Has anyone seen what happens if you file a joint return and one spouse has positive QBI while the other has a QBI loss carryforward from a separate business? Does the loss carryforward offset the other spouse's positive QBI?

This is exactly the kind of confusion that trips up so many taxpayers! I went through the same thing last year and it took me forever to understand that these are essentially two parallel tracking systems. Think of it this way: your Schedule C loss gets used immediately in 2021 to reduce your overall taxable income. But the QBI system also creates a separate "ledger" that tracks negative QBI amounts that must be applied against future positive QBI before you can claim the 20% deduction. The key insight is that the IRS designed the QBI deduction rules to prevent cherry-picking profitable years while ignoring loss years. So even though your $2,850 loss already reduced your 2021 taxes, it also creates a "QBI debt" that must be settled against future business profits before you can benefit from the QBI deduction. Your tax software should handle this automatically, but understanding the concept helps you verify that everything is being calculated correctly. The good news is that once you use up that carryforward against positive QBI, it's gone and won't keep following you around forever.

I'm going through the exact same thing right now! Filed in early April and just found out yesterday that my bank rejected the deposit because I closed that account in February (totally spaced on updating my info). Reading through all these responses is both helpful and terrifying - sounds like anywhere from 3 weeks to 3+ months depending on how backed up they are. I'm really hoping it's closer to the 4-5 week timeline some people mentioned. I've already signed up for USPS informed delivery based on the suggestions here, and I'm going to try pulling my transcript this weekend to see if I can figure out what's happening. Has anyone had success with the Taxpayer Advocate Service for situations like this? I'm wondering if it's worth trying since I really need this refund for some medical bills that are coming due soon.

I'm dealing with this right now too - my refund was rejected about 3 weeks ago due to a closed account. The uncertainty is definitely the worst part! Based on what I'm seeing here, it sounds like most people are getting their checks between 4-6 weeks, but there are some horror stories of much longer waits. One thing I learned from calling my bank is that they usually send the rejection notice back to the IRS within 1-2 business days, so at least that part happens quickly. I've been checking my transcript weekly and finally saw some movement last week with new transaction codes showing up. For anyone waiting, I'd definitely recommend setting up USPS Informed Delivery like others mentioned - it's free and at least gives you a heads up when mail is coming. I also put in a mail hold at the post office since I'll be traveling next week and don't want to miss the check if it arrives while I'm gone. Hang in there everyone - hopefully we'll all have our checks soon! 🤞

4 Don't forget about state taxes! The IRS payment deadline applies to federal taxes, but your state might have different rules and deadlines for payment. Make sure you check your state's tax website too.

Hey Marcus! I just went through this exact situation last month and wanted to share what I learned. You're absolutely right to stress about this, but there are good options available. First, you do have until April 15, 2025 to pay without the failure-to-pay penalty, even though you filed early. But here's what I wish someone had told me - even if you can't pay the full amount by April 15, you should still file your return on time (which you already did!) because the failure-to-file penalty is way worse than the failure-to-pay penalty. If you can't pay by April 15, definitely set up an installment agreement ASAP. The IRS is actually pretty reasonable about payment plans. For amounts under $50k, you can usually get approved online instantly. The setup fee is only $31 if you do it online with direct debit, and you can choose a payment plan that works with your budget. One thing that really helped me was calculating exactly what each option would cost. Interest starts April 15 at about 8% annually, plus there's a 0.5% monthly penalty on unpaid balances. So if you owe $3,000 and set up a 12-month payment plan, you're looking at maybe $150-200 total in interest and fees, which isn't terrible spread over a year. Don't let the stress eat at you - the IRS deals with this situation constantly and they have systems in place to help. You've got options!

That's a really creative approach with the prefab metal building! I'm curious about the logistics - did you run into any issues with electrical and plumbing connections since it's technically "portable"? And how did your insurance company handle coverage for a structure that's classified as equipment rather than part of the building? I'm also wondering if there are any restrictions on what types of business activities you can conduct in these portable structures versus permanent buildings. My importing business would involve some heavy inventory storage, so I want to make sure the foundation and structure can handle the weight loads properly. The 7-year depreciation schedule sounds much more attractive than 39 years! Did your tax professional have to provide any special documentation to the IRS to justify the equipment classification?

This is such a timely question for me! I'm in a very similar situation with my consulting business and have been researching this exact scenario for months. One thing I haven't seen mentioned yet is the potential impact on your state taxes. Some states have different rules for business property depreciation that might affect your overall tax strategy. Also, if you're planning to use the space for both your existing business and the new importing venture, you might need to be extra careful about how you allocate expenses between the two businesses. I'd also suggest documenting everything meticulously from day one - not just the construction costs, but photos showing exclusive business use, utility bills, maintenance expenses, etc. The IRS tends to scrutinize home office deductions pretty closely, especially for larger spaces like a detached garage. Have you considered whether the timing of when you start the construction versus when you launch the new business might affect which expenses can be claimed as startup costs versus ongoing business expenses? I've read that timing can be crucial for maximizing your deductions.

I'm going through the exact same thing right now! My 971 code appeared on my transcript about 12 days ago and I've been checking my mail every single day with no letter yet. Like everyone else here, I've had absolutely no luck getting through to the IRS phone system - it's incredibly frustrating when you just want a simple status update. Reading through all these responses has been so helpful and reassuring. It sounds like the 2-3 week timeline is pretty standard this tax season, especially with the processing delays everyone is mentioning. I also had some investment income this year (stock sales and dividend payments), so based on what others are sharing, that's probably what triggered the automated review even though I was very careful with my reporting. The uncertainty is definitely the worst part - you start imagining all sorts of worst-case scenarios when you don't know what type of notice it is. But the fact that you only have the 971 code without any holds or examination codes is encouraging, and it sounds like most of these end up being routine verification requests or minor adjustments. I'm going to try to follow everyone's advice here and be patient for another week or so before really panicking. At least we know we're not alone in this waiting game! Hopefully both our letters arrive soon and we can finally stop the obsessive mailbox checking routine.

I'm going through this exact same situation and finding this thread has been such a relief! My 971 code appeared on my transcript about 9 days ago and I've been doing the daily mail monitoring routine just like everyone else here. I've also tried calling the IRS multiple times but it's absolutely impossible to get through - the automated system is like a maze designed to keep you out. What's really helpful about reading all these experiences is seeing the consistent 12-21 day timeline that most people are reporting for letter delivery. I also had some investment activity this year (sold some ETFs and received capital gains distributions), so based on what others have shared, that's likely what triggered the automated review even though I triple-checked all my 1099s and cost basis calculations. The uncertainty is definitely the hardest part - your mind starts racing through every possible scenario when you don't know what type of notice is coming. But the fact that you only have the standalone 971 code without any 570 holds or examination codes is actually encouraging based on what others have mentioned here. I'm trying to channel everyone's advice and stay patient for another week or so before getting too anxious. At least we know this is a pretty common experience right now and most people are reporting that their letters end up being routine correspondence rather than anything serious. Hopefully yours arrives soon and you can update us on what it turns out to be!