This thread has been incredibly helpful! I'm a new business owner who just got my EIN last month and was completely confused about the S Corp election timeline. Reading through everyone's experiences, it sounds like the key factor is when you actually START doing business activities, not just when you get your paperwork filed. For those still figuring this out - it seems like the consensus is that if you haven't opened business bank accounts, made sales, issued stock, or conducted any real business operations, your 2 month + 15 day clock hasn't even started yet. That's such a relief because I was stressing about some arbitrary January 1st or incorporation date deadline. Gabriel, definitely document when you first start any business activities so you have a clear timeline for your Form 2553 filing. And based on what others have shared, even if you do miss the deadline, the IRS seems pretty reasonable about late election relief for new businesses with legitimate reasons. Thanks everyone for sharing your real experiences - this is way more helpful than the confusing official guidance!

Gabriel, I went through this exact same confusion when I formed my LLC and elected S Corp status! The good news is that based on what you've described, you're likely still within your filing window. The 2 month and 15 day period starts from the earliest of three events: when you begin conducting business, when you acquire assets, or when you issue stock. Simply having your Articles of Incorporation filed doesn't automatically start the clock - it's about when you actually start operating as a business. Since you mentioned you haven't opened business bank accounts or conducted any transactions yet, your deadline period may not have even begun. The key is documenting when you take your first actual business action (opening that business bank account, making your first purchase, issuing stock certificates, etc.). I'd recommend filing Form 2553 as soon as you do start business operations, rather than waiting until near the deadline. And definitely keep detailed records of when you begin each business activity - this documentation will be valuable if the IRS ever questions your timeline. Don't stress too much about this! The IRS understands that new business owners often face confusion about these deadlines, and they're generally reasonable about late election relief if needed. But it sounds like you may not even need that option.

I just wanted to add that when you file next year, you might want to attach a cover letter explaining the situation along with copies of both the CP565 and CP567, plus a printout of your transcript showing the return was processed successfully. This creates a paper trail that will help if anyone questions the ITIN validity in the future. Also, keep in mind that ITINs expire if not used on a tax return for three consecutive years. So make sure to use it consistently, even if you're filing separate returns in some years. I've seen this exact issue at least 5 times with clients - contradiction between approval and rejection. In every case, when the return was processed with the ITIN, that trumped any rejection notice. The IRS systems just don't communicate well between departments.

I'm dealing with a very similar situation right now! My husband (also a nonresident alien) got his ITIN approved in May, we filed our return and got our refund processed, then got a rejection notice in June. Reading through all these responses has been so helpful. I checked our transcript online like several people suggested and it clearly shows our return was processed with his ITIN. That seems to be the key evidence that everything is actually fine despite the confusing rejection notice. One thing I learned from our tax preparer is that these contradictory notices are becoming more common as the IRS updates their computer systems. The different departments don't always sync up in real time, which creates these weird situations where you get approved then rejected (or sometimes the reverse). For anyone else in this boat - definitely keep both notices and check your transcript. If your return was processed and refund issued, you're almost certainly good to go. The processing system is what actually matters, not the automated notices.

I feel for you - this exact scenario happened to me two years ago and it's absolutely maddening! The disconnect between IRS payment processing and their notice system is a real problem that affects thousands of taxpayers every year. Here's what I learned from my experience: First, absolutely respond to the CP23 in writing even though you've called. Include copies of your payment confirmation, bank statements showing the deduction, and reference your previous calls with dates and any rep ID numbers you got. Send it certified mail to create a paper trail. Second, when you call back (and you'll probably need to call again), ask specifically for a "payment processing tracer" to be initiated on your account. This is different from just having them look up your payment - it's a formal process to track down payments that are stuck in their system. Also request a collection hold while the tracer is active. The most important thing I learned: don't assume this will resolve itself automatically once they find your payment. You'll likely need to follow up to ensure any penalties and interest are properly removed. The IRS rarely reverses these automatically even when the delay was entirely on their end. Document everything, stay persistent, and know that while frustrating, this will eventually get resolved. You paid on time and have proof - that's what matters most.

