I see a lot of detailed responses here already but wanted to add that timing matters too. If you formally dissolved your sole proprietorship and formed the LLC as a completely separate entity with new EIN, business accounts, etc., you might have a stronger case for treating it as a new business eligible for startup costs rather than just organizational costs. Did you completely close out the sole prop and start fresh, or was it more of a conversion? That distinction can matter for how the IRS views it.

That's exactly the right approach, Khalil! Since you kept the same EIN and it's a single-member LLC taxed as a disregarded entity, the IRS will definitely view this as a continuation of your existing business rather than a startup. Your $6,700 in formation costs should be treated as organizational expenses under Section 248. You can deduct $5,000 immediately and amortize the remaining $1,700 over 15 years (about $113 annually). Make sure to keep detailed records separating the LLC formation costs (legal fees, state filing fees, operating agreement drafting) from any regular business expenses you might have incurred during the transition. One tip: if you had any costs related to transferring assets from the sole prop to the LLC (like updating contracts or transferring licenses), those might be treated differently than the pure organizational costs, so keep those receipts separate as well.

Mine just hit my account!!! I had the same DDD of 2/24 with H&R Block and was getting so worried! I literally just checked my account after obsessively refreshing all day and it's there! I'm so relieved! I was starting to think something had gone wrong with my return. Check your accounts now - they might be processing a batch right now!

Just wanted to share an update for anyone still waiting! I had the same DDD of 2/24 with H&R Block and mine finally showed up this morning around 6:30 AM. Based on what I'm seeing here and from talking to others, it looks like H&R Block is definitely processing these in waves rather than all at once like they used to. For what it's worth, I used the Refund Transfer option (where they take fees out of the refund) and bank with a smaller regional credit union. The timing seems pretty random this year - some people got theirs days early, others right on the DDD, and a few are still waiting even past their date. @Zoe - since you need those funds for your flight next week, you might want to call H&R Block directly with your confirmation number. They can sometimes see if there are any holds or processing issues on their end. Also, if you're really in a pinch, some banks will provide a provisional credit if you can show them the DDD documentation, though that varies by institution. Hope this helps ease some anxiety for everyone still refreshing their accounts!

Serious question: Has anyone successfully claimed their dog as a dependent? Asking for a friend... 🐶💼

I'm dealing with something similar! Filed in early March and did the identity verification about 3 weeks ago. Still stuck on "received" status too. What's really frustrating is that they give you these timeframes (like "21 days after verification") but then there's no follow-up when they don't meet them. I've been checking the transcript tool that @Anastasia Sokolov mentioned - it does show a bit more detail than the basic refund tracker. Hang in there, hopefully we'll see movement soon! 🤞

Just wanted to add that I made this exact same mistake last year! The IRS actually flagged my return and sent me a notice because I had dental insurance premiums on both Schedule C and as part of my self-employed health insurance deduction. It created a total mess.

I went through this exact same frustrating situation last year! As a self-employed contractor with marketplace insurance, I learned the hard way that dental insurance premiums need to be handled very carefully to avoid messing up your premium tax credits. Here's what I discovered: Your dental insurance premiums should be combined with your health insurance premiums and entered as one total amount under the "Self-Employed Health Insurance Deduction" on your Form 1040 (not Schedule C business expenses). This keeps it separate from your AGI calculation that affects premium tax credits. The reason your refund went down is exactly what Diego explained - by lowering your AGI with a business expense, you're triggering a recalculation that makes you owe back some premium tax credits. But when you properly categorize dental premiums as part of your self-employed health insurance deduction, it doesn't create this circular problem. In TurboTax, remove the dental premium from business expenses and add it to your total health insurance amount in the self-employed health insurance section. You should see your refund go back up to where it was before, plus get the benefit of the dental deduction without the premium tax credit penalty!

Did you check if the address IRS has on file for you is current? I moved in 2021 and never got any notices until the final one cuz they were sending everything to my old address. You can update your address with them using Form 8822 and also request copies of any previous notices they claim to have sent.

I'm so sorry you're going through this stress! I had a very similar situation last year with a CP503 notice that seemed to come out of nowhere. Here's what I learned from my experience: First, don't panic - these notices can look scarier than they actually are. The IRS computer systems often generate inflated amounts when they think forms are missing, but once you provide the correct documentation, the amount owed frequently drops significantly or disappears entirely. Since you mentioned you paid a tax professional, definitely start there. They should have records of exactly what was filed and can tell you immediately if Form 8949 was included. If it wasn't, that's likely the entire problem - the IRS sees crypto transactions reported on other forms but no supporting detail form, so their system assumes you underreported. Also, request a wage and income transcript from the IRS website for 2021. This will show you exactly what third-party reports (like from crypto exchanges) they received about your transactions. Sometimes exchanges send corrected forms that you never saw, which can create discrepancies. The key is responding within their deadline with proper documentation. Even if your tax preparer made an error, you can usually resolve this without owing the full amount they're claiming. Good luck!