I completely understand your anxiety about this - the "jeopardy" language is definitely designed to get your attention! Here's what I'd recommend based on your situation: **Don't wait** - even though you're only waiting for one W2, that lien/levy notice means the IRS is ready to take action. A few key points: 1. **Call the IRS immediately** at the number on your notice. Explain you're waiting for a missing W2 and plan to file soon. They can often put a temporary hold (60-90 days) on collection actions. 2. **Request your wage transcript** from IRS.gov while you wait - this shows all reported W2 info and might have enough detail to file without the physical W2. 3. **Set up a minimal payment plan** if you can't reach them by phone. Even $25/month stops collection and shows good faith. Online setup is only $31 vs $107 by phone. The key thing is **communication** - the IRS doesn't know you plan to pay with your refund. From their perspective, you're just ignoring a debt. Once you make contact and explain your situation, they're usually reasonable about working with you. Don't risk a lien on your credit report over $650 - it's not worth the long-term damage for a relatively small amount. Take action today!

I had almost this exact same situation last year - owed about $700 and got that scary "jeopardy" notice while waiting for a delayed 1099 from a freelance gig. The language in those notices is definitely designed to get you moving fast! Here's what worked for me: I called the IRS number on the notice (took about 2 hours on hold, but I got through). The agent was actually really understanding when I explained I was just waiting for tax documents. She put a 90-day collection hold on my account, which gave me plenty of time to get everything sorted out. The key thing they told me is that once you receive that "lien/levy warning," you're basically at the final stage before they take action. They don't know you're planning to use your refund to pay it off - from their system, it just looks like you're ignoring the debt. Don't stress too much about the $650 amount, but definitely don't ignore the timeline. Even setting up a $25/month payment plan online would stop the collection process immediately if you can't get through by phone. You can always pay it off in full once you file and get your refund. The worst thing you can do is nothing - I've seen people end up with liens over tiny amounts just because they thought it wasn't worth dealing with. Take care of it this week!

I went through this exact same process about 6 months ago and can confirm what others have said - the sequence is crucial. I made the mistake of overthinking it initially and got stuck in analysis paralysis. Here's what I learned from my experience: 1. The IRS EIN application system is designed around legal entity types, not tax elections. So when you see "LLC" vs "S Corporation" options, they're asking about your legal structure, not your tax treatment. 2. Apply for your EIN using "Limited Liability Company" and your full legal name including "LLC". Don't try to work around the system by omitting "LLC" or using a DBA - this could create complications later. 3. The online EIN application really does give you the number immediately in most cases. I was surprised by how fast it was. 4. File Form 2553 as soon as you get your EIN. Don't wait - the 2 month 15 day deadline is firm, and while there's late election relief available, it's better to just file on time. One thing I wish I'd known: make sure your LLC Operating Agreement doesn't have any provisions that would disqualify you from S Corp treatment (like disproportionate distributions or more than 100 members). It's worth reviewing this before you file the election. The whole process took me less than a week once I understood the proper sequence. Good luck with your application!

I just went through this exact process last month and wanted to share what worked for me since I see a lot of great advice here but also some confusion in the comments. The key insight that finally clicked for me: the EIN application asks about your LEGAL entity structure, while Form 2553 is about your TAX election. These are completely separate things, which is why the IRS website seems confusing when you're trying to do both at once. Here's exactly what I did: 1. Applied online for EIN selecting "Limited Liability Company" - used our full legal name including "LLC" 2. Got the EIN instantly (literally took 10 minutes total) 3. Downloaded Form 2553 from IRS website 4. Had both LLC members sign it 5. Mailed it certified mail the next day One thing I'll add to what others have said: make sure you understand the "reasonable compensation" requirements once your S Corp election is effective. As an S Corp, you'll need to pay yourself a reasonable salary (subject to payroll taxes) before taking distributions. This is something to budget for since it affects your cash flow. The whole thing was much simpler than I expected once I stopped overthinking it. The IRS systems actually work pretty well when you follow the proper sequence!

Just wanted to add something important that hasn't been mentioned yet - make sure you keep detailed records of the original loan transaction too. Since you withdrew $50K in cash from your bank, that withdrawal should be documented on your bank statements. This creates a clear paper trail showing the money left your account and then returned, which helps establish the legitimacy of the loan arrangement. Also, regarding the 15% interest rate you charged - that's actually quite reasonable and well above the current Applicable Federal Rates (AFR), so you shouldn't have any issues with the IRS questioning whether this was a legitimate loan versus a disguised gift. The AFR for short-term loans is currently much lower, so your 15% rate clearly shows this was a commercial-style transaction. One more thing to consider: if you plan to make similar loans in the future, you might want to consider having your friend write you a check for the interest portion instead of paying in cash. This creates better documentation and avoids the complications others mentioned about carrying large amounts of cash.

