Has anyone tried using TurboTax Self-Employed for calculating quarterlies with mixed income sources? Their website claims it can handle both self-employment and investment income for quarterly calculations.

I've been in a very similar situation and learned this the hard way last year. Yes, you absolutely need to include those short-term capital gains in your quarterly estimated tax calculations. The IRS considers all income when determining if you've paid enough throughout the year to avoid penalties. Here's what I'd recommend: Since you're already using the safe harbor method based on last year's tax liability, you have two main options: 1) Continue with safe harbor payments (100% of last year's tax if your AGI was under $150k, or 110% if over) and pay the additional amount due on your capital gains when you file your return. This is the simplest approach and guarantees no penalties. 2) Recalculate your remaining quarterly payments to include the capital gains. You'd add the estimated tax on your $7,800 gain (probably around $1,170-$2,340 depending on your tax bracket) and spread it across your remaining quarters. Given that your CPA is unavailable and you're worried about getting this wrong, I'd honestly go with option 1 for peace of mind. You can always adjust your approach next year once you have better guidance. The safe harbor rule exists exactly for situations like this where income is unpredictable.

keep calling them every week! i bugged them so much they finally processed mine after 45 days instead of 60

Ugh, I feel your pain! I'm currently on day 73 of my "60-day review" and still waiting. The IRS rep told me the same thing about waiting 120 days but honestly that feels like forever when you're counting on that money. I've been checking my transcript every few days but no updates yet. Has anyone tried requesting their congressman to help? I heard that sometimes works to speed things up.

Looking at all these responses, it sounds like your 570 code with the 971 code is totally normal - just means they're reviewing something (probably your Child Tax Credit claim). The fact that you don't see an 846 code yet means your refund hasn't been released, but that's expected with the hold in place. Based on what the former IRS employee said, you're probably looking at 3-4 weeks total for the review. Since your 570 is dated 05-15-2025, you might see movement in the next week or two. Keep checking your transcript weekly - you'll want to see a 571 code (hold released) followed by an 846 code (refund issued). The 290 code you mentioned for $500 is definitely an adjustment they made, so your final refund will be $500 less than what you expected. The 766 code for $2,800 is likely your Child Tax Credit. If you get tired of waiting and checking codes, it sounds like calling through one of those callback services might help speed things up if an agent can release the hold manually. But honestly, it sounds like everything is progressing normally - just slowly!

I feel your pain! Tax transcripts are like reading a foreign language. I went through the exact same thing last year - had a 570 code for what felt like forever and kept refreshing the Where's My Refund tool hoping for good news. From everything I've learned (the hard way), your situation sounds completely normal. The 570 with the 971 code means they're just doing their due diligence on your Child Tax Credit claim. It's frustrating but super common, especially this year. One thing that helped me stay sane was setting up a weekly reminder to check my transcript instead of obsessing over it daily. The codes will change when they change, and checking every day just made me more anxious. If you're really in a bind and need the money ASAP, calling through one of those services people mentioned might help. But otherwise, it sounds like you're on track for a normal resolution in the next few weeks. Hang in there!

Has anybody considered the step-transaction doctrine in this scenario? The IRS might look at the before/after ownership and conclude this was just a scheme to extract cash while avoiding dividend treatment.

One aspect that hasn't been fully explored is the timing of this transaction. If you're planning to do this near year-end or in conjunction with other corporate activities, the IRS will scrutinize the timing for tax avoidance motives. I'd also recommend documenting legitimate operational reasons for the acquisition well in advance. For example, if Corp B provides services or products that Corp A actually uses, or if there are genuine economies of scale from combining operations, make sure this is documented in board resolutions and business plans before executing the transaction. Another consideration: if Corp B has net operating losses or other tax attributes, there are complex rules under Sections 382 and 383 that could limit their use after the acquisition. This might actually reduce the overall tax efficiency of the structure. Have you considered whether a redemption under Section 302 might be a cleaner approach? If structured properly as a "substantially disproportionate" or "complete termination" redemption, you could potentially achieve capital gains treatment without the complexity of maintaining two corporate entities.

Might be worth asking your client to contact the IRS on their end to confirm the 1099-NEC was submitted correctly. Sometimes businesses think they've completed the process but actually missed a step. Had this happen with a small business client of mine last year - they thought they'd filed everything but it turned out their tax software had saved the forms as "pending" instead of actually submitting them. Caused a huge headache for their contractors.

Just went through this exact scenario two months ago! The key thing to remember is that your filing is correct - you reported the income you received, which is what matters. The IRS verification letter is just their way of reconciling their records when there's a timing mismatch. A few practical tips from my experience: 1) Respond to the letter within the timeframe they specify (usually 30 days), 2) Include a copy of the 1099-NEC you received along with a brief explanation that your client filed late, and 3) Keep copies of all your correspondence. The refund delay is frustrating but typically resolves within 6-8 weeks once they receive your response. I actually called the IRS after responding and they confirmed my documentation was sufficient - they just needed to match it against what they eventually received from my client. Don't stress too much about it, this is more common than you'd think with small businesses and independent contractors.