I've been struggling with the exact same business code question for my content creation work! After reading through all these responses, I'm feeling much more confident about using 711510 "Independent Artists, Writers, and Performers" for my MCN partnership. What really clicked for me was the explanation that content creation is essentially digital performance - whether we're gaming, doing commentary, or creating educational content, we're performing for an audience. That makes the artist/performer classification make perfect sense. I'm definitely going to start that tax folder system someone mentioned to track expenses throughout the year. I've been stressing about this every tax season, but it sounds like as long as we're consistent with 711510 and can reasonably justify it (which we clearly can), we're good to go. Thanks everyone for sharing your experiences - this thread has been incredibly helpful for reducing my tax anxiety!

This thread has been incredibly helpful! I'm also a content creator with an MCN partnership and have been using different codes each year because I wasn't sure. Based on everyone's experiences here, I'm definitely going to stick with 711510 "Independent Artists, Writers, and Performers" going forward. The "digital performance" explanation really makes it clear why this code fits what we do. Whether we're streaming games, making tutorials, or creating entertainment content, we're essentially performing for our audience through digital platforms. I love the idea of keeping a tax folder throughout the year and documenting the rationale for using 711510. That organizational approach will definitely save me from the annual tax season panic I usually go through! One question for those who have been using this code consistently - have you ever had any issues during tax filing or with the IRS questioning your business classification? Just want to make sure there aren't any red flags I should be aware of.

I had this exact same confusion when I missed my 2022 RMD. The key thing to understand is that Line 55 on Form 5329 serves two purposes depending on whether you're requesting a waiver or not. If you're NOT requesting a waiver, you calculate and enter the 10% penalty amount ($67.50 in your case) and pay it with your return. If you ARE requesting a waiver (which you should since you've corrected the mistake), you enter $0 on Line 55, write "RC" next to it, and attach your explanation letter. You don't pay anything upfront. Your calculation is correct - the penalty would be $67.50 if you had to pay it. But since you've already taken the corrective distribution and have reasonable cause, you should request the waiver by putting $0 on Line 55. Make sure your explanation letter mentions that this was an honest oversight, you corrected it as soon as you realized the mistake, and you've put systems in place to prevent it from happening again. The IRS is generally very reasonable with first-time RMD penalty waivers when people show good faith by correcting the situation promptly. Don't stress too much about this - it's a very common mistake and the IRS processes thousands of these waiver requests successfully every year.

I've been through this exact situation and want to emphasize a few key points that might help clarify the process: First, you're absolutely correct to be confused - the Form 5329 instructions aren't very clear about the waiver process. The consensus here is right: put $0 on Line 55 with "RC" written next to it when requesting a waiver. Your calculation of the $67.50 penalty is mathematically correct (10% of the $675 shortfall), but you only pay that if the waiver gets denied, which is unlikely for a first-time missed RMD that you've already corrected. A couple of additional tips from my experience: - Make sure your explanation letter is dated and signed - Include the exact date you took the corrective distribution - If this is your first year of RMDs, mention that in the letter - the IRS is particularly understanding of first-time confusion - Keep a copy of everything you submit for your records The waiting period can be nerve-wracking, but most people I know who've gone through this process (including myself) have had their waivers approved without issue. The fact that you caught the mistake and corrected it shows good faith, which the IRS values highly in these situations. Don't overthink it - you're on the right track with the $0/RC approach!

This has been such an informative discussion! I'm coming at this from the employee side - my company just announced they're looking into wellness benefits and I wanted to understand the tax implications before they roll anything out. Reading through everyone's experiences, it sounds like there are legitimate ways to structure these benefits that work for both employers and employees. The key seems to be proper documentation and staying within IRS guidelines rather than trying to find workarounds. I'm particularly interested in the $100 annual exclusion for qualified wellness programs that several people mentioned. Does anyone know if this amount gets adjusted annually, or has it been stable at $100 for a while? Also, if a company offers the tax-free portion through a wellness program, are employees required to participate in any specific activities to qualify, or is simply being enrolled in the program sufficient? From an employee perspective, I'd honestly prefer knowing upfront about any tax implications rather than being surprised later. Transparency about how benefits are structured seems way better than companies trying to be "creative" with reporting and potentially creating problems down the road. Thanks to everyone who shared their real-world experiences - this is exactly the kind of practical guidance that's hard to find elsewhere!

