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Anyone using a CPA to handle their ERTC claims? I'm nervous about doing this myself since there's so much money at stake. My restaurant could qualify for around $150k across all quarters, and I don't want to mess anything up.
Definitely use a CPA who specializes in ERTC. I tried doing it myself initially and completely underestimated the complexity. My CPA found several additional qualifying periods I hadn't identified and increased my claim by about 40%. Their fee was well worth it.
Be careful about which "expert" you hire. There are a ton of ERTC mills out there charging huge percentages (15-25%) for basically filling out a form. A good CPA will charge a reasonable hourly rate or flat fee, not a percentage of your refund.
I'm in a similar boat - filed my 941X for Q2 and Q3 2020 ERTC credits back in March and still haven't heard anything. The uncertainty is killing me because I need to plan my cash flow for the rest of the year. One thing I learned is that you can request a copy of your account transcript by calling the business tax line or mailing Form 4506-T. It won't tell you exactly when you'll get paid, but it will at least confirm that the IRS has received and processed your filing. Sometimes amended returns get lost in the system, so it's worth checking. Also, make sure you kept detailed records of everything - payroll records, documentation of business impact from COVID, etc. I've heard some people are getting additional requests for documentation months after filing, which obviously delays things even more.
Great advice about the account transcript! I didn't know you could request that. I'm also waiting on my ERTC refund from a February filing and the uncertainty is really stressful. Quick question - when you call the business tax line for the transcript, do they actually answer or is it the same endless hold situation as the regular IRS line? I've been hesitant to try because I've wasted so many hours on hold already, but if there's a better chance of getting through I'd definitely give it a shot.
I actually went through this exact situation with my eco-friendly t-shirt company. Ultimately, I chose to create a hybrid model - I have an LLC for the business operations, but I also created a separate nonprofit foundation that receives a portion of profits as donations. This gives me flexibility while still achieving the charitable mission. The LLC allows me to take a reasonable salary and cover all business expenses, while the nonprofit foundation handles the charitable giving. Just be prepared for some setup costs with the nonprofit side (~$800 for 501c3 filing) and ongoing compliance requirements.
This is such a common dilemma for social entrepreneurs! I went through something similar with my tutoring business where I donate a percentage to education nonprofits. One thing that hasn't been mentioned yet is the timing strategy for charitable deductions. Even if you're stuck with pass-through taxation on your LLC profits, you can potentially bunch your charitable donations in alternating years to exceed the standard deduction threshold and maximize your itemized deductions. For example, instead of donating $10K each year, you could donate $20K every other year and take the standard deduction in the off years. This can significantly reduce your overall tax burden over time. Also, consider documenting everything meticulously from day one - contemporaneous records of your charitable intent, board resolutions if you have multiple LLC members, and clear separation between business and personal expenses. This will be crucial whether you stick with the LLC structure or eventually transition to a nonprofit. Have you thought about what happens if your sticker business grows beyond what you initially expected? It might be worth planning for different revenue scenarios now rather than having to restructure later.
Has anyone used their betting app's year-end summary as documentation for losses? My FanDuel account has a tax document that shows my total deposit, withdrawals, winnings and losses. Wondering if that's enough for the IRS?
I used my DraftKings annual statement last year and it was fine. Just make sure you save a PDF of it rather than just viewing it online since some apps only make those statements available for a limited time. Also good to have bank statements that match up with the deposits/withdrawals as backup.
I went through this exact same situation last year with my Venmo 1099-K from sports betting. The stress was real! Here's what I learned after consulting with a tax professional: 1. Yes, you do have to report the full $7300 as gambling income on your tax return, even though it includes your original deposits. 2. You can deduct your gambling losses (the $4700 you put in) but ONLY if you itemize deductions on Schedule A. This means you can't take the standard deduction. 3. The key decision is whether itemizing saves you more money overall than taking the standard deduction. For 2024, the standard deduction is $14,600 for single filers. If your gambling losses plus other itemizable deductions (mortgage interest, state taxes, charitable donations, etc.) exceed that amount, then itemizing makes sense. 4. Keep ALL your records - bank statements showing transfers, screenshots of betting account activity, and any year-end statements from your betting apps. The unfortunate reality is that if itemizing doesn't benefit you, you could end up paying taxes on the full $7300 rather than just your $2600 profit. This is a common frustration for casual gamblers. Consider talking to a tax pro if the numbers are significant - sometimes the consultation fee is worth it for peace of mind and making sure you're handling everything correctly.
This is super helpful, thank you! I'm in a similar boat but wondering about one thing - do you know if there's any way to avoid this whole mess in the future? Like, should I stop using Venmo for transferring money to/from betting accounts? I've heard some people say to use direct bank transfers instead to avoid getting hit with these 1099-K forms, but I'm not sure if that actually works or if it's even legal to try to avoid them that way.
Pro tip: The best way to understand your 810 freeze is to use taxr.ai - way better than trying to piece together info from random reddit posts. It costs $1 but gives you a complete analysis of your transcript and estimated resolution date. Been using it weekly to track my progress.
Scary accurate. It called my DDD within 2 days of when it actually hit. The AI looks at patterns from thousands of transcripts
Filed 1/15 and been dealing with 810 freeze for over 3 weeks now. WMR hasn't budged from "still processing" but my transcript shows the freeze code. Really hoping to see some movement soon - bills don't stop coming just because the IRS is taking their sweet time! Has anyone noticed any patterns with when these typically clear?
Giovanni Gallo
Another option is to contact your Congressional representative's office! A lot of people don't realize this, but they often have staff dedicated to helping constituents with federal agency issues, including IRS problems. My brother was waiting on a $6,200 refund for almost 6 months and got nowhere until he contacted our Congressman's office. They have special channels to inquire about these things and his refund was processed within 3 weeks after they got involved. Just go to house.gov and enter your zip code to find your rep, then call their office and ask to speak to the staff member who handles IRS cases. Worth a shot!
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Fatima Al-Mazrouei
β’This actually works! I was skeptical but after waiting 4 months for my refund I called my congresswoman's office and they have a form specifically for IRS issues. Had to sign a privacy release but their caseworker called me back in 2 days and got things moving. Refund showed up about 2 weeks later.
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Ben Cooper
I've been dealing with a similar situation for the past 4 months - filed in March and still waiting on a $2,800 refund. After reading through all these suggestions, I'm definitely going to try the Taxpayer Advocate Service route first since I can document the financial hardship this delay has caused me. For anyone else in this boat, I also wanted to mention that you can request your tax transcript online at irs.gov to see if there are any specific codes or flags on your account. It's free and might give you some clues about what's causing the holdup before you spend time on hold or pay for a service. The transcript will show processing dates and any error codes that might explain the delay. Has anyone had success getting their transcript and figuring out the issue themselves? I'm going to pull mine today and see what it shows.
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