I've been following this thread closely because I'm dealing with a similar CP23 situation, and I wanted to share something that might help others avoid this mess in the future. After going through payment processing delays twice now, I've learned that the method you use to make estimated payments can significantly impact processing time. Electronic payments made through EFTPS (Electronic Federal Tax Payment System) seem to process more reliably than payments made through third-party processors or even the IRS Direct Pay system. For anyone making future estimated payments, I'd strongly recommend using EFTPS directly and keeping screenshot records of the confirmation page, not just the confirmation number. The screenshot shows the full transaction details that can be incredibly helpful if you need to dispute processing delays later. Also, for those currently dealing with this issue - when you call the IRS, ask specifically if your payment is in their "unpostable" queue. Sometimes payments get stuck there due to mismatched information (like slightly different name formatting or SSN entry errors) and require manual intervention to process. This is different from just being "slow to process" and needs a different type of resolution. The whole system is frustrating, but understanding these technical details can help you ask better questions and get more targeted help from IRS representatives.

Just wanted to add that my business partner and I chose an LLC for our home renovation company, and we elected S-corp taxation after the first year when we started making decent profit. The key advantage was paying ourselves reasonable salaries and taking the rest as distributions, which saved us thousands in self-employment taxes. One mistake we made was not having a really solid operating agreement at the start. Def spend the money to have a lawyer draft one that covers what happens if one partner wants out, gets disabled, etc. We had a rough patch where my partner wanted to take on projects I thought were too risky, and without clear decision-making protocols in our agreement, it created some real tension.

Great discussion here! As someone who's been through the LLC vs LLP decision for my electrical contracting business, I'd echo what others have said about LLC being the better choice for contractors. One thing I haven't seen mentioned is worker classification issues. With construction, you'll likely work with both employees and subcontractors, and the IRS scrutinizes this heavily. LLCs give you more flexibility in how you structure these relationships compared to LLPs. Also, if you're planning to eventually bring on additional partners or investors down the road, LLCs make that much easier. We started as just two partners but brought in a third after year two when we landed some bigger commercial contracts. The LLC structure made adding him straightforward without having to restructure the entire business. For what it's worth, our accountant recommended starting simple with basic LLC partnership taxation for the first year or two, then evaluating S-corp election once you're consistently profitable and can justify the payroll overhead. That approach worked well for us - kept initial compliance costs low while we were figuring out the business.

This entire thread has been a lifesaver! I'm in week 11 with my W7 return and was starting to panic that something had gone wrong. Reading everyone's detailed experiences really shows that these extended timelines are unfortunately normal for ITIN cases. A few things I've learned from my own experience that might help others: 1. The IRS considers paper returns with W7 applications completely separate from regular returns - they go to specialized processing centers and follow different workflows entirely. 2. Even after you receive the ITIN, your return still needs to go through what they call "re-association" where they manually link the new ITIN back to your original return. This alone can take 2-4 weeks. 3. The "Where's My Refund" tool is essentially useless for W7 returns until they're completely processed, so don't panic if nothing shows up for months. For anyone still waiting, I'd highly recommend calling the ITIN-specific line at 1-800-908-9982 rather than the general IRS number. The agents there actually understand the W7 process and can give you much better information about where your return stands. Thanks to everyone who shared their experiences - it really helps to know we're not alone in this incredibly slow process!

I'm going through this exact same situation right now and this thread has been incredibly reassuring! I filed my return with a W7 for my spouse back in January, received the ITIN in early March, but I'm now at 15 weeks with no updates on the actual return processing. What's really helped me is understanding that this isn't just a "slow processing" issue - it's actually multiple separate processes that have to happen in sequence. The W7 gets handled first, then there's this manual re-association step that nobody tells you about, then it goes into yet another queue for final processing. I called the ITIN-specific line (1-800-908-9982) that everyone mentioned and the agent confirmed my return is in the "post-ITIN manual review" stage. She explained that returns with newly issued ITINs require additional verification steps to make sure all the information matches up correctly in their system. The most helpful thing she told me was to expect a total timeline of 18-22 weeks from original filing for first-time ITIN cases. That puts me at another 3-7 weeks of waiting, which is frustrating but at least I have realistic expectations now. For anyone just starting this process - definitely don't e-file a duplicate return thinking yours got lost. The paper W7 returns follow a completely different workflow and the normal IRS tools don't track them properly until they're fully completed.