeared March 8th, transcript updated every Friday (I had a 05 cycle code too), and then on April 19th I suddenly had a 571 code which released the hold and my refund was deposited 3 days later. Total time was about 6 weeks from when the 570 appeared. The hardest part is just the waiting and uncertainty, but based on your situation (first time claiming your daughter after divorce + education credits), this is pretty standard verification. Keep checking your transcript on Friday mornings and try to be patient. I know it's easier said than done when bills are piling up, but the refund will come through!

Just wanted to add another perspective on this - we faced the exact same situation last year with our partnership that has two foreign individual partners. After weighing all the options discussed here, we ended up going the ITIN route, and it wasn't as bad as we initially feared. The key was getting started early and using a Certified Acceptance Agent (CAA) as mentioned by Ellie. Our CAA was able to verify the original documents without our partners having to mail their passports to the IRS, which was their biggest concern. The whole process took about 9 weeks from application to receiving the ITINs. What really helped was explaining to our foreign partners that the ITIN would be useful for other potential US tax situations in the future, not just this one partnership filing. Once they understood it was a one-time process that could benefit them long-term, they were more willing to go through with it. Now we can elect out of the centralized audit regime, which gives us more control and flexibility. For anyone still on the fence, I'd recommend starting the ITIN applications as soon as possible - the processing times can vary significantly depending on the time of year you apply.

This is such a helpful thread! I'm dealing with a similar situation where we have three foreign partners (two individuals and one entity) and I've been going back and forth on the best approach. Based on what everyone has shared, it sounds like we have a few viable options: 1. Get ITINs for the individuals and EIN for the entity to opt out of the centralized regime 2. Stay in the centralized regime and avoid the TIN requirements altogether 3. File with a statement explaining pending ITIN applications I'm leaning toward option 1 since Lucas mentioned the ITINs could be useful for future US tax situations. Does anyone know if there are specific advantages to opting out beyond just having the audit adjustments at the partner level instead of partnership level? Our partnership is fairly small but we do have some US real estate investments that might complicate things if we're audited. Also, for those who used Certified Acceptance Agents - any recommendations on how to find reputable ones? I want to make sure our foreign partners have a smooth experience with the process.

Just to add to the K-1 Box 16 discussion - Code C is typically for nondeductible expenses that reduce basis (often things like penalties, certain meals/entertainment that aren't fully deductible, etc). This isn't taxable income but does reduce your basis. And for those confused about loan repayments - when an S-Corp repays a shareholder loan, it's not taxable income. It's simply returning your money. The confusion comes because it does reduce your debt basis, but that's not the same as creating taxable income.

Great breakdown of the K-1 issues! I've been dealing with similar S-Corp headaches and found that keeping a simple spreadsheet to track basis changes each year helps a lot. For the emergency travel expenses, one thing to watch out for - if your employees were reimbursed for these costs, make sure you're not double-counting them. The reimbursements should be deductible business expenses, but don't also try to claim them as employee compensation or you'll get flagged. Also, since you mentioned multiple vehicle breakdowns, you might want to consider whether some of those vehicles need to be replaced or if there's a pattern that suggests maintenance issues. The IRS sometimes looks at repeated "emergency" expenses skeptically if they think it's really a failure to maintain business assets properly. Document everything with timestamps, locations, and business justification. Tax season is brutal but you've got this!