I went through a very similar situation about 18 months ago and want to share what I learned! I had gotten an EIN in 2020 for a business venture that completely fell apart due to the pandemic. When I finally decided to start a new business in 2023, I was terrified that I'd somehow created problems by having that unused EIN sitting there. After consulting with a tax attorney, I discovered that unused EINs are extremely common - especially post-COVID when so many business plans got derailed. The IRS doesn't penalize you for dormant EINs with no activity, and there's no requirement to "close" or "cancel" them. Since you never actually filed formation documents with Colorado, you're in an even simpler position than I was. You essentially just have an unused federal tax ID number, not an actual business entity to worry about. I chose to get a fresh EIN for my new LLC and it was absolutely the right decision. The process was quick and straightforward online, and having everything start with matching dates made all my subsequent business setup (banking, insurance, licensing) much smoother. No one ever questioned the timeline because everything was consistent from day one. Your old EIN will just remain dormant indefinitely, which is completely normal and legal. Don't let this situation delay your Tennessee LLC launch any longer - you haven't done anything wrong and you're free to move forward with confidence!

I've been following this thread and wanted to add my perspective as someone who dealt with a very similar EIN situation recently. The consensus here is absolutely right - you're not in any trouble and this is much more common than you think! I had an unused EIN from a business idea that never launched in 2021, and when I finally started my actual business in 2024, I was initially panicking just like you are now. After speaking with both a CPA and calling the IRS directly, I learned that dormant EINs with no business activity are completely normal and require no action on your part. Since you never filed formation documents in Colorado, you're in the simplest possible position - just an unused federal tax ID with no actual business entity attached. Getting a fresh EIN for your Tennessee LLC is definitely the cleanest approach. It took me about 10 minutes online, no questions about previous EINs, and I had my new number immediately. The peace of mind factor alone is worth it. All your business documentation will have consistent dates, banks won't ask questions about timeline gaps, and you'll start with a completely clean slate. Your old EIN will just sit dormant forever, which is perfectly legal and happens thousands of times. Stop stressing about this and focus on the exciting part - finally launching your business in Tennessee! You've got this!

I'm dealing with this exact same frustrating situation right now! Got my CP01H letter last month, completed the ID.me verification online (which took forever), and then got ANOTHER letter saying I need to call. It's so confusing that they don't explain these are two separate processes. Based on all the responses here, it sounds like I definitely need to make that call. Really appreciate everyone sharing their experiences - at least now I know what to expect. Going to try calling early tomorrow morning with my tax returns ready. Fingers crossed I can get through without waiting hours on hold!

I just went through this exact nightmare myself! The IRS verification system is absolutely broken. I did the ID.me verification thinking I was all set, then got the CP01H letter demanding a phone call. Spent 3 days trying to get through before finally connecting. The agent explained that the online verification only confirms your identity for accessing IRS online services, while the phone verification is specifically for processing your tax return - they're completely separate systems that don't talk to each other at all. It's mind-boggling that they don't explain this clearly in their letters. After the phone verification, my refund was processed in about 10 days. Definitely call as early as possible (7am when they open) and have your last 2 years of returns ready. They'll ask very specific questions about previous filing amounts and dates. Hang in there - once you get through the phone verification, it moves pretty fast!

Congratulations! That sudden change to $0.00 is exactly what you want to see. I went through the same thing last month - my balance showed amounts owed one day, then suddenly dropped to zero the next morning. Got my refund deposited exactly 5 days later. The fact that both 2023 and 2024 show $0.00 means the IRS has processed everything and cleared your account. This usually happens in the final stages before they release your refund. Pro tip: Download the IRS2Go app if you haven't already - it'll give you push notifications when your refund status updates. Also worth checking your transcript tomorrow to see if any new transaction codes appeared overnight. You're definitely in the final stretch now!

This is such great news! The sudden change to $0.00 across both tax years is definitely a positive indicator that your return has been processed and approved. I experienced something very similar last year - my balance showed amounts owed one day, then completely zeroed out the next morning. From what I've seen in this community, once your account balance drops to zero like this, you're typically looking at 3-7 business days before the refund hits your account. The IRS system updates are usually pretty accurate when they show these kinds of dramatic changes. Make sure to check your account transcript in the next day or two for transaction code 846 - that's the golden ticket that means your refund has been officially scheduled for deposit. You can access it through the same IRS account portal where you're seeing the $0.00 balance. The timing of this happening within just a few hours is actually really encouraging. It suggests the IRS systems are actively processing your case rather than it just sitting in a queue somewhere. Hang in there - you're almost at the finish line!

Thanks for all the helpful responses everyone! As someone who just started freelancing this year, this thread has been incredibly valuable. I was definitely overthinking the 1040-ES requirement - it sounds like I can just use the IRS Direct Pay system without worrying about submitting any forms. One follow-up question: If I'm using the safe harbor method (paying 100% of last year's tax liability), do I still need to use the 1040-ES worksheet to calculate my payments, or can I just take last year's total tax and divide by 4? My tax situation is pretty straightforward - just freelance income with standard business expenses. Also, does anyone know if there's a minimum income threshold where estimated payments become required? I've seen conflicting info about whether you need to pay if you'll owe less than $1,000.

Great question! I went through this same confusion when I started freelancing. The 1040-ES form is just a worksheet - you don't actually "file" it with the IRS. It's designed to help you calculate how much to pay each quarter. Here's what I learned: You can absolutely make your quarterly payments online without any paperwork. I use IRS Direct Pay (irs.gov/payments/direct-pay) - it's free, secure, and you just need your SSN and bank account info. When you make the payment, you'll select "Form 1040ES" as the form type and choose which quarter you're paying for. The key is keeping good records. Save your confirmation numbers and consider setting up an online account with the IRS so you can track your payment history. I keep a simple note in my phone with the confirmation numbers and dates - that's all the "filing" you really need for quarterly payments. Don't stress about not having a printer or avoiding tax prep services for this. The online payment system is actually much more convenient than mailing vouchers anyway!

Does anyone know if its possible to just mail a check for quarterly payments? My internet is spotty and I dont really trust online payments for something this important.

I've been using FreeTaxUSA for my quarterly payments for about 2 years now and wanted to share my experience. The software does a great job calculating your estimated payments, but like others mentioned, you need to handle the actual payment process separately. I started with Direct Pay but switched to EFTPS after missing a payment deadline (cost me about $65 in penalties). The EFTPS registration process is a bit old-school - you do have to wait for them to mail you a PIN - but once you're set up, it's incredibly convenient to schedule all four payments at once. One tip that might help: when FreeTaxUSA calculates your quarterly amounts, print out that summary page and keep it with your tax records. I reference it throughout the year when I'm tracking my business income to make sure I'm still on track. Also, don't forget that if your income changes significantly during the year, you might need to adjust your remaining quarterly payments. EFTPS makes it easy to modify future scheduled payments if needed.