One thing nobody mentioned yet - check if your spouse has ever been a victim of identity theft. My wife and I had a similar rejection and after weeks of back and forth, we discovered someone had filed a fraudulent return using her SSN the previous year, which put a flag on her SSN in the IRS system. We had to go through the identity theft resolution process with the IRS and file an affidavit. It was a pain but eventually got resolved. Might be worth checking your credit reports too just to be safe.

I went through something very similar last year! The key thing to understand is that the IRS rejection doesn't always tell you the exact problem - it just says there's a mismatch. In my case, it wasn't the SSN itself but how my husband's name was formatted. Here's what I'd recommend doing in order: 1. **Check the Social Security card character by character** - Look for spaces, hyphens, periods, or middle initials that might be on the card but not in your return (or vice versa). Even a missing period after a middle initial can cause rejection. 2. **Call SSA first, not the IRS** - The Social Security Administration at 1-800-772-1213 can tell you exactly how your spouse's name appears in their system. This is what the IRS cross-references against. 3. **Don't assume last year's format is still correct** - Sometimes the IRS tightens their matching algorithms or updates their systems, causing previously accepted formats to suddenly get rejected. If the SSA confirms everything matches and you're still getting rejected, then it might be worth exploring other causes like identity theft flags or prior year discrepancies. But start with the name formatting - that's the culprit in about 80% of these cases. The good news is once you identify the exact issue, the fix is usually simple and your amended return should process quickly!

Has anyone considered the fact that waiting just ONE MONTH would save potentially tens of thousands in taxes? I mean, I get the builder incentives might be good, but are they $15-20k good? Seems crazy to rush into a potentially big tax bill for a slightly better interest rate.

You might want to check if your move qualifies for a partial exclusion under the "unforeseen circumstances" provision. The IRS allows partial exclusions for moves related to health, employment changes, or other qualifying unforeseen circumstances. Moving closer to your kids could potentially qualify if it's for caregiving purposes or other family-related reasons that meet the IRS criteria. Even if you don't qualify for any partial exclusion, remember that you can add your selling costs (realtor commission, title fees, etc.) directly to your cost basis to reduce the capital gain. On a $415k sale with typical 6% realtor fees, that's about $25k in selling costs that reduce your taxable gain. Also, don't forget to include any capital improvements you've made since 2021 - new appliances, flooring, HVAC work, etc. These all increase your basis and reduce your gain. Keep all your receipts organized. Given the potential tax savings of waiting one more month versus the builder incentives, I'd run the actual numbers on both scenarios. Sometimes those builder rate buydowns are worth more than the tax hit, especially if you're planning to stay in the new home long-term.

I'm going through the exact same thing right now - filed 22 days ago and just got the delayed message yesterday. Called the IRS this morning and they told me it's been in the error department for 18 days but "no action needed on my part." It's so frustrating not knowing what's actually wrong or how much longer this will take. Reading everyone's experiences here is actually really reassuring though. It sounds like this is more common than I thought and most people eventually get their refunds without having to do anything. I'm trying to stay patient but it's hard when you're counting on that money. Thanks for sharing your situation - it helps to know I'm not alone in this!

I'm dealing with this exact scenario right now too! Filed exactly 21 days ago and got the delayed message this morning. Just got off the phone with the IRS and they confirmed my return has been sitting in the error department for 14 days with "no action required from me." What's really frustrating is how the WMR tool makes it sound like something is seriously wrong when apparently this is just normal processing delays. The agent I spoke with said they're seeing much higher volumes this year and the error department is significantly backlogged. @b8d349150bb9 Since you're caring for your mom and really need this money, you might want to check your account transcript online at irs.gov - sometimes it updates with processing codes before WMR shows any changes. I've been checking mine daily and it hasn't updated yet, but at least it gives me something to monitor besides that generic delayed message. Hoping we all get some movement on our returns soon. This waiting game is really stressful when you're depending on that refund!

Had something similar happen to me. The first thing you need to do is get a copy of your Wage and Income Transcript and your Account Transcript from the IRS. These will show what's been reported under your SSN and what returns have been filed. You can request these online at irs.gov/transcripts. Once you see what's actually been filed, you'll have a better idea of what you're dealing with. If what was filed is incorrect, you may need to file Form 14157 (Complaint: Tax Return Preparer) AND possibly Form 14157-A (Tax Return Preparer Fraud or Misconduct Affidavit).

This is absolutely unacceptable professional conduct. As someone who's dealt with IRS issues before, I can tell you that what your EA did - filing your return without your review or signature - is a serious violation that could have major consequences for you. Here's what I'd recommend doing immediately: 1. **Get your transcripts ASAP** - Request your Wage & Income Transcript and Account Transcript from the IRS online. This will show exactly what was filed under your SSN and when. 2. **Document everything** - Keep records of all communications with this EA, your original agreement, and the fact that you never signed Form 8879 for e-filing authorization. 3. **File complaints** - Report them to both the IRS Office of Professional Responsibility AND the National Association of Enrolled Agents. This behavior needs to be on record. 4. **Consider legal action** - Filing tax returns without authorization could potentially be fraud. You might want to consult with a tax attorney, especially since you paid $1,250 for services that weren't properly rendered. The silver lining is that with years of withholding from your paychecks, you may actually be due refunds rather than owing money. Don't let this bad experience discourage you from getting your tax situation resolved properly - just make sure you work with a reputable professional this time who will actually communicate with you and follow proper procedures. You deserve better than this, and there are good tax professionals out there who will treat your situation with the care and transparency it deserves.

This thread has been incredibly helpful! I'm in a similar situation with my freelance graphic design business - made about $38k last year and trying to decide on next steps. One thing I'm curious about that I haven't seen mentioned: what about health insurance considerations? Right now I'm on my spouse's employer plan, but if I eventually go full-time with my business, would there be any differences in how health insurance premiums are treated between LLC vs S Corp structures? Also, for those who've made the switch from sole proprietor - how long did the LLC formation process actually take? I'm in Texas and wondering if I should get started on that paperwork now or if it's something I can knock out quickly when I'm ready to pull the trigger. Thanks again everyone for sharing such detailed real-world experiences. This is exactly the kind of practical guidance I needed to move forward with confidence!

This has been such a valuable discussion! I'm actually the original poster (Zoe) and wanted to thank everyone for the incredibly detailed responses. Based on all the advice here, I'm convinced that starting with an LLC makes the most sense for my situation. The liability protection alone seems worth it at my current income level, and I love that I can always elect S Corp taxation later when my business grows beyond that $60-75k threshold where the tax savings really start to outweigh the additional complexity and costs. A few follow-up questions based on what I've learned: 1. Should I go ahead and get an EIN for the LLC even if I'm not planning to have employees initially? 2. For the operating agreement that was mentioned - is this something I can draft myself using online templates, or should I invest in having an attorney prepare it? 3. Since I'm in Illinois, should I be concerned about that 1.5% replacement tax on S Corp income when I eventually consider that election? I'm planning to move forward with LLC formation in the next couple weeks. This thread has given me so much more confidence in the decision and a clear path forward. Thanks to everyone who shared their real experiences - it's exactly what I needed to hear!