I think what's happening is like when you order a package online - sometimes the tracking never updates but the package still arrives. TPG is like the tracking system that's broken, but your money is still moving through the system. I'd give it until tomorrow morning before getting too worried. Almost everyone I've seen posting with similar dates has gotten their refund within 48 hours of TPG showing 'funded' even without emails or trace numbers.

Filed 2/26 here too and going through the exact same thing! TPG has shown "funded" since Tuesday but still no TurboTax email or trace number. After reading everyone's experiences, I'm feeling much more confident that the money is probably already on its way. It's reassuring to know this seems to be a widespread issue with their notification systems rather than something wrong with my specific return. Going to stop obsessively checking TPG every few hours and just wait for my bank to process it. Thanks everyone for sharing your timelines - really helps with the anxiety!

I'm in a similar situation but with a twist - I'm a German citizen with a US corporation, but I do take a small salary. My accountant filed Form 5472 but made a mess of it and now I'm dealing with follow-up questions from the IRS. Has anyone used TurboTax or any other software for this form? My accountant wants to charge me another $1500 to fix the issues he created.

I went through this exact scenario last year as a Canadian founder with a US-incorporated startup. Your accountant is absolutely correct to include Form 5472. The key issue that many founders miss is that even unpaid work constitutes a "reportable transaction" under current IRS rules. When you're making business decisions, developing strategy, or doing any work for your corporation without compensation, the IRS considers this a service provided by a foreign related party (you) to the US corporation. This triggers the Form 5472 requirement regardless of whether money changes hands. The "no reportable transactions" exception that you found is much narrower than it appears. It really only applies if you're a completely passive investor with zero involvement in business operations. Since you're the founder actively running the company, you definitely have reportable transactions. I'd recommend filing the form as soon as possible. If you're late, you can request penalty abatement based on reasonable cause - the fact that you genuinely misunderstood the requirements and sought professional advice can help your case. The $25,000 penalty is no joke for a bootstrapped startup, but acting quickly and showing good faith effort to comply usually results in reduced or waived penalties. Your accountant may be from a smaller firm, but they're giving you correct advice on this one. Better to file it properly now than face the consequences later.

Has anyone used the "safe harbor" rule to avoid this whole issue? I think if you withhold 100% of your previous year's tax liability (or 110% if your AGI was over $150k), you don't have to worry about penalties regardless of bonuses, right?

Great advice in this thread! I want to add one more consideration - timing matters a lot when you receive your bonus. If you got it late in the year (like Q4), the allocation method on Form 2210 Schedule AI becomes even more beneficial because it shows the IRS that you couldn't have reasonably withheld enough earlier in the year when you hadn't received that income yet. I had a similar situation with a December bonus that pushed me into underpayment territory. The standard calculation assumed I should have been withholding for that income all year long, but the allocation method properly showed that the income (and corresponding tax liability) only existed in Q4. One tip: keep really good records of your pay dates and withholding amounts by pay period. You'll need this info whether you're using tax software or tools like the ones mentioned above. Having everything organized makes the whole process much smoother.

Just want to add that the difference in penalties/interest between the CP2000 and CP3219a is normal. The CP2000 calculates projected interest through an estimated payment date. The CP3219a recalculates based on current date. Since you already paid more than what's on the CP3219a, you'll likely get a small refund once everything is sorted out (though it might take months). When I had this issue, they eventually sent me a check for about $47 without me even requesting it.

This is such a helpful thread! I'm dealing with a similar situation where I received a CP2000 last month and I'm terrified of making the same mistake. Based on what everyone's shared here, it sounds like the key is making sure you properly fill out the response form AND include payment, not just send a check. Can someone clarify exactly which boxes need to be checked on the CP2000 response form? I see there are options to agree, disagree, or partially agree with the proposed changes. If I agree with everything and want to pay the full amount, do I check "agree" and then also sign and date it? I want to make sure I do this right the first time so I don't end up in the same situation as OP with conflicting notices. Also, should I send the payment and response form together in the same envelope, or separately? The instructions aren't super clear about this.

FYI - it's actually better to have refunds direct deposited to your account instead of having checks sent through preparers. Always use your own bank info, never let them handle your money. Good luck getting this resolved.

This is absolutely infuriating and unfortunately way too common. As someone who works in financial services, I can tell you that what they're doing is 100% illegal. The moment that refund check was issued in your name, it became your property - not theirs to hold hostage. Here's what I'd recommend doing immediately: 1. Send them a written demand (certified mail) stating they have 24 hours to release YOUR check 2. Contact your state's consumer protection agency 3. File a complaint with the IRS Return Preparer Office 4. If they're part of a franchise, escalate to corporate immediately The fact that they suddenly said you could pick it up after mentioning the IRS tells you everything you need to know - they KNOW they're in the wrong. Don't let them get away with this predatory behavior. Document everything and make sure to warn others about this place once you get your money back. You shouldn't have to wait weeks for new SS cards when they already had sufficient documentation to file your return successfully. This is pure intimidation tactics.