Should they still file identity theft paperwork if it was just the check that was stolen and not someone filing a fake return? Is that still considered tax identity theft or just regular check fraud?

Yes, they should absolutely still file the identity theft form. The IRS defines tax-related identity theft as anytime someone uses your personal information for tax purposes without permission. When someone manages to intercept and deposit a tax refund check, they've typically obtained enough personal information to compromise your tax identity. They likely know your name, address, SSN, and filing status. This level of information means they could potentially file a fraudulent return next year before you file your legitimate return.

I had this exact situation! In my case, someone had accessed my online tax account and changed my direct deposit information before my refund processed. The IRS initially told me it was my error too, but after filing Form 3911 and being persistent, they admitted their system showed the banking info had been changed after I filed. Make sure you specifically ask if your banking details were altered after your return was accepted. Sometimes the frontline representatives don't check the account change logs unless you specifically ask.

Does the Roth option for Solo 401k have income limitations like the regular Roth IRA? I've been avoiding looking into this because I thought I'd be over the income limits.

There are no income limitations for Roth contributions to a Solo 401k! This is one of the biggest advantages compared to Roth IRAs. You can make Roth contributions to the employee portion regardless of your income level. This is actually a great "backdoor" way for high-income earners to get money into a Roth account. Even if your S Corp starts doing really well and your income increases substantially in the future, you can still contribute to the Roth portion of your Solo 401k.

This is a really important point. The "reasonable compensation" requirement for S Corps needs to be balanced against maximizing the Section 199A deduction. With the pass-through deduction, you get a 20% deduction on your qualified business income (QBI), which is essentially your profit MINUS your salary. So there's a tradeoff - higher salary means more retirement contributions but less QBI deduction.

Yeh exactly! My accountant had me model different scenarios. If I paid myself $65k instead of $50k, I could put more in retirement but lost like $3k in QBI deduction. Gotta run the numbers both ways.

Thanks for confirming that this isn't normal! I was starting to think I was being unreasonable. The whole situation feels off to me, especially since they've been so hard to reach throughout the process. Do you think I should demand to see the return before paying, or just pay them to get it over with and never use them again? The Employee Retention Credit part makes me nervous since that's a pretty complex area.

I would politely but firmly request to see the completed return before paying. Explain that you need to review it for accuracy since you're legally responsible for what's filed. If they refuse, that's a major red flag. The Employee Retention Credit is extremely complex and has been an area where some preparers have been overly aggressive, leading to audits. You absolutely need to understand how they've calculated this credit before filing. Remember, if there's an audit, the IRS comes after you, not your preparer.

Yeah the ERC rules were crazy complex. My friend got hit with a huge audit because their preparer claimed it when they weren't actually eligible. The preparer disappeared and my friend was left holding the bag. Always be super careful with these special credits!

Thanks for the heads up about H&R Block. Do you know if there's a way to find CPAs who specialize in retirement accounts specifically? Should I be looking for any particular certifications or experience?

I'd recommend searching for a CPA who specializes in "individual tax planning" or "retirement tax planning" specifically. There's no special certification just for retirement accounts, but you want someone who regularly handles them. When you contact them, ask these specific questions: 1) How many backdoor Roth conversions do you handle annually? 2) Are you familiar with filling out Form 8606 for both non-deductible contributions and Roth conversions? Any CPA who hesitates on those questions probably isn't the right fit. The American Institute of CPAs (AICPA) website has a "Find a CPA" feature that lets you search by specialty, which could be a good starting point.

Exactly this! The IRS systems will assume the entire conversion is taxable if you don't have a properly filed 8606 showing your non-deductible basis. They have no way of knowing you already paid tax on that money otherwise.

Thanks for the warning about the wait time! I just want to make sure - does filing an amendment increase my chances of getting audited? I've heard mixed things about this and it makes me nervous about filing one.

Filing an amendment doesn't inherently increase your audit risk. Amendments are actually quite common - millions are filed every year. What might increase scrutiny is the nature of what you're amending. Something simple like claiming a credit you qualified for but forgot is pretty straightforward. The IRS is more likely to look closely if there are dramatic changes to income or if you're suddenly claiming unusual deductions that weren't on your original return. For something like EITC that you legitimately qualify for, just make sure you have documentation of your income and meet all eligibility requirements.

I second FreeTaxUSA! It's what I've used for the past 3 years and it hasn't missed any credits I'm eligible for. It asks very specific questions about EITC. Plus it lets you go back and review every form before submitting so you can double-check everything.