Hey Andre! Just to add some context - that Memphis TN office is legit, it's one of the IRS's major processing centers. The timing makes sense if you or someone (like your school's financial aid office) requested this for FAFSA purposes around mid-February. One thing to note: this letter is specifically saying they have NO record of a processed return for the tax period, which is exactly what you'd want for financial aid verification if you weren't required to file or haven't filed yet. If you're still unsure who requested it, definitely call that 800 number - they can tell you the source of the request. But honestly, sounds like everything is in order for your FAFSA needs! Just keep that tracking ID handy in case you need to reference this letter later.

Quick tip for anyone dealing with these verification letters - if you need multiple copies for different schools or applications, you can request additional copies through the IRS online account portal or by calling that 800 number. They'll send you official copies with the same tracking ID. Super helpful if you're applying to multiple schools or programs that each need their own copy! Also, these letters are typically valid for about 120 days from the issue date, so if you're planning to use it for next year's FAFSA or other applications, just keep that timeline in mind. The February 15th date on yours gives you plenty of time though! Hope this helps other folks who might be in similar situations 😊

As a tax professional, I'd say anything over $6,000-7,000 in refunds might be worth reconsidering, but honestly it depends on your financial discipline and goals. Some of my clients deliberately overwithhold by $8,000+ because they know they'd spend the extra money throughout the year instead of saving it. A good middle-ground approach is to start conservative (like you're planning) for the first year, then use that actual refund amount as a baseline. If you get back $4,000, you might be perfectly happy with that forced savings. If you get back $10,000, you might want to adjust one of your W-4s the following year to claim 1 allowance or use the estimator tool to fine-tune it. The beautiful thing about your situation is you have flexibility. Since you're both going to be W-2 employees with steady income, predicting your tax situation will be relatively straightforward compared to people with variable income or complex deduction situations. One last tip: when you do start the nursing job, keep your first few paystubs and maybe run them through the IRS withholding calculator around October. That'll give you a good preview of where you'll land tax-wise and whether any mid-year adjustments make sense.

I've been following this thread as someone who went through the exact same transition a few years ago - from student to full-time healthcare worker while my partner already had steady employment. Your approach is absolutely solid and very common among couples who prefer the "forced savings" method. One thing I wish someone had told me when I started my first nursing job: don't be alarmed if your first few paychecks seem to have a lot taken out for taxes. Between federal, state, FICA, and any benefits deductions, it can be a bit of a shock compared to the smaller paychecks from seasonal work. But remember, that higher withholding is exactly what will give you that nice refund you're planning for. Also, keep in mind that as a new nurse, you might have some additional tax considerations down the road - things like continuing education expenses, professional licensing fees, or if you end up picking up extra shifts. These can potentially be deductible, but starting with your conservative withholding approach gives you a good foundation regardless. The peace of mind approach has worked really well for my household. We've never regretted having that extra buffer, especially during our first few years when we were still figuring out our new financial normal with dual full-time incomes. Congratulations on almost finishing nursing school - you're going to do great!

As someone who's been through several 338(h)(10) elections, I wanted to add a perspective on managing the overall project timeline that hasn't been discussed much here. One thing I learned the hard way is that these elections create dependencies across multiple workstreams that need careful coordination. You've got valuation work, legal documentation review, tax calculations, financial statement adjustments, and regulatory filings all happening simultaneously with different deadlines. I now create a master project timeline that maps out all deliverables with their interdependencies. For example, you can't finalize your deferred tax calculations until the asset allocation is locked down, but you need preliminary deferred tax estimates to assess the overall transaction economics. Similarly, the Form 8883 preparation depends on having final asset valuations, but those valuations might need input from tax advisors about optimization strategies. Also, don't underestimate the time needed for buyer-seller coordination on the allocation. Even with purchase agreement language that seems clear, there's often back-and-forth on methodology and specific asset values. Build extra time into your schedule for this negotiation process. One last tip: establish clear communication protocols early. With so many advisors involved (tax, legal, valuation, accounting), it's easy for people to work on outdated assumptions or miss important updates. Regular status calls with all key parties can prevent a lot of rework later in the process. The technical accounting and tax aspects are complex enough without adding project management challenges on top!

