I'm going through this exact same nightmare right now! My LLC was formed in October 2023 and we just discovered the same mistake - accidentally selected corporation instead of partnership during our EIN application. It's been about 9 months for us, so very similar to your timeline. Reading through all these responses has been incredibly helpful and reassuring. The clear consensus that Form 8832 is the right approach gives me so much more confidence than the conflicting advice I've been getting elsewhere. What really stands out to me is how many people have successfully corrected this same mistake, even after longer timeframes than ours. The IRS seems genuinely reasonable about these corrections when it's clear the mistake was unintentional and you follow the proper procedures. I'm planning to follow the proven approach that multiple people here have shared: - File Form 8832 with partnership election and retroactive effective date - Include a concise reasonable cause statement explaining the EIN application confusion - Attach our LLC formation documents and operating agreement - Make sure both partners sign - Send via certified mail to the specific service center address The fact that we haven't filed any returns yet under either classification definitely seems to work in our favor based on what others have experienced. Thanks so much to everyone who shared their stories - this thread has been a lifesaver for my stress levels and given me a clear path forward!

I went through this exact same situation about a year ago with my multi-member LLC! The stress and confusion you're experiencing is completely understandable - I also got wildly different advice from multiple IRS agents, which made everything so much more frustrating. Here's what I learned from successfully resolving this: **Form 8832 is absolutely the correct path.** Don't even consider getting a new EIN - that would create a massive headache down the road. The IRS has established procedures specifically for these entity classification corrections. **Your 8-month timeline is totally fine.** I've seen people correct this after 18+ months. The key is demonstrating that the mistake was unintentional and that you always intended partnership treatment for your LLC. **My process that worked:** - Filed Form 8832 requesting partnership classification with retroactive effective date to LLC formation - Checked Box 6 for late election relief - Included a one-page reasonable cause statement explaining the EIN application confusion - Attached our state LLC formation documents and operating agreement - Had both LLC members sign the form - Sent everything certified mail to the specific service center (different address than regular tax returns!) The IRS processed mine in about 11 weeks and sent a clear confirmation letter. Since you haven't filed any tax returns yet under either classification, your situation is actually much cleaner than many others who have to deal with amending prior returns. Don't let this stress you out too much - the IRS handles these corrections routinely when you follow the proper procedure. You've got a clear path forward!

Has anyone dealt with a situation where the house significantly appreciated between death and sale? My situation is similar but we didn't sell right away and now there's a huge gain from the stepped-up basis to sale price.

I'm dealing with a very similar situation right now with my grandmother's estate. One additional thing to consider that hasn't been mentioned yet - if the property was used as a rental before your aunt passed, you may also need to deal with depreciation recapture on Schedule D. This gets reported as ordinary income rather than capital gains and can significantly impact the tax liability. Also, make sure you get a proper appraisal of the property as of the date of death to establish the stepped-up basis. The IRS may question the valuation later, especially with a $425,000 property, so having professional documentation is crucial. I learned this the hard way when they asked for supporting documentation during my grandmother's estate audit. For the K-1 distributions to 20 beneficiaries, consider whether any of them are minors or have special circumstances that might affect how they report their share of the gain. This can get complex quickly with that many people involved.

I'm currently on day 5 of waiting for my ID.me verification and this thread has been absolutely invaluable! Like many others here, I had my video interview and then just radio silence. I was really starting to panic that it would somehow delay my refund processing, especially since I need to plan some quarterly business payments. But reading everyone's experiences has made it crystal clear that these are totally separate systems - such a relief! I've been religiously checking Where's My Refund and it shows my return (filed 17 days ago) is processing normally. It's amazing how many people are dealing with these same ID.me delays right now. Definitely going to try calling that customer service number someone shared. Thanks to everyone for sharing their experiences - knowing we're all in the same boat and that our refunds aren't affected makes this wait so much more manageable!

I'm dealing with the exact same ID.me verification nightmare right now - day 8 and counting since my video interview with absolutely no communication from them! This thread has been such a sanity saver though. I was genuinely panicking that it would somehow interfere with my refund processing since I have some major business purchases I need to time correctly. But seeing all these confirmations that the systems are completely separate has taken a huge weight off my shoulders. Filed my return 22 days ago and the Where's My Refund tool continues to show normal processing progress. It's honestly mind-blowing how many people are stuck in this same ID.me limbo - they're clearly overwhelmed this tax season. Definitely calling that 1-855-438-6343 number tomorrow to see if I can get any movement on my case. Thanks to everyone for sharing your experiences and timelines - it's so reassuring to know our refunds are moving forward regardless of this verification mess!

I compared exactly 5 different tax services offering advances this year. TaxAct gave me a $1,000 advance within 24 hours after acceptance, which was precisely 15% of my expected refund. No hidden fees whatsoever, and I received my full remaining refund exactly 17 days after filing. Their advance program has a 98.7% approval rate according to their customer service rep. Was relieved to find something that actually worked as advertised!

As someone who's been through the refund advance process multiple times, I'd add a few important considerations that haven't been fully covered yet: 1. **Timing matters** - Most advances are only available after January 15th when the IRS starts accepting returns, but some services open applications earlier for pre-approval. 2. **Bank account requirements** - Many services require you to receive the advance (and sometimes your full refund) on their branded prepaid card rather than direct deposit to your own account. This can create additional fees if you need to transfer money out. 3. **State tax complications** - If you owe state taxes or have garnishments, it can affect both your advance eligibility and final refund amount, leaving you potentially owing money back to the advance provider. 4. **Alternative option** - Some credit unions and community banks offer short-term "tax season loans" with better terms than commercial tax prep advances, especially if you're already a member. The key is reading ALL the fine print and having a backup plan if your actual refund doesn't match expectations. Hope this helps your community members make informed decisions!

This thread has been incredibly helpful! I'm dealing with a similar situation where my former employer is demanding repayment of a $30k signing bonus (gross amount) even though I only received about $22k after taxes. Based on what everyone's shared here, it sounds like since I'm repaying in the same tax year, they should only be asking for the net amount. I'm going to reference Revenue Ruling 79-311 and IRS Publication 15 when I talk to their tax department. One question though - has anyone had success getting their employer to put the corrected repayment calculation in writing? I want to make sure there's a paper trail showing they agreed to the net amount so there are no issues when I file my taxes next year. Also, for those who used the various services mentioned (taxr.ai, Claimyr), did you find them worth the cost? I'm trying to decide if I should invest in getting professional guidance or if the IRS publications and revenue rulings are sufficient to make my case.

I'm a CPA and want to add some clarity to this discussion. The key issue here is timing and proper tax reporting. For same-year repayments (which is your situation), your employer should indeed only request the net amount you received. This is because they can make what's called a "correcting entry" to their payroll records before year-end, essentially treating the bonus as if it was never paid. They recover the tax withholdings directly from the government when they file their quarterly payroll tax returns. However, I've seen many employers get this wrong because their payroll departments don't understand the distinction. Here's what I recommend: 1. Request a meeting with their tax/accounting department (not HR) 2. Reference IRS Revenue Ruling 79-311 and Publication 15, Section 13 3. Ask them to explain their "correcting entry" process for the W-2 adjustment 4. Get their revised calculation AND the process explanation in writing If they still refuse, you might consider filing a complaint with your state's department of labor, as demanding repayment beyond what you actually received could violate wage and hour laws in some states. The bottom line: you should only repay what actually hit your bank account when the repayment occurs in the same tax year as the original payment.