I've been quietly following this discussion as our company is in a very similar situation. What I find most valuable here is seeing the evolution from "how do we avoid reporting this" to "how do we structure this properly" - that's exactly the mindset shift our leadership team needs to make. The consensus seems clear: there ARE legitimate ways to offer wellness benefits with favorable tax treatment, but it requires proper structure and documentation from day one. The hybrid approach of $100 tax-free through a qualified wellness program plus transparent handling of anything beyond that seems like the sweet spot for most companies. One thing I haven't seen addressed much is the administrative burden. For companies considering this, how much ongoing administrative work is involved in maintaining a compliant wellness program? Are we talking about a few hours per month, or does it require dedicated HR resources? Also, I'm curious about timing - if we start with the gym discount approach while building out a proper wellness program, is there a recommended timeline for transition? I don't want to promise employees benefits and then have to restructure everything a few months later. Thanks to everyone who's shared their experiences. This thread should honestly be required reading for any HR professional dealing with employee wellness benefits!

This is exactly the kind of situation that makes me so frustrated with how confusing the IRS makes everything! Code 807 is brutal - it basically means they're saying "we don't believe your withholding actually happened" and just wiped it out. I went through something similar last year when my employer's payroll system got hacked and they had to resubmit everything to the IRS. The worst part is you're now stuck with penalties for something that's probably not even your fault. Definitely check your Wage & Income Transcript against your W-2 like others suggested. If there's a mismatch, your employer needs to fix it ASAP with a W-2c. One thing I'd add - document everything! Screenshot your transcript, keep copies of emails with your employer, everything. The IRS moves slow but once the correction goes through, those penalties should disappear. Hang in there, this will get sorted out! 💪

OP, I feel your pain! Just went through this exact same nightmare a few months ago. That Code 807 removing your withholding is the culprit here - it means there's a discrepancy between what's on your W-2 and what your employer actually reported to the IRS. The penalties and interest kicked in because without that $11,557 withholding credit, you technically underpaid your taxes for 2023. Here's what you need to do ASAP: Log into your IRS online account and pull your "Wage and Income Transcript" for 2023. Compare every number on there with your actual W-2, especially the federal withholding amounts. If they don't match (which they probably won't), contact your employer's payroll department immediately and ask them to file a corrected W-2c with the IRS. The good news is once that correction goes through, the IRS should restore your withholding credit and reverse those penalties since it wasn't your fault. It takes about 6-8 weeks for the whole process, but you should get back to expecting a refund instead of owing money. Keep all your documentation and don't panic - this is way more common than it should be! 🤞

I'm dealing with a similar situation but with a different twist - I moved from Hong Kong to the US in early 2024 and my MPF provider is telling me I can only withdraw after being outside Hong Kong for 12 months. So I won't be able to access my funds until early 2025. From what I'm reading in this thread, it sounds like the tax treatment will be the same regardless of when I actually receive the money - it'll be taxable income in the year I receive it (2025 in my case). But I'm wondering if there are any planning opportunities since I have advance notice of when this income will hit. For example, would it make sense to try to keep my other income lower in 2025 to stay in a lower tax bracket when the MPF distribution comes in? Or are there any strategies for spreading the tax impact across multiple years? My MPF balance is pretty substantial after working in Hong Kong for 8 years, so I'm worried about the tax hit all coming at once. Has anyone dealt with the 12-month waiting period requirement and found any useful planning strategies for managing the eventual tax impact?

Just wanted to add some perspective as someone who went through MPF withdrawal taxation a couple years ago. One thing that really helped me was getting a letter from my MPF provider in Hong Kong that specifically broke down the tax treatment of my contributions there. This documentation was crucial when my US tax preparer was trying to determine what portions might qualify for different treatment. The key insight for me was understanding that Hong Kong salaries tax had already been paid on the mandatory employee contributions going into the MPF, but the employer contributions were made pre-tax. This distinction mattered for US tax purposes, though as others mentioned, any investment growth is still fully taxable here regardless of the source. Also, don't overlook state tax implications if you're in a state that taxes income. Some states have different rules for retirement distributions that might affect your overall tax situation. California, for example, generally follows federal treatment but you'll want to confirm based on your specific state. The complexity really justified getting professional help for me - between federal taxes, state considerations, and potential FBAR reporting, there were too many moving pieces to risk getting wrong on a DIY approach.