I've been through a very similar situation with a relocation package repayment, and I want to emphasize how important it is to get the Section 1341 calculations right. The IRS is pretty strict about the documentation requirements for claim of right situations. One thing I learned the hard way - when you're calculating the tax benefit under Section 1341, you need to use your exact tax situation from the original year, including any other income changes, deductions, or credits that might have affected your marginal tax rate. It's not just a simple percentage calculation. Also, regarding the FICA tax recovery from your former employer - don't let them brush you off. The employer gets to claim a credit for the excess FICA taxes they paid when they file Form 941-X, so this isn't costing them anything. They're legally required to refund you your portion. If they continue to resist, you might want to escalate to their legal or compliance department and reference IRC Section 3402(d) which covers this exact situation. Keep all your documentation organized and make copies of everything before you submit. The IRS sometimes requests additional supporting documents for these types of amendments, and having everything ready speeds up the process considerably.

I'm dealing with a similar relocation repayment situation right now and this thread has been incredibly helpful! I wanted to add one more consideration that might be relevant - if you received any interest or penalty charges as part of your repayment agreement, those are generally NOT eligible for the Section 1341 treatment. Only the principal amount that you're repaying (the original relocation benefits) qualifies for the claim of right relief. Any interest or late fees you might be paying should be treated separately, and unfortunately those typically aren't deductible for individual taxpayers under current tax law. Also, I noticed you mentioned using TurboTax for the practice amendment. While that's a good start, be aware that TurboTax's handling of Section 1341 situations can be limited, especially for complex scenarios involving multiple states. You might want to double-check their calculations manually or consider having a professional review the work before you submit, even if you do most of the prep yourself. The timeline you're looking at (filing in May with an extension) actually works in your favor since it gives you time to get everything right and deal with any employer pushback on the FICA issue before you file.

One more thing to keep in mind as you navigate your first S corp year - make sure you're tracking your basis in the S corporation throughout the year. Your basis affects how much of any losses you can deduct on your personal return, and it's adjusted by your share of income, losses, and distributions. Many new S corp owners overlook this, but it's crucial for tax planning. Your basis starts with your initial investment in the corporation, increases with your share of income and additional contributions, and decreases with distributions and your share of losses. If distributions exceed your basis, the excess becomes taxable capital gain. I'd recommend keeping a simple spreadsheet to track these adjustments monthly - it'll make year-end tax prep much smoother and help you make informed decisions about timing distributions vs. leaving money in the business.

As someone who's been through the S corp conversion process recently, I can confirm what others have said - you're on the right track! The S corp itself doesn't make federal income tax estimated payments since it's a pass-through entity. All the income, deductions, and credits flow through to your personal return. However, I'd add one important reminder about the timing of your personal estimated payments: since S corp income is reported on a K-1 that you typically don't receive until after year-end, you'll need to estimate your quarterly payments based on projections. I found it helpful to review my profit & loss statements monthly and adjust my estimated payments accordingly. Also, don't forget about potential backup withholding requirements if your S corp receives certain types of income without proper tax ID verification. And if you have any passive income (like rental income from corporate-owned property), that could trigger additional corporate-level taxes even for an S corp. The learning curve can be steep in that first year, but getting comfortable with these distinctions will save you headaches down the road!

Had this issue. Got delayed two months. No explanation. Called three times. Different answers each time. Finally received refund last week. 1099-R was from pension distribution. IRS agent finally told me they're reviewing these more carefully this year. Don't panic. It will come.

I'm in a similar boat with my 1099-R from a 403(b) rollover. Filed on 2/22 and still showing "Processing" on WMR with no transcript updates. My distribution was coded as "G" for direct rollover, so I thought it would be straightforward, but apparently not this year. It's reassuring to see others getting updates after 6-8 weeks - gives me hope that mine will eventually move through the system. Has anyone noticed if the processing times vary by the financial institution that issued the 1099-R? Mine came from TIAA-CREF and wondering if certain providers are flagged for additional review.

I'm in the exact same situation! Filed my CA state return in late January and it's been radio silence ever since. The waiting is absolutely killing me because I really need that refund for some unexpected expenses that came up. What's really frustrating is that I got my federal refund in less than two weeks, but here we are still waiting on the state. I've been checking the FTB website obsessively (probably not good for my mental health lol) and it just keeps saying "received" with no updates. Thanks for posting this - it's actually really comforting to see I'm not the only one going through this torture! 😅 Hopefully we'll all get some good news soon. The automated phone line tip someone shared is gold - definitely going to use that instead of trying to get through to a human agent!

I'm going through the exact same thing and it's so frustrating! Filed my CA return in early February and still waiting. What's really helped me is setting realistic expectations - I've seen from this thread that 4-6 weeks seems to be the norm this year for CA state refunds, which is longer than usual. I also started checking that automated line (1-800-338-0505) instead of the website since it's faster and less stressful than trying to get through to a human. One thing my tax preparer told me is that CA has been dealing with staffing shortages and increased fraud prevention measures, which is causing the delays. It sucks but at least we know it's not just us! Hang in there everyone - based on the timeline others have shared, we should hopefully start seeing movement soon! 🤞

I'm dealing with this exact same situation right now and finding this thread has been such a relief! Filed in late January expecting around $9,400 back, got the review letter about two weeks ago, and have been stressed ever since. Like so many others here, my return was straightforward - just W-2 income, mortgage interest, and standard deduction. The lack of clear communication from the IRS is definitely the most frustrating part. That vague "under review" status gives us no useful information when we're anxiously waiting for money we've been counting on. I've been guilty of checking Where's My Refund way too often - sometimes 3-4 times a day hoping something will change! What's really encouraging after reading everyone's experiences is seeing how many people eventually received their full refunds. The consistent 45-60 day timeline mentioned by multiple people gives me something concrete to expect rather than wondering if this will go on forever. I'm going to follow the advice here about checking weekly instead of daily and getting all my documents organized now so I'm ready if they request additional information. It's incredible how many of us are going through this right now with similar refund amounts and timeframes. Really makes it clear that this is just their standard verification process for larger refunds, not necessarily a sign that anything is wrong with our returns. Thanks to everyone who shared their stories - knowing we're not alone in this waiting game definitely helps with the anxiety!

I'm going through this exact same situation right now and this entire thread has been incredibly helpful and reassuring! Filed my taxes in early February expecting a refund of about $8,800, and just received the dreaded "under review" letter last week. Like everyone else here, my return was completely straightforward - just W-2 income from my job and standard deduction, nothing complicated at all. The anxiety has been real because I was planning to use that money to pay off some credit card debt and make a dent in my student loans. That vague IRS letter explaining absolutely nothing about why it's under review or how long it might take has been driving me crazy with worry. Reading through all these experiences has been such a relief though! Seeing how many people eventually got their full refunds after going through the same stressful waiting period gives me so much hope. The consistent 45-60 day timeline mentioned throughout this thread is really helpful - at least now I have some realistic expectation instead of wondering if this will drag on for months. I've definitely been guilty of the obsessive Where's My Refund checking that so many others mentioned. I'm going to follow the advice here and switch to weekly checks instead of multiple times per day. Also planning to get all my tax documents organized this weekend so I'm prepared if they do request additional verification. Thanks to everyone who shared their stories here. It's amazing how many of us are dealing with this right now, and it really helps to know we're not alone in this frustrating but apparently very common process!