I've been dealing with MLP K-3 issues for the past few years and can definitely relate to your frustration. The key insight that helped me was understanding that when a partnership makes such an explicit statement about having no foreign source income or foreign taxes, they're legally bound by that representation. Your MLP's statement is actually quite comprehensive - they're not just saying they don't currently have foreign income, but that they "do not own assets generating income" from foreign sources. This is a structural statement about their business model, not just a current snapshot. I've found that most MLPs in the energy infrastructure space (pipelines, storage, etc.) operate purely domestically and genuinely have no foreign exposure. When they make these clear statements on the K-1, it's because they have complete certainty about their operations. The unfortunate reality is that the K-3 requirement has created this administrative burden where partnerships must produce forms even when there's nothing to report. But from a practical standpoint, if you uncheck the foreign transaction box based on their explicit statement, you're following their guidance and acting reasonably. I'd recommend keeping a copy of that K-1 statement with your tax records just in case, but you should feel confident proceeding with your filing on schedule.

I've been through this exact scenario with my MLP investments and want to share what I learned from both my tax preparer and direct IRS guidance. When your K-1 explicitly states that the partnership "does not own assets generating income and otherwise does not have foreign source income or incur foreign taxes," this is actually a very strong legal statement that you can rely on for filing purposes. The confusion around K-3 timing is unfortunately common, but here's what many taxpayers don't realize: the IRS requires partnerships to make K-3 forms available regardless of whether there's any foreign activity to report. This means even partnerships with zero foreign transactions must go through the K-3 process, which is why you're seeing these delays. In your situation, since the partnership has made such a clear and comprehensive statement about their lack of foreign exposure, you're absolutely justified in unchecking the foreign transaction box and filing on time. The partnership wouldn't make this statement if there was any uncertainty - they know taxpayers depend on this guidance for filing decisions. I've handled this the same way for three tax seasons now with multiple MLP investments and never had any issues. The key is that explicit language on your K-1 - that's your documentation that you made a reasonable decision based on the partnership's official guidance.

Same here! Got the 570 code about a week and a half ago and have been refreshing my transcript and checking the mail constantly. It's so nerve-wracking not knowing what's going on with your refund. Reading all these responses is actually really comforting though - sounds like most people get straightforward requests for verification. Really hoping mine is just something simple like what Emma and Landon dealt with. The waiting game is brutal but at least we're not alone in this! 😅

Just wanted to add my experience to help ease some anxiety! I had a 570 code last year and was freaking out for about 3 weeks before I got the letter. Turned out they just needed me to verify my identity online through ID.me - took maybe 20 minutes total and my refund was released within a week after that. The waiting is absolutely the worst part but try not to stress too much. From what I've seen here and in my own experience, it's usually something pretty routine that gets resolved quickly once you know what they need. Hang in there everyone! 💪

Just want to point out something else - if he's receiving SSI (not SSDI), there's a very important distinction. SSI is not taxable and doesn't appear on tax returns at all. SSDI might be taxable depending on other income. Make sure you're entering his disability income correctly in the tax software. Also, depending on the twins' adoption situation, there might be an Adoption Tax Credit he could claim if this was a recent adoption. This credit has different rules than the Child Tax Credit.

This is such a frustrating situation that so many people face! I went through something similar with my brother who's on SSDI with two kids. One thing that really helped us was getting a clear understanding of ALL the credits he might qualify for, not just the big ones everyone talks about. Beyond what others have mentioned about the Credit for Other Dependents, there are sometimes state-level credits that have different requirements than federal ones. Also, double-check that TaxAct is calculating everything correctly. Sometimes tax software doesn't handle disability income situations well, especially when there are qualifying dependents involved. You might want to try running the same info through a different tax program (many offer free versions) to see if you get different results. The suggestion about earning just a small amount of income to cross that $2,500 threshold is really smart. Even something like selling items online occasionally or doing small odd jobs (within disability limitations) could make a huge difference in qualifying for credits. The math often works out where the tax credits far exceed any small reduction in benefits. Keep advocating for him - you're doing great by not just accepting the software's initial answer!

Dont forget about the difference between qualified and disqualified dispositions for ESPP! If u hold the stock for at least 1 yr from purchase date AND 2 yrs from offering date, its a qualified disposition and part of your gain gets taxed as long term cap gains instead of ordinary income. could be BIG tax savings!!

Great question! Yes, you can absolutely use tax loss harvesting from your regular investments to offset ESPP capital gains - they're treated the same way by the IRS for offsetting purposes. Just to clarify the ESPP tax treatment since there seems to be some confusion in other comments: The 15% discount you received is indeed treated as ordinary income and should appear on your W-2. Your cost basis for capital gains purposes is the discounted price you actually paid ($85 in Emma's example), so you only pay capital gains tax on appreciation above that amount. One thing to watch out for - make sure you understand whether you had a qualified or disqualified disposition. Since you mentioned selling after about 3 years, you likely met the holding period requirements (1 year from purchase AND 2 years from grant date), which could make part of your gain eligible for more favorable long-term capital gains treatment. Also be careful about wash sale rules if you're still participating in the ESPP program - continuing to buy company stock through payroll deductions while selling at a loss could potentially disallow those losses. You might want to double-check your 1099-B and W-2 to make sure the tax reporting aligns with your actual transactions before finalizing your tax loss harvesting strategy.

This thread has been incredibly helpful! I'm dealing with a similar Form 2553 issue where my CPA put an effective date that doesn't align with my incorporation timeline. What I'm finding most valuable from everyone's experiences is the emphasis on being proactive rather than waiting for the IRS to catch and reject the error. It sounds like filing a corrected form immediately is definitely the way to go. One thing I'm curious about - for those who successfully corrected their Form 2553, did you need to include any specific documentation with the corrected form beyond the explanation letter? I want to make sure I submit everything the IRS needs the first time to avoid further delays. Also, Jessica (the original poster), have you had a chance to file your correction yet? Would love to hear how it goes since your situation seems very similar to what several of us are dealing with.

I'm a tax attorney and see this exact issue come up frequently with new S-Corp elections. You're absolutely right to be concerned - an effective date that predates the corporation's existence is a fundamental error that will likely result in rejection of your Form 2553. The good news is that this is completely fixable, and you're catching it early. Here's what I recommend: 1) File a corrected Form 2553 immediately - don't wait for the IRS to reject the original. Check the box indicating it's a corrected election and use either your incorporation date (06/05/24) or any date after that as your effective date. 2) Include a brief explanation letter stating that the original form contained an error due to professional preparation and that you're correcting the effective date to comply with the requirements that it cannot predate the corporation's existence. 3) Keep detailed records of both filings in case you need to reference them later. Regarding your accountant - multiple errors including getting your company name wrong suggests a lack of attention to detail that's concerning for tax matters. At minimum, they should fix this at no charge since it was their mistake. The key is acting quickly. The sooner you file the correction, the less likely you'll face the delays that some others have mentioned. This is a common error and the IRS has procedures in place to handle corrections efficiently when they're submitted proactively.