Quick tip: When you mail a late return, write the tax year in BIG, BOLD numbers on the top of the 1040. I filed some late returns and the IRS agent I spoke to said they sometimes get misprocessed as current year returns if the year isn't super obvious, which causes all kinds of problems.

Just wanted to add that you should also make copies of EVERYTHING before you mail it - your return, your check, any supporting documents. Keep these copies in a safe place along with your certified mail receipt. I learned this the hard way when the IRS claimed they never received my late 2019 return even though I had proof I mailed it. Having those copies saved me because I could prove exactly what I had filed and when. The IRS processing centers are still dealing with backlogs and things do occasionally get lost in the system. Also, if you're including a check for $740, consider using a money order instead. Personal checks can bounce if there are any delays in processing (which is common with late returns), and bounced payment fees from the IRS are brutal. A money order gives you the same paper trail but eliminates that risk. Good luck with your filing - better late than never!

FYI - there's also the National Taxpayer Advocate office that handles more systemic issues. Different from the local TAS offices that handle individual cases. Prob not what you need rn, but good to know the diff. Also, TAS has been super backed up since COVID started and they never fully recovered their staffing. Might be worth trying to reach a regular IRS agent first to check your amended return status before escalating to TAS.

I actually got through to TAS about 6 weeks ago using that 1-877-777-4778 number. Here's what worked for me: I called at exactly 7:00 AM EST on a Tuesday and got connected after about 25 minutes on hold. The agent was really helpful once I explained that my amended return had been sitting for 5 months with no movement despite multiple calls to regular IRS lines. One thing that helped my case was that I had documentation showing the delay was affecting my ability to get a mortgage pre-approval. TAS seems to prioritize cases where you can show concrete financial impact from the delay, not just general frustration (though trust me, I was plenty frustrated too). Also, make sure you have your Individual Taxpayer Identification Number (ITIN) or SSN, the tax year in question, and your most recent contact with the IRS documented before you call. They'll ask for all of this upfront to verify your case qualifies for their assistance. Good luck - the wait times are brutal but once you get through, they're actually pretty effective at cutting through the red tape!

Check if you got any letters in the mail. My 570 was bcuz they needed to verify my identity

I'm going through the exact same thing! Had N/A for almost 2 months and just got the 570 code this week. From what I've researched, it usually means they're doing some kind of review but at least our returns are finally being processed. Trying to stay patient but it's so hard when you're counting on that refund 😅

I might have a different perspective than others here. I explored the multi-entity structure with IP holdco for my software business ($600K revenue) and ultimately decided AGAINST it. The annual compliance costs and complexity weren't worth the tax savings for me. Instead, I focused on maximizing other tax strategies like R&D tax credits, which gave me about $47K in tax savings last year with much less overhead. Sometimes simpler is better, especially at our size. Once I hit $2M+ in revenue, I'll reconsider the more complex structure.

As someone who's been through this exact decision process, I'd suggest starting with a comprehensive analysis of your specific situation before jumping into any complex structure. At $750K revenue, you're right at the threshold where it could make sense, but the devil is really in the details. A few key questions to consider: What's your current effective tax rate? How much of your revenue comes from IP licensing vs. direct software sales? Are you planning significant growth in the next 2-3 years? The answers will heavily influence whether the complexity is worth it. For what it's worth, I started with a simpler structure (single LLC with good tax elections) and gradually added complexity as my business grew. Sometimes it's better to implement these changes in phases rather than trying to build the perfect structure from day one. You can always restructure later when the tax savings clearly justify the additional overhead. Also worth noting - make sure you have a solid business reason for the structure beyond just tax savings. The IRS looks much more favorably on arrangements that have legitimate business purposes like asset protection, operational efficiency, or risk management.

Has anyone here actually received their sales tax permit deposit back? My state (Florida) promised a refund after 3 years too, but when the time came they claimed I had filed one of my monthly returns 2 days late in year 2, so they kept the entire $500 deposit. Wondering if this is common practice.

Great question! I went through this exact same situation with my LLC last year. The advice about treating it as an asset is spot on - don't expense it initially since you're expecting to get it back. I set up a "Deposits - Refundable" asset account in my accounting software and recorded the $500 there. One thing I'd add is to keep really good documentation about the deposit terms and your compliance with the requirements. Take screenshots of your filing confirmations, payment receipts, etc. Some states are pretty strict about the "good standing" requirements and will keep your deposit for minor issues. Also, if you're using QuickBooks, you can set up a reminder for when the 3-year period is almost up so you can proactively follow up on getting your refund rather than waiting for them to process it automatically.