I've been through a similar situation with personal loans to family members, and I learned the hard way that documentation is everything. Here's what I wish I had known from the start: First, yes, you absolutely need to report that $7.5K as interest income on your tax return. Even though it's cash sitting in your safe, it's still taxable income the moment your friend paid it to you. The IRS doesn't care about the physical form - income is income. Second, while your loan agreement is a good start, I'd strongly recommend creating a supplemental memo now documenting the complete transaction timeline. Include the withdrawal date from your bank, the loan disbursement date, the repayment date, and amounts. Even though this is after-the-fact documentation, it shows you're treating this as a legitimate business transaction. Third, consider depositing that $7.5K interest into your bank account rather than keeping it as cash. This creates a clear audit trail and removes any potential complications from having large amounts of undocumented cash. Plus, if you ever get audited, having bank records showing the interest income makes everything much cleaner. Finally, make sure your friend understands this was a legitimate loan with interest, not a gift. If the IRS ever questions either of you about it, you both need to tell the same story about this being an arm's length transaction.

I've been with BCU for about 18 months now and can add to what everyone's saying! My experience has been really consistent with the 1-2 day early timeline. Last year my DDD was 2/24 and I got my deposit on 2/22 at around 2:15 AM during their overnight batch processing. This year I'm waiting on a 2/27 DDD, so I'm in the same anxious boat as many of you! 😅 What I've found helpful is setting up account alerts through their mobile app - you'll get a notification as soon as any deposit posts, which saves you from constantly checking. Also, for anyone new to BCU, their customer service is fantastic if you have any concerns about the timing. The automated system Omar mentioned is definitely worth calling, but their live agents are also really helpful and knowledgeable about deposit schedules. Based on my experience and what everyone else is sharing, I'd be really surprised if people with 2/26 DDDs don't see their deposits by Thursday evening or Friday morning. The waiting is always nerve-wracking but BCU has been super reliable for me! Keep us all posted when yours hit! 🤞

I've been with BCU for almost 2 years now and wanted to jump in with my experience! They've been really consistent with early deposits - usually 1-2 days ahead of the DDD like everyone else is mentioning. My DDD last year was 2/25 and I got my deposit on 2/23 around midnight during their overnight processing. This year my DDD is 2/28 so I'm also in the waiting game with everyone! 😅 One thing I've noticed is that BCU's mobile app notifications are super reliable - I always get pinged the moment a deposit hits, even at 2 AM. For those of you with 2/26 DDDs, based on my experience I'd expect to see something by Thursday night or Friday morning. The automated phone system tip that Omar shared is gold - I use it all the time to check pending deposits without having to log into anything. BCU has never let me down with refunds, so I'm confident you'll all see yours soon! This community is awesome for sharing real experiences instead of just speculation. I'll definitely update when mine posts! 🤞

I've been successfully using Priority Mail with tracking for my tax returns for the past 3 years and it's worked flawlessly every time! As someone who was initially hesitant to move away from Certified Mail, I can confirm that Priority Mail provides everything the IRS needs for proof of timely filing. The tracking is incredibly comprehensive - you can see when USPS accepts your package, follow it through every processing facility, and get the exact delivery timestamp at the IRS center. What really convinced me was that Priority Mail typically delivers in 1-2 days versus 5-7 days for Certified Mail, and the cost is nearly identical. I've had to reference my filing proof twice over the years (once for an audit, once for a processing question), and both times the IRS accepted my Priority Mail tracking documentation without any hesitation. The key is keeping good records - I always take photos of my return before mailing, save the receipt, and screenshot the complete tracking history once delivered. One practical tip: make sure you're using the correct IRS mailing address for your state and return type. You can find this on the IRS website. With Priority Mail's speed, using the right address ensures your return gets processed as quickly as possible. Priority Mail with tracking absolutely meets IRS requirements and gives you better service than Certified Mail. You're making a smart choice!

As someone who was in your exact same situation last year, I can definitely confirm that Priority Mail with tracking is completely acceptable! I was nervous about not using Certified Mail since that's what I'd always heard was the "official" way to send tax documents, but after doing research and talking to a tax professional, I learned that the IRS just requires proof of timely mailing - they don't specify which mail service you have to use. I ended up going with Priority Mail and had a great experience. It arrived at the IRS processing center in just 2 days, the tracking was incredibly detailed (showing every step from pickup to delivery), and I got confirmation with an exact timestamp of when it was delivered. The cost was about the same as Certified Mail but with much faster service. The key is just keeping good records - I saved screenshots of the complete tracking history once it showed delivered and kept my receipt with my tax documents. When I called the IRS later about an unrelated question, they were able to easily look up my return using the Priority Mail tracking number. Priority Mail with tracking definitely gives you all the proof you need while being faster and more convenient than Certified Mail. You're making a smart choice!