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Another option is to try calling the general IRS customer service line at 1-800-829-1040 and asking them to transfer you to ID verification. Sometimes you can get through faster that way than calling the direct ID verify line. Also, if you have a local Taxpayer Assistance Center (TAC) near you, you can make an appointment and they can help verify your identity in person - might be faster than waiting on the phone!
Check if your local library has any free tax help programs too! A lot of them have VITA volunteers who are familiar with IRS verification issues and might be able to help you figure out next steps. Also worth trying the IRS2Go mobile app - sometimes it shows notices that don't appear on the website. Good luck! š¤
Just chiming in with a tip from someone who's been there - since this is your first year with an S-Corp loss, consider getting at least a consultation with a CPA who specializes in small business taxes. My first year, I tried doing it all myself and missed some key elections and documentation that would have given me better tax treatment. Cost me way more in the long run than just paying for proper advice upfront.
Just wanted to add something important that hasn't been mentioned yet - make sure you understand the "at-risk" and "passive activity" rules that can limit how much of your S-Corp losses you can actually deduct on your personal return. Even though the losses flow through to your personal taxes, you might not be able to use all of them immediately depending on how much you invested in the business and whether you materially participated in running it. Since you mentioned this is your first year dealing with S-Corp taxes, I'd really recommend documenting your time spent working in the business (even if unprofitable) to prove material participation. The IRS has specific tests for this, and if you don't meet them, your losses could be considered "passive" and limited in how they offset other income. Keep a log of hours worked, business activities, decision-making responsibilities, etc. Also, while everyone's mentioning the loss carryforward benefits (which are real), remember that S-Corp losses can only offset your basis in the company. If your losses exceed what you've actually invested in the S-Corp, you can't deduct the excess until you increase your basis through additional investments or loans to the company.
This is such an important point that I wish someone had explained to me when I started my S-Corp! The basis limitation really caught me off guard. I had put in $5,000 initially but had $12,000 in losses my first year. I couldn't deduct the full $12,000 until I either put more money into the business or it became profitable and increased my basis. The material participation documentation is crucial too. I learned this the hard way when I got questioned during an audit. Now I keep a detailed log of everything - meetings, business development calls, administrative work, even time spent learning about the industry. The IRS wants to see that you're actively running the business, not just a passive investor. One thing to add - if you do end up with suspended losses due to basis limitations, they don't disappear. They carry forward indefinitely until you have enough basis to use them. So keep good records of what you couldn't deduct each year!
To all those having a human at IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/_kiP6q8DX5c
I've been dealing with the same issue! The silent calls are so frustrating. I've tried calling multiple times and keep getting disconnected without ever an actual person. Has anyone found a reliable time of day when you're more likely to get through? I'm wondering if calling first thing in the morning might work better than during peak hours.
I'm new here but I've been having the exact same problem with silent IRS calls! @Lydia Santiago you mentioned trying different times - I ve'actually had better luck calling around 7:00 AM EST right when they open. The wait times are still long but at least I don t'get the silent hang-ups as much. Also, I noticed that if you get a silent call, sometimes waiting about 30 minutes before calling back helps avoid getting stuck in the same queue loop. Hope this helps!
Instead of constantly checking transcripts, I set up text alerts with my bank for deposits. Way less stressful than refreshing the IRS page all day. My refund showed up three days before the WMR tool even updated last year. The IRS systems don't always sync up in real-time with what's actually happening with the money.
I'm seeing the same thing and it's really frustrating! Filed 2/8 and still nothing on my transcript. Been checking every night hoping for a DDD but just seeing the same "processing" message. Has anyone noticed if the IRS is prioritizing certain types of returns? Like maybe simple 1040EZ forms are going through faster than returns with schedules? I have Schedule A and wondering if that's adding to the delay. Also wondering if anyone has insights into whether weekend updates are happening at all this year? Last year I remember seeing some Saturday morning transcript updates but haven't seen any mentions of that recently. Really hoping they sort out whatever system issues they're having soon. Need to plan some bills around this refund timing!
Summer Green
Try checking your transcript if you can access it. It might show if there's an issue with your refund that's not showing up on the IL website. I was in a similar situation and taxr.ai helped me decode what was actually happening with my refund when the state website was useless. Turns out there was a review flag on my account that was causing the delay. https://taxr.ai
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Javier Gomez
I'm dealing with the exact same issue! Filed my Illinois taxes in early March using Cash App direct deposit and it's been showing "refund issued" for weeks now with nothing in my account. Reading through all these responses, it sounds like Illinois has major issues with payment apps this year. I'm definitely going to call the IL Department of Revenue tomorrow to see if my deposit failed. Thanks everyone for sharing your experiences - at least now I know I'm not alone in this! Next year I'm definitely going back to my regular bank account. These payment apps just aren't worth the hassle for tax refunds.
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