I'm dealing with a similar situation with my restaurant's ERC claim. Paid 28% to a firm that promised "specialized expertise" but it turned out they just had me fill out basic forms and submit payroll records. The whole process took them maybe 3 hours total for a $45,000 claim. What's really frustrating is that I later discovered my CPA could have handled the entire filing for a flat $2,500 fee, but the ERC company made it sound like it required some kind of specialized tax law knowledge that only they possessed. I'm definitely interested in exploring legal options, especially after reading about the class action mentioned here. Has anyone found success getting partial refunds from these companies outside of lawsuits? I'm wondering if it's worth trying to negotiate directly with them first before going the legal route.

I'm in a very similar boat with my accounting practice - I've been helping several clients navigate the aftermath of working with these ERC mills. What I've seen consistently is that legitimate ERC claims typically require 8-15 hours of work when done properly, including eligibility analysis, documentation review, and form preparation. The problem is many of these contingency firms were essentially running claim factories, processing hundreds of applications with minimal individual attention. A 25% fee on a properly vetted claim might be reasonable, but not when they're just plugging numbers into software and hoping for the best. One thing I'd strongly recommend is getting a second opinion on your claim's legitimacy before your refund comes through. With the IRS crackdown, they're auditing a significant percentage of ERC claims now, and if your original firm cut corners on documentation, you could face penalties that far exceed any contingency fee dispute. I've been referring clients to services like taxr.ai for post-submission reviews to make sure everything is properly documented. Better to identify potential issues now than during an audit later.

This has been such an educational thread! I'm in my third year with an S-Corp and still learning new things about Schedule L. One thing I wanted to add that hasn't been mentioned yet is the importance of keeping good records of your initial capital contributions. When I first set up my S-Corp, I didn't properly document my initial cash investment and equipment contributions. This caused major headaches when trying to calculate my starting shareholder basis and reconcile Schedule L in year two. I had to go back and recreate documentation with fair market values for equipment I'd contributed. For anyone just starting out with their S-Corp, make sure you properly document and value everything you put into the company from day one. It makes the Schedule L reconciliation process much smoother and helps with that shareholder basis tracking everyone's been discussing. Also, regarding the retained earnings differences - I've found that most of the confusion comes from not understanding that S-Corp "retained earnings" on Schedule L is really "Accumulated Adjustments Account" which behaves differently than regular corporate retained earnings. It's worth reading up on AAA vs retained earnings for S-Corps if you really want to understand what's happening behind the scenes.

As someone who went through this exact same confusion last year, I can totally relate to the Schedule L headaches! What finally made it click for me was realizing that Schedule L is essentially showing your company's financial position from the IRS's perspective, not your day-to-day accounting perspective. The retained earnings difference that's throwing you off is completely normal for S-Corps. Here's what's happening: when your S-Corp makes money, that income "passes through" to you personally for tax purposes, whether you actually take the cash out of the company or not. So if your company earned $50k but you only took $20k in distributions, your QuickBooks shows $30k in retained earnings, but the tax treatment is more complex. My approach now is to keep QuickBooks clean for business management, then create a simple reconciliation worksheet for Schedule L. I start with QB retained earnings, then adjust for things like: distributions (which reduce retained earnings for Schedule L), any book-vs-tax depreciation differences, and prior year adjustments. The key insight that helped me: don't try to make your books match Schedule L perfectly. Instead, understand the differences and document them. The IRS expects these differences for S-Corps - you just need to be able to explain them if asked. One last tip: start tracking your shareholder basis now in a separate spreadsheet. It's not directly on Schedule L, but it's crucial for knowing how much you can distribute tax-free in the future.

