I think everyone's missing something here. While buying stocks/ETFs with company money doesn't create a deductible expense, there could be strategic reasons to do it anyway. My S-corp holds some investments as part of our cash management strategy. The key is understanding it won't reduce your current tax liability. Also, talk to your accountant about the Qualified Business Income deduction (Section 199A) - if your business qualifies, it can give you a deduction up to 20% of your qualified business income. Much more valuable than trying to hide money in investments.

This is a really common question for S-corp owners! As others have mentioned, investing company cash in stocks/ETFs won't reduce your current tax liability since it's just converting one asset to another, not creating a deductible expense. However, there are some legitimate year-end tax strategies worth considering with that $75k: 1. **Accelerate business expenses**: Purchase equipment, software, or supplies you'll need in 2026 before year-end 2. **Maximize retirement contributions**: Solo 401k or SEP-IRA contributions can be substantial for S-corp owners 3. **Consider bonus depreciation**: Qualifying business assets may be eligible for immediate depreciation 4. **Prepay deductible expenses**: Insurance, rent, or professional services for early 2026 The key is making sure any purchases are ordinary and necessary business expenses, not just trying to park money somewhere. The IRS looks at the substance of transactions, so everything needs to have a legitimate business purpose. I'd strongly recommend consulting with a tax professional who can review your specific situation - the savings from proper year-end planning often far exceed the consultation cost.

As someone who's been through this exact situation, I'd strongly recommend getting some concrete numbers before making that truck purchase. With your $67k in 1099 income and that $16k annual tax hit, you're definitely in a position where smart vehicle deductions could make a real difference. Here's what I'd suggest: before you buy, calculate both scenarios with actual numbers. For the depreciation route on a $55k truck (assuming 80% business use), you're looking at potentially deducting around $44k in year one with Section 179. At your tax bracket, that could save you roughly $10-12k in taxes the first year alone. But here's the catch - you mentioned you're conservative with deductions and that's smart. Make sure you can genuinely justify that 80% business use percentage, because the IRS will want to see detailed records. If your actual business use is more like 60%, then your deduction drops accordingly. Also consider the cash flow impact. That truck payment might be $800-1000/month, but if you're saving $10k+ in taxes year one, it changes the math significantly. Just remember those big first-year savings mean smaller deductions in future years. Have you considered leasing instead? Sometimes the deduction structure works out better for contractors, especially if you like updating equipment regularly.

The 70% business use sounds much more realistic and defensible than 80%, especially if you're planning weekend personal use. The IRS loves to audit vehicle deductions, so being conservative here is smart. For leasing vs buying: With a lease, you deduct the business percentage of your monthly lease payments instead of taking depreciation. So if you lease for $600/month and use it 70% for business, you'd deduct $420/month ($5,040/year). The advantage is consistent annual deductions and no depreciation recapture issues if you switch vehicles. The downside is you don't own anything at the end, and there can be mileage restrictions that might not work for your equipment hauling needs. For your situation with lumpy 1099 income, the big first-year depreciation write-off might be more valuable since it hits that $16k tax bill hard right away. Just make sure you're prepared for smaller deductions in years 2-5. One more thing - since you're hauling heavy equipment, make sure whatever truck you get has the payload capacity you actually need. Don't let the tax tail wag the business dog. A truck that can't properly handle your work loads isn't worth any tax savings.

I went through something very similar last year - filed in February and didn't get my refund until July! It turned out the IRS had flagged my return for manual review because I claimed both the Child Tax Credit and education credits, which apparently triggers additional scrutiny. A few things that helped me get answers: 1. **Check your tax transcript** - Giovanni's advice about this is spot on. The codes will tell you way more than the "Where's My Refund" tool ever will. 2. **Don't wait for letters** - In my experience, IRS notices can take weeks to arrive or sometimes get lost in the mail. If your transcript shows a 971 code, call them directly rather than waiting. 3. **Document everything** - Keep records of every call attempt, reference numbers, and what representatives tell you. This becomes important if you need to escalate. 4. **Consider the Taxpayer Advocate Service** - If you've been waiting over 120 days (which you have), they can intervene. They're actually pretty effective at cutting through the bureaucracy. The frustrating reality is that certain combinations of credits and deductions just automatically trigger delays, even when everything is perfectly correct. It's not fair, but knowing this helps you prepare for next year. Hang in there - you will get your money!

