One thing to watch out for if you're new to S-Corp health insurance reporting - make sure you understand the timing requirements. The health insurance premiums need to be paid by your S-Corp during the tax year to qualify for the deduction in that same year. I learned this the hard way when I tried to reimburse myself in January for premiums I had personally paid in December of the prior year. The IRS doesn't allow that - the S-Corp itself must make the payments directly to the insurance company or through payroll during the actual tax year you're claiming the deduction. Also, if you have employees, you'll need to make sure health insurance is available to them on the same terms, or there are specific ownership percentage rules that apply. This gets complex quickly if you have other shareholders or employees, so definitely consult a tax professional if your situation isn't straightforward single-owner S-Corp.

This is exactly the kind of confusion I went through when I first elected S-Corp status for my LLC! One thing that really helped me was creating a simple monthly checklist to stay on top of the health insurance reporting requirements. Here's what I do now: At the beginning of each year, I calculate my total expected health insurance premiums and make sure my S-Corp has enough budgeted for payroll taxes on that additional compensation. Then each month when I process payroll, I include 1/12th of the annual health insurance amount in my W-2 wages, even if the actual premium gets paid at a different time in the month. This approach keeps everything consistent and makes year-end much smoother. I also set up a separate business checking account specifically for employee benefits (even though I'm the only employee), which makes tracking these payments super clear for my bookkeeper and accountant. The key insight that took me a while to understand is that you're essentially paying yourself additional wages equal to the health insurance cost, then taking a personal deduction for those same premiums. Once you think of it that way, the whole process makes much more sense!

This is a really serious situation that your sister and her coworkers need to address immediately. Unfortunately, what happened to them is not legal - employers are absolutely required by federal law to withhold income taxes, Social Security, and Medicare taxes from employee paychecks. The fact that this happened to multiple employees when they switched to direct deposit suggests either a major payroll system error or negligence on the company's part. Either way, the company is liable for failing to meet their legal withholding obligations. Here's what they should do right now: **Immediate steps:** - Gather all paystubs and direct deposit records to document the lack of withholding - File their tax returns on time even if they can't pay - this prevents additional failure-to-file penalties - Contact the IRS to set up payment plans (they have reasonable monthly options) **Dealing with the employer:** - Approach management as a unified group - there's power in numbers here - Demand immediate correction of the withholding going forward - Ask if the company will provide financial assistance (bonuses, etc.) to help with the unexpected tax burden - Get everything in writing - no verbal promises **Penalty relief:** They should absolutely request penalty abatement from the IRS based on "reasonable cause" since this was employer error, not their fault. The IRS often waives penalties when underpayment resulted from circumstances beyond the taxpayer's control. They should also consider reporting this to the Department of Labor and filing a complaint with the IRS about the company's failure to comply with employment tax laws. The company could face significant penalties, which gives them strong incentive to help resolve this situation. Don't let the company brush this off as a minor mistake - people are facing serious financial hardship because of their failure to follow federal tax law.

This is absolutely not legal, and your sister and her coworkers are victims of serious employer negligence. Federal law requires employers to withhold income tax, Social Security, and Medicare taxes from paychecks - there are no exceptions for this, regardless of payment method. The timing around the direct deposit switch is a huge red flag. It suggests either their payroll system wasn't properly configured or someone made a massive oversight that went unnoticed for months. Either way, the company is in violation of federal employment tax laws. Your sister's group needs to take immediate action: **Document everything** - Collect all paystubs, direct deposit records, W-4 forms, and any communications about the payroll changes. This evidence will be crucial for both IRS penalty relief and potential legal action. **File taxes on time** - Even if they can't pay immediately, filing prevents additional failure-to-file penalties which are much steeper than underpayment penalties. **Coordinate their response** - Having multiple affected employees approach management together gives them much more leverage than individual complaints. **Demand accountability** - The company should immediately correct withholding going forward AND provide assistance with the unexpected tax burden they created. Some employers offer emergency bonuses or loans in these situations. **Report the violation** - File complaints with both the IRS and Department of Labor. The company faces serious penalties for employment tax violations, which creates strong incentive for them to cooperate. **Request IRS penalty relief** - With proper documentation showing this was employer error, they have a strong case for penalty abatement under "reasonable cause" provisions. This isn't just a "mistake" - it's a violation of federal tax law that's causing real financial harm to working people. The company needs to take full responsibility for fixing this mess.

