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Thank you for posting this! I was literally about to call the IRS hotline again after seeing that message for the 3rd week straight. It's reassuring to know that "still being processed" is just their standard way of saying "we're working on it" rather than code for "something's wrong." Definitely saving me some stress and phone time š
According to the IRS website (https://www.irs.gov/individuals/get-transcript), the different transcript types update on different schedules. The Account Transcript is typically the most up-to-date and accurate reflection of your return status. If that shows your return was filed, you should be good. The Wage & Income Transcript can lag behind by several weeks during busy filing seasons.
I experienced this exact same issue last year! It's actually pretty normal - the IRS has multiple database systems that don't sync up in real time. Your account transcript is the authoritative source, so if that shows your return was filed, you're all set. The wage transcript system runs on a different update cycle and can take 2-6 weeks to catch up, especially during peak filing season. Since you mentioned needing the refund for your husband's PCS move, I'd recommend checking your account transcript for processing codes like TC 150 (return posted) and TC 846 (refund issued). If you see those, your return is definitely in the system and processing normally despite what the wage transcript shows.
Have you considered that your Form 2553 might have been filed late originally? There's a specific rule that Form 2553 must be filed either within 2 months and 15 days of the beginning of the tax year the election is to take effect, OR at any time during the tax year preceding the tax year it is to take effect. If you missed this deadline, you might need to request relief under Revenue Procedure 2013-30, which allows for late S corporation elections. This involves attaching a statement explaining why you had "reasonable cause" for filing late.
This is actually really important. Many accountants don't realize how strict the S-corp election timing requirements are. I've seen so many businesses get caught by this technicality. The form requires a specific effective date and if that date doesn't comply with the timing rules, the IRS will reject it or process it for a future year.
I'm dealing with a very similar situation right now with my 2022 return. The IRS initially accepted my 1120-S but then sent a rejection letter months later claiming they had no record of my S-corp election. What's frustrating is that I filed Form 2553 well within the deadline and have the certified mail receipt. One thing that helped me understand what happened was requesting my Entity Control Document (ECD) from the IRS Business Master File. This shows exactly how they have your business classified in their internal system versus what your actual filings indicate. You can request this by calling the Business & Specialty Tax Line or including it in your written correspondence. In my case, the ECD showed that someone had manually entered my business as a "disregarded entity" (single-member LLC) even though my formation documents clearly established a corporation. This was purely a data entry error on their end. I'm now working with a tax attorney to file a formal protest of the rejection along with all supporting documentation. The key seems to be proving that any classification error originated from IRS processing mistakes rather than incorrect filings on your part. Since your business is dissolved, you might want to act quickly as there are time limits on how long you can dispute these issues. Have you tried requesting your complete business file from the IRS to see exactly what they have on record?
Navy Fed member here. I've tracked my deposits over the last three years. Here's what happens: 1) IRS assigns your DDD on transcript with code 846. 2) IRS initiates ACH transfer 1-2 days before DDD. 3) Navy Fed posts it as soon as they receive it, not on the official date. 4) Most people see it 1-2 days early, but not always. Drives me crazy when people say they always get it early because it's not guaranteed!
Navy Fed member for 3 years here! Can confirm they do release early sometimes, but like @Anastasia Sokolov said, it's not guaranteed. What I've noticed is it seems to depend on what day of the week your DDD falls on. When my DDD was on a Friday last year, I got it Wednesday. But when it was on a Tuesday, I only got it one day early on Monday. The ACH system doesn't run on weekends, so that might explain the pattern. Also worth noting - make sure your account info is exactly right because any mismatch can delay things significantly!
Darren Brooks
I had the same issue and TurboTax customer service gave me the wrong advice! They told me to file with my new married name, which caused my return to get rejected twice. Is there a specific tax software that handles name changes better than others?
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Rosie Harper
ā¢I've used H&R Block for years and they have a specific section about recent name changes that explains exactly what to do in your situation. Their guidance clearly states to use whatever name is currently on your Social Security card.
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QuantumQuasar
I went through this exact situation last year! The key thing to remember is that your name change with SSA isn't official until you receive your new Social Security card - just submitting the application online doesn't update their systems immediately. You should definitely refile your return using your maiden name (whatever name is currently on your Social Security card). Since your return was rejected, this won't count as an amended return - you're just correcting the initial filing. Don't worry about the deadline - you have time to get this sorted out. The important thing is to use the name that matches what's in the Social Security Administration's current records. Once your name change is processed and you get your new card, future tax years will use your married name automatically. I know it's frustrating being in this limbo period, but it's actually a pretty common issue for newlyweds. Just stick with your maiden name for this year's taxes and you should be good to go!
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Miguel Ortiz
ā¢This is really helpful advice! I'm in a similar situation but wondering - if I file with my maiden name this year, do I need to notify the IRS when my name change goes through? Or will they automatically update their records once SSA processes everything? Also, for next year's taxes, should I wait until after I get my new Social Security card to file, or can I file as soon as the name change is official with SSA even if the physical card hasn't arrived yet?
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