Self-Employed with EIN & Schedule C - Anyone Still Waiting for 846 Code?

You're encountering a common processing delay pattern for Schedule C filers in the current tax year. The 0505 cycle code indicates your return is processed on Thursdays, but self-employed returns with EINs are facing extended verification periods. The IRS has implemented enhanced scrutiny protocols for business returns, particularly those with home office deductions, business expenses, or quarterly estimated payments. Current processing metrics show 38-45 day timelines versus the standard 21 days. URGENT: Check your Account transcript for TC 570 (refund hold) or TC 971 (notice issued) codes that would indicate further action required.

Did you claim any unusual deductions this year compared to your previous returns? Sometimes even small changes can trigger additional review. I'm in the same boat - filed Schedule C with my trusty EIN on Feb 8th and still waiting for that magical 846 code to appear. *cries in self-employment taxes*

I was in this exact situation last year. Filed my Schedule C on January 24, 2023, and didn't see my 846 code until March 15th. This year I was determined not to wait that long, so when I saw my 0505 cycle code on February 28th with no movement by March 14th, I used Claimyr (https://youtu.be/_kiP6q8DX5c) to get through to an agent. Got connected in about 17 minutes instead of the 2+ hours I spent on hold last year. The agent confirmed my return was just in extended processing due to self-employment verification but nothing was wrong. Refund was issued exactly 6 days after that call. Sometimes just having an agent look at your account seems to move things along.

As someone who's been self-employed for 12 years, I've noticed a pattern with 0505 cycle codes. Here's what I've learned might help: 1. Pull your Wage & Income transcript to make sure all 1099s are showing up correctly 2. Check Account transcript for any TC 570 codes (temporary holds) 3. Look for TC 971 which might indicate they're sending a letter 4. If you have multiple Schedule C businesses, those typically take longer 5. If you claimed business losses in consecutive years, that can trigger review I know how stressful this waiting game is when you're counting on that money. Many of us self-employed folks budget our quarterly tax payments around our refunds.

Have you checked if your state return has been processed yet? Sometimes there's a correlation between state and federal processing times for self-employed filers. I've noticed with my clients that when the state processes first, the federal 846 code often appears within 7-10 days afterward.

I've worked with several clients with EINs who filed Schedule C and had the 0505 cycle code this year. According to Internal Revenue Manual 21.4.1.3(1), returns with Schedule C income above certain thresholds undergo additional verification procedures. One client who filed on February 1st just received their 846 code yesterday after 47 days in processing. Their return included home office deductions, vehicle expenses, and depreciation - yet no audit or review was conducted. It's surprising how the IRS seems to be treating routine business returns with such extended timeframes this year without any formal explanation to taxpayers!