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Couple things I learned from buying an EV for my business last year: 1) The business EV credit doesn't have the same income limits as personal credit 2) If business buys it, you can potentially take bonus depreciation 3) Lease vs buy makes a huge difference 4) Double check which credit the specific EV qualifies for - some only get partial credit now 5) State incentives sometimes ONLY apply to personal purchases Talk to an accountant who specifically knows EV tax stuff. Regular CPAs often mess this up cause the rules change so much.
Great question! I went through this exact decision last year with my consulting business. Here's what I learned: The key factor is legitimate business use percentage. If your wife will use the EV >50% for business, buying through the business generally makes more sense. If it's primarily personal (<50% business use), personal purchase with business mileage deduction is usually better. For a new business that might show a loss: Personal purchase could be smarter because you get the immediate $7,500 tax credit (assuming income qualifies), plus you can still deduct business mileage at the standard rate. If the business buys it but shows a loss, those depreciation deductions don't help you right now. Don't forget to check: - Which specific EV models qualify for full vs partial credit - Your state's incentives (some only apply to personal purchases) - Whether leasing might be better (dealers can pass through credits as reduced payments) I'd recommend running the numbers both ways with actual projected income/expenses. The "right" answer really depends on your specific tax situation and how much business vs personal use the vehicle will actually see.
Had this exact thing happen to me in 2022! My advice: document EVERYTHING. Save all your incorrect paystubs, take screenshots of the wrong SSN, keep email chains with HR and payroll, etc. I ended up with issues even after they "fixed" it because the first 3 quarters of reporting had already been sent to the IRS with the wrong SSN. When tax time came, I had to file on paper instead of electronically, and I had to include a letter explaining the situation along with documentation. It delayed my refund by months but eventually got sorted out.
This is a serious issue that needs immediate attention. Since you mentioned this started in January 2024 and we're getting close to tax season, time is of the essence here. Beyond what others have mentioned about getting corrected W-2s, I'd also recommend contacting the IRS directly to report the situation proactively. You can call the IRS Business & Specialty Tax Line at 1-800-829-4933 to explain the situation and create a paper trail. This way, if there are any discrepancies when your employer files their quarterly reports, the IRS will already have a record of the issue. Also, make sure to request a Social Security Statement from the SSA to verify that your earnings are being properly credited to your account. You can do this online at ssa.gov. If the wrong SSN was used, your earnings might not be showing up correctly, which could affect your future Social Security benefits. One more thing - if your employer uses a third-party payroll service like ADP, make sure the correction flows through to ALL systems, not just the paystub generation. Sometimes these fixes only get applied to one part of their system while other reporting functions still use the old information.
For anyone still working on their ERC claim, be extremely careful about the documentation. I'm an office manager who handled our company's claim last year, and we just got notification of an audit. The IRS is scrutinizing these claims heavily! Make sure you have: - Specific documentation showing how COVID restrictions directly impacted your operations - Revenue comparisons by quarter showing exact percentage drops - Documentation proving you weren't double-dipping with PPP funds for the same wages - Complete and accurate quarterly payroll records The IRS is especially focused on the "partial suspension of operations" qualification. If you're claiming under that (rather than revenue drop), you need extremely solid evidence connecting government orders to your specific business limitations.
Did you use a specialized ERC company or your regular accountant? Wondering if the "ERC mills" are more likely to trigger audits?
We used our regular accountant who was very conservative in his approach. He actually turned away some of his clients who wanted to claim ERC but didn't have strong qualification evidence. From what I've heard from colleagues in similar businesses, the audit selection seems somewhat random rather than being tied to who prepared the claim. What matters more is the quality of documentation and whether your claim has any red flags (like claiming 100% of employees qualified when your business was partially operational, or claiming credits for periods where you also used PPP funds for the same wages). The specialized "ERC mills" might be more aggressive in pushing borderline claims through, which could increase audit risk.
I'm in a similar situation - small business owner who kept employees during COVID but haven't filed for ERC yet. This January 31st deadline is really concerning! From what I'm reading here, it sounds like the key is having solid documentation ready. We had a 35% revenue drop in Q2-Q3 2020 and kept all 8 employees on payroll. I've been procrastinating on this because the paperwork seemed overwhelming, but with potentially $200k+ in credits at stake, I need to act fast. Has anyone successfully filed in the last few weeks of the deadline? I'm worried about the IRS being swamped with last-minute applications and potentially rejecting claims due to processing backlogs. Also wondering if there's any chance Congress might extend this deadline given how short the notice period is for legitimate businesses.
Has anyone who experienced this actually received their refund yet? And if so, did you have to provide any additional documentation to the IRS, or did it just eventually process on its own?
I'm dealing with the exact same situation! Filed on March 5th, got the 5-day denial on March 12th, and now my SBTG account shows "not found" as of yesterday. As a fellow gig worker, this is really stressing me out since I need to make my Q1 estimated payment soon. Based on what everyone's sharing here, it sounds like this is unfortunately normal for our type of returns this year. I'm going to check my transcript tomorrow to look for those TC 570 and TC 971 codes that were mentioned. Really hoping this resolves within the 7-14 business day timeframe that Nora mentioned. Has anyone found that contacting the IRS actually helps speed this up, or should I just wait it out?
Maxwell St. Laurent
Does anyone know what software the IRS is using these days? I heard they were still running on systems from the 1960s for some of their core processes. Maybe instead of hiring 87,000 people they should spend some of that money upgrading their tech?
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PaulineW
ā¢They're still using COBOL programming language for their main databases, which was created in the 1950s! I saw an article that they have over 60 different case management systems that don't talk to each other. No wonder they're inefficient.
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Ryan Young
The technology issue is a huge part of the problem! I work in federal IT contracting and the IRS modernization efforts have been ongoing for decades with mixed results. They're actually allocating about $3.2 billion of the new funding specifically for IT upgrades, including replacing those ancient COBOL systems. The challenge is that you can't just flip a switch and modernize everything overnight when you're dealing with systems that process 240+ million tax returns annually. They have to maintain the old systems while building new ones, then carefully migrate data without losing anything or creating security vulnerabilities. But you're absolutely right that better technology could reduce the need for some of those 87,000 hires. Automated processing, better taxpayer self-service portals, and AI-assisted correspondence could handle a lot of the routine work that currently requires human intervention. The IRS has been piloting some chatbot technology and online account features that show promise.
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