Has anyone actually read the full Glenshaw Glass opinion? I just did and I'm not sure it's as clear-cut as some are making it out to be. The case was really about whether money from punitive damages counted as income, not about unrealized gains specifically. The phrase everyone quotes about "clearly realized" gains was part of a broader definition and might not be the constitutional barrier everyone thinks it is. I'm not saying unrealized gains taxes ARE constitutional - just that this particular case might not be the slam-dunk argument against them that people claim.

Great point about Eisner v. Macomber! That 1920 case is actually more directly on point than Glenshaw Glass for this issue. The Court ruled that a stock dividend wasn't taxable income because it was just a paper increase in value without any actual receipt of money or property that could be "severed" from the capital. The Court specifically said that income requires "the gain derived from capital, from labor, or from both combined" that has been "received or drawn by the recipient" for their separate use. Just holding an appreciated asset doesn't meet this test because you can't actually use that gain - it's still tied up in the original investment. This is why I think any unrealized gains tax would face serious constitutional challenges. The Supreme Court has been pretty consistent over the past century that you need some kind of actual receipt or realization event before something becomes taxable income under the 16th Amendment.

Just to add another data point - I recently applied for my EIN for a project management SAAS and also selected "Service" based on advice from this community. The application was approved without any questions or delays. One tip that helped me feel more confident: I looked up how established SAAS companies like Salesforce and HubSpot are classified, and they're all considered service providers rather than retail. The IRS really does view software subscriptions as providing ongoing access to a service rather than selling a product, so "Service" is definitely the way to go for your application.

This thread has been incredibly helpful! I'm launching a customer support automation SAAS next month and was facing the exact same dilemma. Based on all the experiences shared here, I'm confident that "Service" is the right choice for my EIN application. What I found most valuable was learning that this category selection is primarily for statistical purposes and won't lock me into any specific tax treatment later. The comparison to established companies like Salesforce and AWS really drove the point home - we're providing ongoing access to software functionality, not transferring ownership of a product. Thanks especially to those who shared their real experiences with successful applications. It's one thing to read the theory, but hearing from people who actually went through the process recently and had their EINs approved gives me the confidence to move forward without overthinking it.

Something similar happened to me last year and I finally got it resolved by filing a police report for theft. Sounds extreme but it worked! Once I had the police report, I sent it to both Chase and the IRS with a formal letter stating that I would be pursuing criminal charges against anyone withholding my rightfully owed tax refund. Magically, within 2 weeks my refund was reissued. Sometimes you have to play hardball when everyone is passing the buck. Just make sure you document EVERYTHING and keep all communications professional.

I went through this exact same situation two years ago with a $4,800 refund that went to the wrong account due to my tax preparer's mistake. Here's what finally worked for me: First, definitely contact the Taxpayer Advocate Service as mentioned earlier - they were crucial in my case. But also file a formal complaint with the Treasury Inspector General for Tax Administration (TIGTA) at https://www.treasury.gov/tigta/contact_report_waste_fraud.shtml. This creates an official investigation into the IRS's handling of your case. Second, send a certified letter to Chase's Executive Customer Relations department (not regular customer service) citing 12 CFR 210.28 - this is the federal regulation that governs erroneous ACH deposits. In your letter, state that under this regulation, they have an obligation to work with the originating depository financial institution (the Treasury) to resolve erroneous deposits. Third, contact your state's banking commissioner to file a complaint against Chase. Banks hate regulatory complaints and often resolve issues quickly to avoid further scrutiny. The key is creating multiple pressure points simultaneously. It took about 6 weeks, but I eventually got my full refund reissued. Don't give up - this money is legally yours and there are established procedures to get it back, even if everyone initially claims it's not their problem.

Has anyone else had their ERC amended returns rejected? I filed mine with help from one of those ERC specialty firms, and the IRS rejected everything saying we didn't qualify. Now the firm is saying they don't provide audit support unless I pay additional fees! Total nightmare.

This is exactly the kind of situation that highlights why working with reputable ERC consultants is so important. Many of the "ERC mills" that popped up were more focused on volume than actually ensuring businesses qualified. If your amended returns were rejected, you'll want to carefully review the IRS notice to understand their specific objections. Common issues include: not meeting the required decline in gross receipts, failing to demonstrate a qualifying government shutdown order affected operations, or issues with the wage calculations. You should definitely push back on that consulting firm about audit support - any legitimate ERC consultant should stand behind their work, especially if they assured you that you qualified. Many states are also investigating these ERC companies for misleading practices. If you're dealing with an audit or rejection, consider getting a second opinion from a qualified tax professional who can review your original qualification determination. Don't pay additional fees to the same firm that may have gotten you into this mess in the first place.

I'm in exactly the same situation! Filed my 2023 return three weeks ago and it's been stuck on "Return Received" ever since. The waiting is driving me crazy, especially when you need that refund money. From what I've researched, the IRS is really backed up this year. A lot of people are experiencing longer processing times than the usual 21 days they advertise. I've been trying to stay patient but it's hard when you see the same status message day after day. One thing that's helped my anxiety a bit is remembering that "Return Received" means they actually have it in their system and it's not lost somewhere. I know it doesn't feel like progress, but at least we're in the queue. Has anyone here actually had success getting useful information from calling the IRS line? I'm debating whether it's worth the hours on hold just to hear "your return is being processed" which is what the website already tells us.

Same exact situation here! Filed my 2023 return on January 28th and it's been stuck on "Return Received" for over two weeks now. The daily checking is becoming obsessive but I can't help myself 😅 What's really getting to me is that friends who filed after me have already gotten their refunds approved. Makes you wonder if there's something specific triggering the delays this year. I've triple-checked my return and everything looks correct. I did try calling that 1-800-829-1040 number last week but gave up after being on hold for 3 hours. Might try the early morning strategy someone mentioned. The uncertainty is the worst part - at least if they gave us a rough timeline we could plan accordingly. Thanks for posting this, it's oddly comforting to know so many of us are in the same boat right now!