I'm really sorry to hear about your cousin's mom passing away. This is definitely a stressful situation, but from what I understand, he should be okay as long as he keeps making payments. The key thing is that most mortgage contracts don't have automatic acceleration clauses triggered by a co-signer's death - they're more concerned with getting paid than who's making the payments. Since your cousin has been the one actually making payments all along and has never missed one, that works strongly in his favor. My suggestion would be for him to call the mortgage servicer directly and ask to speak with their estate or borrower services department. He should be prepared with his mom's death certificate and ask specifically what their process is for removing a deceased co-signer. Most servicers have a standard procedure for this and will just need some paperwork filed. It might also help to get any confirmation in writing that the loan terms won't change and that regular payments can continue as normal. This would give him peace of mind and documentation if any issues come up later. The fact that he's been responsible for payments from day one should really work in his favor here. Banks generally don't want to foreclose on performing loans - it's expensive and risky for them too.

I'm sorry for your cousin's loss. This is such a common worry, but the good news is that most lenders won't call the loan just because a co-signer passes away, especially when the primary borrower has a solid payment history like your cousin does. The most important thing is for him to be proactive about notifying the lender. I know it seems scary, but hiding it could actually cause more problems down the road. When he calls, he should ask specifically about their "survivorship" policies and request written confirmation that the loan will remain in good standing as long as payments continue. One thing that might help ease his mind - if this is an FHA loan, there are federal protections specifically preventing lenders from accelerating the loan due to a co-borrower's death. Even with conventional loans, most major lenders have policies in place for exactly this situation since it's so common. The key is that he's been the one making payments all along and has never missed one. That payment history is his strongest asset here. Banks make money from borrowers who pay on time, not from foreclosures or forced refinancing. I'd also suggest he gather any estate documents he might need (like letters testamentary if he's handling his mom's estate) in case the lender requests them, but most of the time they just need the death certificate and a simple form to update their records.

This is actually a pretty common question around this time of year! As others have mentioned, you've hit the Social Security wage base limit. One thing I'd add is that if you have multiple employers during the year, you might actually overpay Social Security taxes since each employer withholds independently up to the limit. In that case, you'd get a credit on your tax return for the overpayment. But if this is from a single employer like it sounds, then everything is working exactly as it should. Enjoy the temporary pay boost through the end of the year!

This happened to me too! I was initially worried that payroll had made an error, but it's actually a good sign - means you're earning well! One thing I learned is that this creates a bit of a cash flow shift where you have more money now but will see your paycheck drop again in January when FICA taxes resume. I started setting aside a portion of that extra money each month so the transition back to lower paychecks in the new year wouldn't feel as jarring. It's also worth double-checking your year-to-date FICA withholding on your pay stub to confirm you're actually at or near the $175,800 limit for 2025.

This whole thread is giving me life! 🙌 As another February filer who's been stuck in the same endless waiting game, seeing your USPS notification and reading everyone's success stories is honestly the most hope I've felt in months. The fact that so many early 2023 filers are finally getting movement suggests the IRS might actually be working through our backlog - about time! That "Pre-Shipment" status is definitely anxiety-inducing but sounds totally normal based on everyone's experiences. Really really hoping this turns out to be your actual refund check and not another delay letter. After 10+ months of radio silence, you deserve some good news! The timing feels right with all the February filers finally seeing progress lately. This community has been such a sanity saver during this whole ordeal - we're all in this together! Please update us as soon as you know what's in that envelope. Fingers crossed this is the breakthrough we've all been waiting for! 🤞✨

Wow, reading through all these similar experiences is giving me chills! 🙌 I'm also a February filer and have been stuck in the same endless waiting game with absolutely zero updates from the IRS. Your USPS notification after 10+ months of silence is honestly the most encouraging thing I've seen in ages! The fact that so many people here have gone through the exact same "Pre-Shipment" status for 2-4 days before it moved to "In Transit" and turned out to be their actual refund checks is really reassuring. After months of obsessively checking WMR and transcripts with nothing to show for it, ANY movement feels like winning the lottery at this point! Really really hoping this is your breakthrough moment and not another delay letter. The timing seems perfect with all the February filers finally seeing progress lately - maybe the IRS is actually working through our backlog finally! This community has been such a lifeline during this frustrating process. Definitely keeping my fingers crossed for you and can't wait to hear the update when you get that mail! After everything we've all been through, we're due for some good news! 🤞✨