Has anyone dealt with self-certification of a QOF using Form 8996? I set up an LLC taxed as an S-corp for my QOF last year, and the form itself is pretty straightforward, but I ran into a few weird issues with the timing requirements for the 90% asset test that weren't clear from the instructions.

Great discussion everyone! I'm also working on a QOF structure and want to add one important consideration that hasn't been mentioned yet. When you elect S-corp taxation for your single-member LLC, you'll need to run payroll for yourself as the sole owner-employee, which adds ongoing compliance costs and complexity. The IRS requires S-corp owners who work in the business to take "reasonable compensation" as W-2 wages before taking distributions. This means you'll need to set up payroll, withhold employment taxes, and file quarterly payroll returns. For a QOF where you might have irregular cash flows especially in the early years, this can be challenging to manage. Just something to factor into your decision-making process along with the tax benefits. The LLC with S-corp election definitely solves the disregarded entity issue, but make sure you're prepared for the additional administrative burden.

Pro tip for dealing with CP 11 notices: ALWAYS keep a copy of your original tax return handy! I make PDFs of everything before submitting. Makes it so much easier to compare line-by-line with what the IRS is saying when you get one of these notices. Just saved me tons of time figuring out where my math apparently went wrong on my student loan interest deduction.

I went through this exact same situation about 6 months ago! Got my CP 11 notice and immediately panicked thinking I was in huge trouble with the IRS. Turns out it was just a simple calculation error on my Earned Income Tax Credit - I had miscalculated my qualifying income by including some unemployment benefits that shouldn't have been counted. The notice looked really intimidating at first, but once I sat down and compared it line by line with my original return, I could see exactly what they were talking about. The IRS explanation section actually does a decent job of breaking down what they changed, even though the language can be confusing at first glance. I ended up agreeing with their calculation and just paid the $430 difference online through the IRS website. The whole thing was resolved within a week and I haven't had any issues since. Don't stress too much about it - these math error notices are super common and definitely not the same as being audited. Just take your time reviewing the numbers and you'll figure out what happened!

As someone who's been through multiple IRS notices, I want to emphasize that you're handling this exactly right by asking for help and not panicking. The CP2000 notice you received is actually one of the more straightforward ones to resolve. Since you've identified the PayPal income as the likely issue, here are your next steps: 1. **Review the proposed changes carefully** - The letter should show exactly how much additional tax, interest, and penalties they're proposing. 2. **Gather your records** - Pull together any documentation about that translation work, including PayPal statements, any business expenses you had, and records of what you actually earned. 3. **Choose your response** - You have three options: - Agree completely (if their numbers match your records) - Partially agree (if you want to claim business deductions they don't know about) - Disagree (if their information is wrong) 4. **Respond by the deadline** - This is crucial. Even if you need more time to gather information, you can request an extension. The good news is that since this appears to be legitimate unreported income rather than an IRS error, the resolution should be straightforward. Just make sure to respond within the timeframe given, and don't let the tax terminology intimidate you - the IRS forms usually have clear instructions for each option.

I've been following this thread and wanted to add some perspective as someone who works in tax preparation. The advice here has been really solid - Miguel, you're absolutely on the right track with identifying that PayPal income as the issue. One thing I'd emphasize is to keep detailed records of your response. When you send in your partial agreement (which I'd recommend given those business expenses), make copies of everything and keep a timeline of when you sent it. The IRS can sometimes be slow to process responses, and having documentation helps if you need to follow up. Also, since English isn't your first language and tax terminology can be confusing even for native speakers, don't hesitate to have someone review your response before you send it. Many community centers and libraries offer free tax help during filing season, and they might still have volunteers available to help review IRS correspondence. The key thing is that you're handling this proactively instead of ignoring it. That puts you way ahead of people who just panic and do nothing. You've got this!

Why is it so hard for the IRS to just communicate clearly?? "We are now processing your return" could mean anything from "we'll deposit your refund tomorrow" to "see you in 3 months bud" 😤

I'm dealing with the exact same situation! Filed in March, forgot my 1095-A, sent it in late April, and have been stuck on that "we have reviewed your return" message for about 4 weeks now. The question marks instead of checkmarks really threw me off at first - I thought something was broken with the website. From what I'm reading here, it sounds like we're all in for a long wait (6-10 weeks seems to be the consensus). The 1095-A really does seem to trigger manual processing that just takes forever. I've been checking WMR obsessively but I guess that's pointless since the bars disappeared. I might try that Claimyr service some of you mentioned - I've called the IRS probably 15 times and never gotten through. Getting an actual timeline from a real person would be such a relief instead of just staring at this vague message every day wondering if there's a problem with my return. Thanks everyone for sharing your experiences - at least now I know this is normal and not just me!

I had the EXACT same timeline. Filed Feb 22, got told to wait 90 days. I didn't take that answer. Called every single day for a week straight until I got someone who actually looked at my file instead of just reading the script. They found that my return was just sitting there waiting for someone to review the documents I'd already sent in. Got my refund 10 days later. Don't just accept the 90-day answer - keep pushing.

I'm dealing with something very similar right now! Filed on February 18th and got the same "wait 90 days" response. What's really frustrating is that I run a seasonal landscaping business and this delay is hitting right when I need to purchase equipment for spring. I've been reading through all these responses and it sounds like there might be more options than what the first representative told you. Has anyone here had success with calling at different times of day to reach different representatives? I'm wondering if the 7 AM strategy mentioned by Ellie Simpson actually works, or if there are other optimal calling times. Also curious about the transcript analysis tools - seems like understanding what codes are actually on your account could help determine the best approach. The cash flow impact is real for small business owners like us. Even if we can't expedite the process, it would be helpful to at least understand what's actually causing the delay versus just getting the standard "wait 90 days" response.