I'm really sorry you're going through this - overpayment situations are such a nightmare to deal with, especially when you're essentially being asked to pay back money you never actually saw! Unfortunately, yes, you do legally owe the university the full gross amount including the tax withholdings. I know it seems completely unfair, but from their perspective (and the IRS's), the entire overpayment transaction needs to be reversed since it was never legitimately your income to begin with. The good news is you're not permanently losing that withheld tax money. When you file your 2024 return, you can recover those taxes through the "claim of right" provisions - either as a deduction on Schedule A or as a credit, whichever gives you the better tax benefit. Here's what I'd focus on right now: **Get rock-solid documentation before paying anything** - You need written confirmation of the exact overpayment amount, a detailed breakdown of all withholdings (federal, state, FICA), and most importantly, language confirming this is a "wage overpayment correction." This specific wording is crucial for your tax filing. **Don't accept their initial timeline as non-negotiable** - This was THEIR payroll error that went unnoticed for almost a year. Most universities have appeal processes or can offer payment plans when you explain the financial burden their mistake created. Taking 60-90 days to handle this properly is completely reasonable. **Consider strategic timing** - Since you're crossing tax years, you might want to consult briefly with a tax professional about whether delaying repayment until January 2025 could simplify everything by keeping it all in the same tax year. Remember, you have more leverage than you think because this whole mess exists due to their administrative failure, not anything you did wrong. Don't let them pressure you into rushed terms that aren't optimal for your situation!

I've been through a very similar situation with my adjunct position, and I completely understand how frustrating and confusing this whole mess is! The university is technically correct that you owe the full gross amount, but that doesn't mean you should just accept their initial terms without question. Here's what I learned from my experience that might help you: **Document everything before you pay a cent** - Get written confirmation that includes the exact overpayment amount, detailed breakdown of all tax withholdings (federal, state, FICA, etc.), and crucially, language stating this is a "wage overpayment correction" or "reversal of erroneous compensation." This specific wording will be essential when you claim the tax credit later. **You have more negotiating power than you realize** - Don't let them rush you into immediate payment. This was THEIR payroll error that went undetected for nearly a year! I successfully appealed for a 120-day payment plan by explaining the financial hardship their mistake created. Most universities have formal procedures for these situations and are more flexible than their initial demand letters suggest. **The tax portion isn't lost forever** - While you do have to repay the gross amount now, you'll recover the withheld taxes when you file your 2024 return through the "claim of right" provisions. It's annoying to float that money, but you're not permanently losing it. **Consider timing strategically** - Since this crosses tax years, you might benefit from consulting a tax professional about whether delaying repayment until January 2025 could simplify everything by keeping it in the same tax year. Remember, taking a few weeks to handle this properly is completely reasonable given that this entire situation exists because of their administrative failure, not yours. Don't be afraid to advocate for terms that don't create such a financial burden for you due to their mistake!

As a newcomer to this community, I wanted to share my experience since I'm currently going through this exact process! I completed my identity verification on March 5th, so I'm now at about week 2.5 of the wait. What I find really helpful about this breakdown is understanding that there are actually distinct phases happening behind the scenes rather than just a mysterious black box of waiting. The IRS agent who handled my verification just said "up to 9 weeks" without any explanation of what actually occurs during that time. My verification was for what they called "routine identity confirmation" - no specific issues mentioned with my return, just standard security protocols. Based on everyone's shared experiences here, I'm cautiously optimistic that puts me in the 4-6 week range rather than the full 9 weeks. One thing I've noticed from reading through all these real experiences is how unreliable the official tracking tools seem to be post-verification. My WMR still shows the same generic "being processed" message it's shown since I filed, and my transcript hasn't budged. It's actually somewhat reassuring to learn that this is completely normal and that refunds often just appear without any advance warning from these systems. I'm definitely going to follow the advice about setting up daily bank account alerts after week 4 instead of obsessively refreshing WMR and transcripts. Thanks to everyone for sharing such detailed and helpful real-world timelines - this thread is exactly what anxious people like me need during this stressful waiting period!

As a newcomer to this community, thank you so much for this incredibly detailed and helpful breakdown! I just completed my identity verification on March 25th and was feeling really anxious about the "up to 9 weeks" timeline they gave me. What I find most reassuring from reading through everyone's experiences is how much more realistic the actual timelines are compared to the worst-case scenario the IRS quotes. Seeing that most people get their refunds in the 4-6 week range instead of the full 9 weeks gives me so much hope and helps me set proper expectations. My verification was for what they called "routine identity verification" - the agent said it was standard procedure with no specific issues flagged on my return. Based on all the experiences shared here, I'm optimistic that puts me in the faster processing category. I'm definitely going to follow the advice about setting up bank account alerts after week 4 instead of obsessively checking WMR and transcripts. It's amazing how many people mentioned their refunds just appeared without any warning from the tracking systems - that's both reassuring and slightly nerve-wracking at the same time! One thing I'm curious about - has anyone noticed if the IRS customer service representatives give different timeline estimates depending on when you call them during the process? I'm wondering if it's worth calling for updates after week 4 or if it's better to just wait it out based on the experiences shared here. Thanks for creating this thread and to everyone sharing their real experiences - this kind of practical, real-world information is exactly what people going through this process need to manage the stress and uncertainty!

