Has anyone used the "Reasonable Cause Statement" approach when filing Form 2553 late? What kind of language actually works?? I'm in a similar spot and need to file under Rev. Proc. 2013-30 but worried about getting rejected.

I went through this exact same situation two years ago and can share what worked for me. With your income level at $230k, the S-corp election will likely save you significant money even for just one month - potentially $4-6k in self-employment tax savings. Here's what I'd recommend: File Form 2553 immediately using Rev. Proc. 2013-30 relief. For the reasonable cause statement, keep it straightforward - something like "Taxpayer was unaware of the election deadline and filing requirements but intended to elect S-corp status upon learning of the tax benefits." For payroll, you'll need to establish a reasonable salary for December. With your income, aim for around $7-8k for December (roughly $90-100k annualized). Yes, it's a hassle to set up payroll for one month, but the tax savings usually outweigh the setup costs. One thing others haven't mentioned - make sure you have adequate business bank account records showing clear separation between business income and personal draws. The IRS will want to see that you've been operating as a legitimate business entity. The key is acting quickly since you're already in December. Even if it feels rushed, the potential tax savings make it worthwhile for your income level.

According to 31 U.S.C. § 3720D and the implementing regulations at 31 CFR § 285.5(d)(6)(ii), the creditor agency MUST send notice at least 60 days before the offset occurs. This notice requirement is not waivable except in very limited circumstances outlined in subsection (iii) of the same regulation. I'm surprised more people don't challenge offsets on procedural grounds! If you can prove you didn't receive proper notice (by showing all mail received in the relevant timeframe), you have a strong case for immediate reversal while they investigate the notification failure. The Taxpayer Advocate Service can also assist with this specific issue as it represents a significant financial hardship combined with a procedural error by the agency. I never realized how complex this system was until I went through it myself!

I'm so sorry you're dealing with this stress right now! As someone who went through a similar situation with my tax refund being offset without proper notice, I wanted to share what worked for me. The lack of notification is actually your strongest point here - that's a clear procedural violation that you can use to your advantage. I'd recommend taking a two-pronged approach: 1. **Immediate action**: Call the Department of Education at 800-621-3115 and specifically mention you're military family dealing with PCS orders and received NO advance notice. Ask to speak with someone about expedited hardship relief due to military status. 2. **Documentation**: Start gathering everything now - your lease agreement for the April 1st move, any documentation about your vehicle situation, bank statements showing your financial position, and proof you didn't receive the required notices. The military angle really does help - I've seen it make a huge difference in processing time. Also, don't be afraid to mention the word "eviction risk" or "inability to secure housing" when describing your situation, as those seem to trigger faster responses. Keep calling if you get pushback. Sometimes you need to speak with 2-3 different representatives before finding one who understands the urgency of military family situations. Hang in there - this is fixable! 💪

Has anyone had this issue with H&R Block software specifically? Mine keeps giving me an error when I try to enter both companies, saying the name doesn't match the EIN in their database. I'm wondering if I should just go with a tax professional at this point.

I went through this exact same situation with my PEO W-2 from Insperity last year. The key thing to remember is that the IRS matching system is looking for the EIN to match the primary employer name listed first on the W-2. In your case, "PEO Services LP" should go in the employer name field exactly as shown, because that's what matches their EIN in the IRS database. Your actual workplace "Acme Industries LLC" is listed underneath as additional information, but it's not what the IRS system uses for verification. I made the mistake of trying to "correct" it the first time and got a rejection notice. Once I re-filed with the PEO as the primary employer name (exactly matching the W-2), it went through without any issues. The tax software warnings are there for a reason - they're trying to prevent mismatches with the IRS database. Don't overthink it - just enter it exactly as it appears on your W-2 and you'll be fine!

I just went through this exact same situation last month! Got the 2802C letter and was terrified at first, but it turned out to be totally routine. The verification call took about 20 minutes once I got through to an agent, and they were actually really helpful and patient with all my questions. One thing that helped me prepare was having my prior year AGI handy - they asked for that right away. Also, don't worry if you can't remember every single detail from your return - they understand that people don't memorize their tax forms. They'll work with you to verify your identity through multiple data points. My refund was released about 2 weeks after the verification call, much faster than the 9 weeks they initially quoted. The whole experience was way less scary than I expected. You've got this!

I actually just dealt with a 2802C letter myself about 6 weeks ago, and I can totally understand the panic! The whole thing ended up being much more straightforward than I expected. A few practical tips that helped me: First, gather ALL your documents before calling - not just what's listed in the letter. I also had my W-2s and 1099s ready just in case. Second, when you call, be prepared to answer questions about specific line items from your current AND prior year returns. They asked me about my total income, withholdings, and even some of the deductions I claimed. The agent was actually really professional and walked me through each step. They explained that my return was flagged because I had a significant change in income from the previous year (got a new job with higher pay), which can trigger their fraud detection systems. One thing nobody mentions - after verification, you can ask them to put notes on your account about why you were selected. This can help prevent future unnecessary verifications. My refund came through in exactly 18 days after the call, so definitely faster than their quoted timeframe. Don't stress too much - this really is just the IRS being extra careful with taxpayer refunds, which is actually a good thing for all of us!

I'm going through the exact same thing right now! Got my 4464C letter about a month ago after switching from a seasonal job to full-time work with almost double the income. Initially panicked thinking I'd messed something up on my return, but after reading all these experiences, I feel so much better knowing this is actually pretty normal. What really helped me was realizing that the IRS systems are just overwhelmed this year. My tax preparer explained that when you have significant life changes like job switches or income increases, their computers flag it for human review to make sure everything matches up. It's actually a good thing in a way - means they're being thorough. I've been following the weekly check routine someone mentioned earlier instead of obsessing daily, and it's definitely helped my stress levels. Still waiting for my employer data to show up on transcripts, but I'm trying to stay patient knowing that most people in our situation do eventually get their refunds processed. Hang in there - from everything I've read here and heard from others, the 60-90 day timeframe is realistic, and many resolve faster once the employer data catches up in their system. The waiting is brutal but we'll get through this!

I can definitely relate to your situation! I went through something very similar earlier this year - received a 4464C letter and immediately thought I had done something wrong with my taxes. The stress was overwhelming, especially when I needed my refund for some urgent expenses. From my experience and what I learned talking to an IRS agent, the 4464C letter is actually quite routine when you have significant income changes like you described. Your job change and income increase (tripling your salary) would definitely trigger their automated review system. The fact that your transcripts don't show any employer income yet is almost certainly just a processing delay, not an indication that your employers failed to report anything. What helped me the most was understanding that this is a verification process, not an audit or indication of wrongdoing. The IRS is simply making sure that what you reported matches what they receive from your employers. Once their systems catch up and process all the W-2 data, most of these cases resolve automatically. I know the waiting is incredibly stressful when you're counting on that refund money for necessary expenses like your car repairs. Try to be patient - the 60-90 day timeframe others mentioned is realistic, though many cases resolve faster. Keep checking your transcripts weekly if you can access them online, and once your employer income data appears there, your refund should process pretty quickly after that. You're definitely not alone in this situation - it seems like a lot of people are dealing with these income verification letters this year due to processing delays and economic changes that led to more job switches. Hang in there!