This thread has been incredibly helpful for understanding 338(h)(10) elections! I'm currently working through my first one and have been struggling with some of the practical implementation details that you all have covered so well. One question that's come up for us: how do you handle situations where the target company has intercompany balances with the seller's other subsidiaries? In our case, the target has significant intercompany receivables and payables that were part of the consolidated group's cash management system. I'm wondering if these intercompany balances get treated as part of the deemed asset sale, or if they need to be settled separately as part of the pre-closing restructuring. Our legal team is saying they should be eliminated before the deemed liquidation, but our tax advisors seem to think they could be treated as assets/liabilities in the allocation. Also, has anyone dealt with intercompany licensing agreements or management fee arrangements that were in place pre-transaction? I'm trying to figure out if these ongoing relationships affect the 338(h)(10) analysis or if they're treated as separate post-closing arrangements. The coordination challenges @Oliver Schmidt mentioned are definitely real - we're juggling input from so many different advisors on these intercompany issues that it's hard to get a clear answer on the right approach. Thanks again to everyone for sharing their experiences - this community has been invaluable for navigating such a complex area!

This thread has been incredibly helpful for understanding SCorp distribution timing and documentation! As someone who just elected S Corp status this year, I was really stressed about making sure I follow all the rules correctly. One thing I'm still wondering about is how to handle the transition from my previous business structure. I was operating as a sole proprietorship for two years before making the S Corp election, so I don't have any existing corporate documentation or basis tracking systems in place. Should I be creating retroactive documentation for the period since my election became effective, or do I just start fresh with proper documentation going forward? Also, for those of you who've been doing quarterly distributions - do you typically plan these around your estimated tax payment dates, or is that just coincidental? I'm trying to figure out if there are any advantages to coordinating distribution timing with quarterly tax obligations, especially since SCorp income passes through regardless of when distributions are actually taken. The emphasis on consistent documentation from day one really resonates with me. I'd rather be overly cautious with paperwork now than scramble to reconstruct everything later if questions arise.

One practical consideration I haven't seen mentioned yet is how to handle distributions when your business has seasonal cash flow variations. I run a landscaping business where 80% of our revenue comes in spring/summer, but expenses are more evenly distributed throughout the year. What I've learned is to be extra conservative with distributions during peak earning months. It's tempting to take large distributions when cash flow is strong, but you need to ensure you'll have sufficient basis and business cash flow to cover slower periods. I now follow a "smoothing" approach where I calculate an estimated annual distribution target based on projected profits, then divide that into quarterly amounts regardless of when the actual revenue comes in. This prevents me from taking too much during good months and having to skip distributions entirely during lean periods. Also, if you have employees, factor in payroll commitments before determining distribution amounts. Nothing worse than taking a large distribution in July only to realize you can't make payroll in February when revenue drops. Business cash flow planning and personal distribution planning need to work together, not against each other.

One additional tip that might help for future reference - I always recommend downloading and saving your RSU release documents immediately when they vest. Companies sometimes change brokerages or systems, and those detailed vest confirmations can be harder to access later. Also, if you have multiple RSU grants or future vests, consider setting up a simple tracking system now. I use a basic spreadsheet with columns for vest date, shares vested, FMV at vest, shares sold for taxes, and remaining shares. It makes tax time so much easier when you have everything organized in one place. The IRS has been cracking down on unreported stock compensation lately, so having good records is more important than ever. Your situation sounds straightforward now that others have explained it, but having that documentation trail will be valuable if you ever get audited or have questions in future years.

I went through almost the identical situation last year with my RSUs! The confusion around cost basis is so common because brokerages don't always make it clear how the tax withholding affects the reporting. Your understanding is correct - the 1099-B only reflects the 83 shares sold for tax withholding, not your full vest. The key insight that helped me was realizing that when RSUs vest, you're immediately taxed on the full fair market value as ordinary income (which shows up on your W-2), regardless of whether some shares are sold for taxes. So for your 137 remaining shares, your cost basis is indeed $241.50 per share. When you eventually sell them, you'll only pay capital gains tax on any appreciation above that amount. For the 83 shares sold for taxes, you actually have a small capital loss since they sold at $238.75 vs the $241.50 FMV at vest. Make sure to capture this loss on your return - it's real money even though it was automatically handled. The most important thing is ensuring your tax software properly accounts for the fact that the $53,130 in compensation income was already taxed via your W-2. Most good tax software will catch this when you enter both documents, but it's worth double-checking that you're not getting double-taxed on the same income. Keep those vest confirmation documents forever - you'll need them for future reference!