Just a quick tip - if you've missed the 1065 deadline like I did, filing as soon as possible is critical to minimize penalties. They calculate that $210 per partner per month even if you're only one day late in the month. And for Schedule B Question 4 specifically, don't overthink it - if you're late, you check "No" and move on. But be prepared for the extra reporting requirements that others have mentioned.

Great to see you got it sorted out, Fatima! Your experience is a perfect example of why partnership tax returns can be so tricky for first-timers. That cascade effect you mentioned - where checking "No" on Question 4 triggers additional reporting requirements throughout the return - catches a lot of people off guard. For anyone else reading this thread who might be in a similar situation, here's a key takeaway: when you're dealing with Form 1065, missing any one of the conditions in Schedule B Question 4 (including the timely filing requirement) means you lose access to simplified reporting. This isn't just about one checkbox - it affects multiple schedules and can significantly increase the complexity of your return. The silver lining is that once you've been through this process once, next year's filing will feel much more manageable. You'll know what to expect and can plan accordingly. Setting those calendar reminders is definitely smart - I'd suggest setting them for at least a month before the deadline to give yourself plenty of time to gather documents and work through any issues.

Has anyone considered prepaid expenses rules? I think there's an exception if you're prepaying for something more than a year in advance. Just wanted to throw that out there in case someone's booking really far ahead.

This is such a helpful thread! I'm in a similar situation as the original poster - I'm a consultant who travels frequently for client meetings and always struggle with the timing of deductions. Based on all the advice here, it sounds like the key is to focus on when you actually paid, not when you used the service. One thing I'd add is to keep really good records of your payment dates, especially if you're using different payment methods (credit cards, bank transfers, etc.). I learned this the hard way when I got audited a few years ago and had to reconstruct my travel expense timeline. The IRS was very focused on the actual payment dates, not the travel dates. For anyone else dealing with this, I'd recommend setting up a simple spreadsheet or using one of the tools mentioned here to track payment dates alongside your travel dates. It makes tax time so much less stressful when you have everything organized properly!

As someone new to this community who's been dealing with international tax compliance issues, I wanted to thank everyone for this incredibly thorough and helpful discussion! Reading through all these experiences has been like getting a masterclass in foreign corporation dissolution requirements. What really stands out to me is how consistent the core advice has been across different countries and situations: - Form 5471 is absolutely required for the final year, even for dormant entities - The Rev Proc 97-20 simplified procedures can still be used, just add Schedule O for dissolution reporting - Shop around for quotes and avoid unnecessary "streamlined" procedures for truly dormant entities - Target the $275-350 range rather than $750+ comprehensive packages I'm particularly impressed by how many community members took the time to share detailed follow-ups about their successful outcomes. Paolo's update about finding a $275 solution instead of paying $750 really demonstrates the value of getting multiple opinions and pushing back on expensive procedures that may not be necessary. For anyone else reading this thread in the future, the key seems to be finding preparers who specifically understand Rev Proc 97-20 and can clearly explain why they're recommending their approach. The specialists who immediately grasped the dormant entity nuances were consistently more knowledgeable and cost-effective than those defaulting to expensive comprehensive solutions. This is exactly the kind of real-world guidance that makes online communities so valuable for navigating complex regulatory requirements. Thanks to everyone who shared their experiences!

As a newcomer to this community dealing with a similar situation, I wanted to add my experience with a dormant Netherlands BV that I dissolved last year. Your original accountant was definitely wrong - Form 5471 is absolutely required for the final year even for dormant corporations. However, like many others have mentioned, I'd be very cautious about that $750 "streamlined" fee. I went through this exact process and found that most preparers who immediately jumped to expensive streamlined procedures didn't fully understand the nuances of dormant entity dissolutions. The simplified Rev Proc 97-20 procedures work perfectly fine for the final year - you just need to add Schedule O to report the dissolution details. When I shopped around (after reading similar advice in other forums), I found quotes ranging from $280-380 for a straightforward amendment with Form 5471 simplified filing plus Schedule O. The preparer I chose had specific experience with Rev Proc 97-20 and immediately understood that streamlined procedures weren't necessary for a truly dormant entity with no unreported income. The key documents you'll need are certified English translations of your Thai dissolution certificate and any final tax clearances. The whole process was much more straightforward than I initially feared. Based on everyone's experiences here, definitely get at least 2-3 additional quotes before paying $750. You should be able to resolve this for well under $400 total, including translation costs.