I'm dealing with a similar situation and wanted to share what I've learned after months of research and calls. The IRS doesn't publish an official list of which credits trigger delays, but based on my experience and talking to multiple agents, here are the common culprits: **High-risk combinations that often cause delays:** - Child Tax Credit + Education Credits (AOTC/Lifetime Learning) - Earned Income Tax Credit (EITC) + Additional Child Tax Credit - Recovery Rebate Credit claims (missing stimulus payments) - First-time homebuyer credits - Premium Tax Credits with marketplace insurance **Single items that frequently trigger review:** - Large charitable deductions (especially non-cash) - Home office deductions for self-employed - Casualty loss claims - Prior year minimum tax credits The agents won't always tell you upfront what triggered the review - I had to specifically ask "What caused my return to be flagged?" and even then, some representatives were vague about it. One agent finally explained that their system uses algorithms to score returns for fraud risk, and certain combinations just automatically get higher scores. For future years, if you know you'll be claiming these credits, file as early as possible and consider using direct deposit to speed up the process once it's approved. The delays are frustrating but usually resolve eventually - just takes patience and persistence!

This whole thread has been incredibly enlightening! As someone who's been filing taxes for over a decade, I honestly had no idea that "Taxpayer ID" was just the IRS's umbrella term for all identification numbers including SSNs. I received a similar letter about two weeks ago and immediately started wondering if there was some kind of mix-up with my account. What bothers me most is that this seems like such an easy communication issue to fix. A simple asterisk with "*For individual filers, Taxpayer ID refers to your Social Security Number" would eliminate so much confusion. Instead, we're all left to figure it out ourselves or spend hours on hold trying to reach someone at the IRS. @Diego Flores and @Faith Kingston make excellent points about the communication gap. It's 2025 - shouldn't government agencies be more proactive about explaining these kinds of changes? Especially when it affects millions of people and creates unnecessary anxiety about something as sensitive as our tax identity. Thanks to everyone who shared their experiences and explanations. This is exactly why I value this community - you get real answers from real people who've dealt with the same issues!

As someone who just joined this community after receiving my first confusing IRS letter, I can't thank everyone enough for this detailed discussion! I got a notice three days ago that used "Taxpayer ID" terminology and immediately thought something was wrong with my account or that it might be a scam. Reading through all these responses has been incredibly reassuring. It's clear that this is just the IRS's way of using umbrella terminology, but wow - what a communication failure on their part! The fact that so many experienced taxpayers in this thread had the same initial panic reaction really highlights how poorly this change was implemented. I'm particularly frustrated that there's no proactive explanation from the IRS about this terminology shift. For something that affects millions of people and deals with such sensitive information as our tax identity, you'd think they would have included some kind of explanatory note or FAQ when they started making this change. The suggestions about adding a simple footnote explaining that "Taxpayer ID" includes SSNs for individual filers make so much sense. It would save taxpayers from unnecessary worry and probably reduce the volume of calls to their already overwhelmed help lines. Thanks again to everyone who shared their knowledge and experiences - this community is invaluable for navigating these bureaucratic mysteries that the government doesn't bother to explain clearly!

Has anyone used QuickBooks for tracking contractor sales tax? I'm a plumber and tried setting it up myself but I'm completely lost on how to handle materials vs labor for tax purposes.

As someone who's been in the contracting business for 8 years, I can confirm that understanding sales tax is absolutely crucial before you start your business. What your friend's contractor mentioned about resale certificates is legitimate, but there are strict rules about when and how you can use them. In Texas, if you're doing home repairs (which sounds like what you're planning), you'll likely fall under "retail contractor" rules in most cases. This means you can purchase materials tax-free with a resale certificate, but then you MUST collect sales tax from your customers on those materials. The labor portion is also taxable in Texas for repair work. The biggest mistake I see new contractors make is thinking they can just avoid sales tax altogether - that's not how it works. You're essentially acting as a middleman collecting tax for the state. Keep detailed records of everything because the Texas Comptroller's office does audit contractors, and they're pretty thorough. My suggestion: get your sales tax permit from the Texas Comptroller's office first, then talk to a local CPA who understands contractor taxes before you take on your first job. The setup cost is way less than the penalties you'd face for doing it wrong.