I feel your frustration about the code 810 appearing without any letter - it's like they expect us to be mind readers! From what I've learned lurking in this community, that code usually means they're doing some kind of income verification review. Since you mentioned being retired, they're probably cross-checking your retirement distributions or Social Security against what you reported. I'd definitely recommend calling them sooner rather than later - don't wait for that letter that might never show up. When you call, have your transcript printed out with that 810 code highlighted so you can reference the exact dates. Ask them specifically what documents they need for the review. I know it's annoying when you just want your refund for those home repairs, but being proactive with the IRS usually gets better results than waiting around. Good luck!

I totally understand your frustration with that code 810 appearing out of nowhere! As someone who's been through similar IRS headaches, I'd strongly recommend not waiting for a letter that may never come. From what I've seen in this community, code 810 typically means they're reviewing something on your return - could be income verification, especially common with retirement income sources. My suggestion is to call the IRS taxpayer line (1-800-829-1040) first thing in the morning around 7 AM when wait times are shorter. Have your transcript printed out with the 810 code highlighted and ask them specifically what they need for the review. Don't let them give you vague answers - push for exactly what documents they want and where to send them. I know it's annoying when you're counting on that refund for your home repairs, but being proactive usually gets much faster results than playing the waiting game with the IRS. Hang in there!

Hey Emma! Just wanted to share my experience - I've been using Chime for my refunds for the past 2 years. While they don't offer actual tax advances (like fronting you money before the IRS processes), they do get your refund to you about 2 days earlier than traditional banks once the IRS releases it. Last year I got mine on a Wednesday when most of my friends with regular banks got theirs on Friday. It's not a huge difference but every bit helps! Since you filed early, you should be in good shape once processing really gets going.

I work at a local VITA site and can confirm what others have said - Chime doesn't do actual tax advances where they front you money. However, since you filed early (even though processing didn't start until Jan 27th), you're positioned well for when the IRS starts releasing refunds. Pro tip: make sure you have your AGI from last year's return handy to check "Where's My Refund" - it won't show up there until the IRS actually starts working on your return. The 2-day early deposit from Chime is legit though, I've seen clients get theirs on Thursday when traditional banks release on Saturday.

I'm currently going through this exact same situation! I noticed the 970 code appeared on my transcript about 10 days ago with absolutely no other information, and like many of you, I immediately started panicking about what it meant for my refund. Reading through all of these experiences has been incredibly reassuring - it's clear that getting just the 970 code alone is much more common than I thought, and most people seem to get resolution within 3-4 weeks. I was especially helpful to see the variety of reasons people got the code (education credits, identity verification, random reviews, etc.) because it shows that it's usually routine verification rather than a serious problem. I've been guilty of checking my transcript way too often (sometimes multiple times per day!), but based on everyone's advice here, I'm going to limit myself to checking once a week and just wait for the letter to arrive. It sounds like that's really the key - waiting for the IRS to tell you specifically what they need rather than trying to guess from the codes. Thanks to everyone who shared their timelines and outcomes - it really helps reduce the anxiety of not knowing what's happening with your refund!

I just wanted to add my experience to this thread since I went through the exact same thing about 4 months ago. The 970 code appeared on my transcript all by itself, and I was convinced something was seriously wrong with my return. After about 3 weeks of checking my transcript daily (which I don't recommend - it just increases the anxiety!), I received a letter asking me to verify some information about the Child and Dependent Care Credit I had claimed. Turns out they just wanted to confirm my daycare provider's information and the amounts I paid. I was able to respond to their request entirely online through the IRS website, and my refund was released exactly 7 days later. The whole process from when the 970 code first appeared to getting my refund took about 5 weeks total. What I learned from the experience is that the 970 code by itself really is just the beginning of their review process - it doesn't mean there's necessarily anything wrong. The specific reason for the review usually becomes clear when you get that follow-up letter. Try to be patient (easier said than done, I know!) and don't let it stress you out too much. Based on everything I've read here and my own experience, the vast majority of these situations resolve smoothly once you provide whatever information they're looking for.