I went through this exact situation about 6 months ago! Had the 420 code show up and got that same "Audit Status Unavailable" error message. I was absolutely panicking because I needed my refund for rent. Turns out it wasn't an audit at all - they just needed to verify some information about my Earned Income Tax Credit. The whole thing took about 6 weeks from start to finish. I got a letter about 10 days after the 420 code appeared asking for some basic documentation (pay stubs and a few other things). The waiting is honestly the worst part because your mind goes to all the worst case scenarios. But in most cases like yours, it's just routine verification. Keep checking your mail daily and try to stay patient. Once you get that letter, you'll know exactly what they need and can get it resolved pretty quickly. Hang in there - you're going to get through this! 💪

I totally get the panic you're feeling right now - that 420 code can be super scary when you see it for the first time! I went through something similar last year and it turned out to be much less dramatic than I thought it would be. The "Audit Status Unavailable" error doesn't necessarily mean you're being audited - sometimes their system just shows that when there's no active audit status to display or when they're still processing something on their end. Since you haven't received any letters yet, I'd recommend waiting about 2 weeks before calling. The IRS usually sends correspondence within 10-14 days of when these codes appear, and calling too early might not give you much useful information. In the meantime, gather up all your tax documents (W-2s, 1099s, receipts for any deductions/credits you claimed) just in case they do need additional verification. Most of these reviews are routine and resolve within 4-8 weeks once they have what they need. Try not to stress too much (I know, easier said than done!). The vast majority of these situations are just verification requests, not full audits. You'll get through this! 🤞

Great question about accountable plans! I've been running my S-Corp for about 3 years now and can confirm that using personal credit cards for business expenses with proper reimbursement through an accountable plan is totally legitimate and tax-efficient. The key things I learned the hard way: 1) Keep meticulous records - I use a simple spreadsheet with columns for date, amount, vendor, business purpose, and attach digital receipts 2) Process reimbursements regularly (I do monthly) - don't let them pile up for months 3) Make sure your accountable plan document is in place BEFORE you start the reimbursements One thing that wasn't mentioned yet - since you're planning the S-Corp election, make sure you coordinate the timing with when you start using the accountable plan. You can't reimburse expenses tax-free that occurred before the S-Corp election was effective, even if they were legitimate business expenses for your LLC. Also, for software subscriptions and recurring expenses, I set up automatic monthly reimbursements to myself to keep everything current. Makes tax time so much easier when everything is already categorized and documented throughout the year. The airline miles strategy definitely works - I've earned enough for two free vacations just from my normal business spending!

This thread has been incredibly helpful! I'm in a similar situation with my consulting business and had been worried about the personal credit card strategy. Reading through everyone's experiences has cleared up a lot of confusion. One thing I wanted to add that might help others - I found that setting up a dedicated business checking account early makes the reimbursement process much cleaner, even if you're using personal cards for the actual purchases. When I reimburse myself from the business account to my personal account, it creates a clear paper trail that shows the accountable plan in action. Also, for anyone still researching this topic, IRS Publication 463 has a good section on accountable plans that covers the three main requirements mentioned earlier. It's not the most exciting read, but it's straight from the source and helped me understand exactly what documentation I needed to keep. The airline miles are definitely a nice bonus - I've been doing this for 8 months now and have already earned enough points for a nice vacation! Just make sure you're staying on top of the documentation because those receipts can pile up quickly.

Slightly off topic but if you donated working electronics, make sure you get a receipt that specifically mentions them! I donated a working TV, laptop and tablet when I downsized (all together probably worth $300-400) and didn't realize that electronics need to be specifically listed on donation receipts. Had to go back to the donation center and get an updated receipt. What a hassle!

Great question! I went through something similar when I moved last year. Based on what you've described, you're correct that you don't need Form 8283 since no individual item exceeds $500. However, I'd recommend double-checking how you're categorizing your donations. The key thing to watch out for is "similar items" - if you donated multiple pieces that would naturally be considered a set (like a dining table with matching chairs, or a complete bedroom set), the IRS might consider those as one donation. If any of these grouped items total over $500, you'd need Form 8283. For your documentation, those basic Goodwill receipts might not be sufficient for items over $250. You'll want written acknowledgment from the charity that describes what was donated and confirms you received no goods or services in return. I'd suggest contacting them for more detailed receipts for your higher-value items. Also, make sure you're using fair market value (what the items would sell for in their current condition) rather than what you originally paid. Most household items depreciate significantly, so your actual deductible amount might be lower than you think. Keep detailed records of everything - descriptions, estimated values, condition, and photos if you have them. This will be invaluable if you ever get questioned about your donations.

I'm dealing with a similar situation with my LLC that's been dormant for about 18 months. One thing I learned from my CPA is that you should definitely check if your state requires you to file an annual report or pay franchise fees even during inactive periods. Also, regarding the e-filing issue you mentioned - I found that some of the free tax software options like FreeTaxUSA actually do support Form 1065 filing, which might be easier than the paid alternatives if your situation is straightforward (no income, no deductions, just a basic zero return). The key thing my accountant emphasized is don't ignore the filing requirements just because you had no activity. The IRS treats "no response" very differently from "filed a zero return," and the penalties can add up quickly even if you owed no tax.

I went through this exact same situation with my consulting LLC last year! Here's what I learned from working with a tax professional: For your specific questions: 1. The IRS website doesn't support direct e-filing of Form 1065 - you need third-party software or mail it in. I ended up using FreeTaxUSA (as mentioned by Anna) and it worked great for our zero-activity return. 2. Only the LLC files the 1065, not individual partners. The form generates K-1s for each partner showing their share (even if it's zero). Each partner reports their K-1 info on their personal returns. 3. Yes, you still need to file even with no activity. The filing requirement starts when the LLC is legally formed as a partnership, not when you get an EIN or start business operations. One thing that saved me a lot of stress: there's actually a "reasonable cause" exception for late filing penalties when you can show the LLC had no activity and no income. You'll need to attach a statement explaining the situation when you file. Don't let the fear of penalties stop you from getting compliant - the IRS is often willing to work with taxpayers who make good faith efforts to catch up on dormant entity filings. Also definitely check your state requirements! Some states are much more forgiving than others for inactive LLCs.

I'm dealing with this exact situation right now too! My refund showed as sent 8 days ago on WMR but nothing in my account. After reading everyone's experiences here, I'm feeling much more confident this will work out. It sounds like the 5-7 business day window for bank rejection is pretty standard, so I'm probably right at the point where it should bounce back to the IRS soon. I'm going to check my tax transcript tomorrow to see if there are any rejection codes showing up yet. Has anyone noticed if there's a pattern to when these rejections typically happen - like do they tend to process on weekdays vs weekends? Also planning to verify my mailing address through my IRS online account just to be safe before the paper check gets issued. This community is so helpful - thanks everyone for sharing your experiences!

I'm going through this exact same thing right now! Filed my return 3 weeks ago and WMR shows my refund was sent 7 days ago, but I'm pretty sure I mixed up a couple digits in my account number. My bank confirmed they haven't received anything, so I'm expecting it to bounce back soon. Reading through everyone's experiences here has been incredibly helpful - I had no idea this was so common! I'm going to check my transcript this weekend to see if there are any rejection codes, and I've already verified my mailing address through my IRS online account. It's reassuring to know that the IRS typically handles these situations automatically with the paper check reissue. Has anyone here had experience with how long it takes for the rejection codes to show up on the transcript after the bank rejects the deposit?