I'm dealing with something similar right now - got my refund in March but just received a 60-day letter last week. Based on what I've read here and my own research, it seems like these letters are often just administrative delays rather than signs of serious problems. One thing that helped ease my anxiety was calling the Taxpayer Advocate Service (TAS) at 1-877-777-4778. They can sometimes provide more context about what might have triggered the letter without you having to wait on hold for hours with the main IRS line. The representative I spoke with explained that these letters are often generated when there's a backlog in their correspondence department, not necessarily because there's an issue with your return. Since your transcript looks normal and you already received your refund, I'd say you're probably in good shape. Just keep that letter handy in case they do follow up, but try not to stress too much about it. The IRS has been dealing with massive backlogs and staffing issues, so these procedural delays have become pretty common.

I just went through this exact scenario a few months ago and wanted to share what I learned. The 60-day letter after receiving your refund is actually more common than you'd think, especially with the IRS still dealing with processing backlogs. In my case, it turned out to be related to a simple data entry issue on their end - they had flagged my return for review because one of my W-2 forms had a slightly different employer name format than what was in their system (my company had changed its legal name slightly). Even though my refund processed normally, this discrepancy was sitting in a queue somewhere waiting to be resolved. The key thing that helped me was keeping detailed records of everything. I made copies of the 60-day letter, noted the date I received it, and kept checking my online transcript weekly. About 6 weeks later, I got a simple letter saying the review was complete and no further action was needed. My recommendation would be to not panic but also don't ignore it completely. Keep the letter, monitor your transcript, and if you're really concerned, the Taxpayer Advocate Service can sometimes provide more specific information about what triggered the review. Most of the time these letters are just the IRS buying themselves time to work through their backlog of cases.

FYI - there's also the National Taxpayer Advocate office that handles more systemic issues. Different from the local TAS offices that handle individual cases. Prob not what you need rn, but good to know the diff. Also, TAS has been super backed up since COVID started and they never fully recovered their staffing. Might be worth trying to reach a regular IRS agent first to check your amended return status before escalating to TAS.

I actually got through to TAS about 6 weeks ago using that 1-877-777-4778 number. Here's what worked for me: I called at exactly 7:00 AM EST on a Tuesday and got connected after about 25 minutes on hold. The agent was really helpful once I explained that my amended return had been sitting for 5 months with no movement despite multiple calls to regular IRS lines. One thing that helped my case was that I had documentation showing the delay was affecting my ability to get a mortgage pre-approval. TAS seems to prioritize cases where you can show concrete financial impact from the delay, not just general frustration (though trust me, I was plenty frustrated too). Also, make sure you have your Individual Taxpayer Identification Number (ITIN) or SSN, the tax year in question, and your most recent contact with the IRS documented before you call. They'll ask for all of this upfront to verify your case qualifies for their assistance. Good luck - the wait times are brutal but once you get through, they're actually pretty effective at cutting through the red tape!

Has anyone had issues with backdoor Roth conversions being flagged when using TurboTax? I did mine through TurboTax last year and I'm wondering if there's something in their software that doesn't properly code these transactions.

This is unfortunately becoming a very common issue with backdoor Roth conversions. The IRS automated systems flag these transactions because they see a traditional IRA distribution without immediately recognizing the corresponding Roth conversion, especially when the 1099-R uses code "2" instead of "J". Your documentation sounds correct - Form 8606 showing the nondeductible contributions and conversions is exactly what you need. The key is presenting a clear paper trail to the IRS examiner. I'd recommend creating a simple chronological summary showing: 1. Date of traditional IRA contributions 2. Date of Roth conversions 3. Reference to your 8606 forms showing basis 4. Your 5498s confirming the transactions Include a brief explanation that these were nondeductible traditional IRA contributions that were immediately converted to Roth IRAs, which is a legitimate tax strategy. Don't get bogged down in technical details - just show them the money trail clearly. Most of these audits get resolved quickly once a human examiner reviews the complete documentation. The computer systems that initially flagged your return simply couldn't piece together the full transaction from the individual forms.

Check if you got any letters in the mail. My 570 was bcuz they needed to verify my identity

I'm going through the exact same thing! Had N/A for almost 2 months and just got the 570 code this week. From what I've researched, it usually means they're doing some kind of review but at least our returns are finally being processed. Trying to stay patient but it's so hard when you're counting on that refund 😅

I might have a different perspective than others here. I explored the multi-entity structure with IP holdco for my software business ($600K revenue) and ultimately decided AGAINST it. The annual compliance costs and complexity weren't worth the tax savings for me. Instead, I focused on maximizing other tax strategies like R&D tax credits, which gave me about $47K in tax savings last year with much less overhead. Sometimes simpler is better, especially at our size. Once I hit $2M+ in revenue, I'll reconsider the more complex structure.

As someone who's been through this exact decision process, I'd suggest starting with a comprehensive analysis of your specific situation before jumping into any complex structure. At $750K revenue, you're right at the threshold where it could make sense, but the devil is really in the details. A few key questions to consider: What's your current effective tax rate? How much of your revenue comes from IP licensing vs. direct software sales? Are you planning significant growth in the next 2-3 years? The answers will heavily influence whether the complexity is worth it. For what it's worth, I started with a simpler structure (single LLC with good tax elections) and gradually added complexity as my business grew. Sometimes it's better to implement these changes in phases rather than trying to build the perfect structure from day one. You can always restructure later when the tax savings clearly justify the additional overhead. Also worth noting - make sure you have a solid business reason for the structure beyond just tax savings. The IRS looks much more favorably on arrangements that have legitimate business purposes like asset protection, operational efficiency, or risk management.