Check your mail like a hawk. I had this last year and missed their letter asking for ID verification. Delayed everything by 2 months smh

Code 810 with early filing is pretty normal - they're probably just doing their usual verification checks since you filed so early in the season. I wouldn't stress too much unless you get a letter asking for docs. Most of these clear up automatically within 2-3 weeks once they finish processing the backlog from holiday season.

Here's another important consideration with MTM that people often miss: if you make the election, you can't cherry-pick which securities it applies to. It applies to ALL your securities that are held in connection with your trading business. I made this mistake thinking I could keep some investments separate. You need to clearly segregate investment accounts from trading accounts BEFORE making the election. Investment positions can be excluded, but you need clear documentation.

One MTM example that helped me understand: I had $120,000 in realized gains in 2024, and on December 31st, I had $45,000 in unrealized losses and $15,000 in unrealized gains. Without MTM: Only my $120,000 realized gains would be taxable. With MTM: My taxable income would be $120,000 - $45,000 + $15,000 = $90,000. But the real benefit came the next year. Those positions that were "marked to market" started 2025 with a new basis. When I actually sold them later, I only had to pay tax on the gains from the January 1st price, not my original purchase price. Saved me from the wash sale headache too!

I messed up on this last year... I didn't file a 5500 for our S-corp health insurance arrangement (5 employees) and then got a notice from the DOL. Turns out we had set up our health insurance as a formal group plan with a third-party administrator, which technically did require a 5500 filing even though we were small. Had to file a late 5500 and pay some penalties. So definitely double-check how your health insurance is structured! Don't just assume you're exempt because you're small.

Based on what you've described - 3 employees total and paying a portion of individual health insurance premiums directly from your business account - you're very likely exempt from Form 5500 filing requirements. Since you have fewer than 100 participants and you're paying from general business assets rather than maintaining a formal plan with assets, you fall under the small employer exemption. However, Emma's experience above is a great reminder that the structure matters. If you're simply reimbursing individual premiums, that's typically a health reimbursement arrangement (HRA) which is generally exempt. But if you have a formal group plan through an insurance carrier or third-party administrator, different rules might apply. I'd recommend documenting exactly how your arrangement is structured - are you reimbursing employees for individual policies they purchase, or do you have a group health plan where you pay premiums to an insurer? Keep records of your setup in case you ever need to demonstrate your exemption status. The key is being able to show you don't have a formal ERISA plan that requires 5500 filing.

I got this letter last month too!! Found out it happened because I had a W-2 from a job I worked for only 2 weeks and forgot to include it on my return. Wasn't identity theft at all, just me messing up lol. Still had to go through verification tho.

I went through this same situation about 6 months ago and it was stressful at first, but turned out fine. The key thing to remember is that receiving an identity verification letter doesn't necessarily mean your identity was actually stolen - the IRS has become much more cautious and flags returns for various reasons. In my case, it was triggered because I had started a side gig and reported 1099 income for the first time. The verification process took about 2 weeks once I called (took me several attempts to get through), and my refund was released 5 weeks after that. Make sure you have your prior year return, current year return, and the letter when you call. Also, try calling early in the morning (8 AM) or later in the afternoon - I had better luck getting through during those times. Don't panic, this is more common than you'd think and gets resolved once you verify your identity.

I had almost this exact situation last year! My license had expired during COVID and I didn't even realize it when I filed. I was also counting on a refund advance from H&R Block that I thought I might lose access to. What ended up happening was my return was accepted normally - no questions about the license. When I called about the advance issue, they actually had a separate system for handling the advances that wasn't directly tied to the return submission. I explained my situation, gave them my application number from the original approval email, and they were able to reactivate it for me. Took about 35 minutes on the phone but they sorted it out. The advance hit my account about 2 days later, and then my actual refund came about 3 weeks after that.

This is really helpful information from everyone! I'm dealing with something similar - I accidentally put the wrong expiration year on my license info when filing through FreeTaxUSA. Reading through all these responses, it sounds like the IRS won't reject my return for this mistake, which is a relief. @Javier Cruz - thanks for starting this thread, it's exactly what I needed to see. The consensus seems to be that DL expiration dates aren't part of their automated verification system. @Chloe Robinson - your experience with H&R Block gives me hope! I'm in a similar boat with a refund advance that I'm worried about losing access to. Going to try calling their dedicated tax support line like @Omar Hassan suggested rather than going through general customer service. Has anyone here actually had their return accepted with a completely expired license (like expired over a year ago)? Just want to make sure there's not some threshold where it does become an issue.