Has anyone had experience dealing with functional currency elections under Section 985 in connection with this issue? Wondering if making that election would simplify the filing process for future years even though it wouldn't help with the past unfiled returns.

I've dealt with this exact situation multiple times with foreign clients who had unfiled 1120F returns. The M-1 adjustment approach is definitely the way to go for these currency translation differences. One thing I'd add is to be very careful about your exchange rate sources and document them thoroughly. I always use the Federal Reserve's daily exchange rates and create a detailed memo explaining the methodology - which rates were used for which items and why. This becomes crucial if you're ever questioned during an exam. Also, since you're dealing with multiple years of unfiled returns, consider whether you need to address any potential penalties under the reasonable cause provisions. The IRS tends to be more understanding when there's a legitimate business reason for the delay and you're making a good faith effort to comply correctly.

I see a lot of detailed responses here already but wanted to add that timing matters too. If you formally dissolved your sole proprietorship and formed the LLC as a completely separate entity with new EIN, business accounts, etc., you might have a stronger case for treating it as a new business eligible for startup costs rather than just organizational costs. Did you completely close out the sole prop and start fresh, or was it more of a conversion? That distinction can matter for how the IRS views it.

That's exactly the right approach, Khalil! Since you kept the same EIN and it's a single-member LLC taxed as a disregarded entity, the IRS will definitely view this as a continuation of your existing business rather than a startup. Your $6,700 in formation costs should be treated as organizational expenses under Section 248. You can deduct $5,000 immediately and amortize the remaining $1,700 over 15 years (about $113 annually). Make sure to keep detailed records separating the LLC formation costs (legal fees, state filing fees, operating agreement drafting) from any regular business expenses you might have incurred during the transition. One tip: if you had any costs related to transferring assets from the sole prop to the LLC (like updating contracts or transferring licenses), those might be treated differently than the pure organizational costs, so keep those receipts separate as well.

Is anyone seeing different estimated refund amounts between Credit Karma and the IRS Where's My Refund page? CK showed I should get $2,457 but the WMR tool says I'm getting $2,403. Not a huge difference but still concerning. Return was accepted Feb 10th and still processing.

I'm in a very similar situation - filed through Credit Karma on February 2nd, accepted February 9th, and still getting the "still being processed" message. It's been over 3 weeks now and I'm getting pretty anxious too, especially since I also need the money for an unexpected expense. What's frustrating is that Credit Karma estimated my refund at $3,124 but when I finally got through to check with the IRS, they said it would be $3,089. Not a huge difference but still makes me wonder what else might be off. I've been checking the Where's My Refund tool obsessively (probably not helping my stress levels) but it's the same generic message every time. At this point I'm just hoping it shows up in the next week or two. The uncertainty is the worst part - I can handle waiting if I know there's a timeline, but this limbo is killing me. Thanks for posting this - at least I know I'm not the only Credit Karma filer dealing with these delays!

Mine just hit my account!!! I had the same DDD of 2/24 with H&R Block and was getting so worried! I literally just checked my account after obsessively refreshing all day and it's there! I'm so relieved! I was starting to think something had gone wrong with my return. Check your accounts now - they might be processing a batch right now!

Just wanted to share an update for anyone still waiting! I had the same DDD of 2/24 with H&R Block and mine finally showed up this morning around 6:30 AM. Based on what I'm seeing here and from talking to others, it looks like H&R Block is definitely processing these in waves rather than all at once like they used to. For what it's worth, I used the Refund Transfer option (where they take fees out of the refund) and bank with a smaller regional credit union. The timing seems pretty random this year - some people got theirs days early, others right on the DDD, and a few are still waiting even past their date. @Zoe - since you need those funds for your flight next week, you might want to call H&R Block directly with your confirmation number. They can sometimes see if there are any holds or processing issues on their end. Also, if you're really in a pinch, some banks will provide a provisional credit if you can show them the DDD documentation, though that varies by institution. Hope this helps ease some anxiety for everyone still refreshing their accounts!

16 Has anyone else noticed that Capital One's tax document system is really confusing? I had to click through like 4 different menus to find my tax forms. They're under Account Services > Tax Documents > View Tax Documents, not under Statements where you'd logically expect them!

Just wanted to share my experience as someone who dealt with this exact same issue last year. I had a similar situation with a different bank where my 1099-INT never arrived, and I learned that you absolutely need to report that interest income regardless of whether you received the form or not. Since you mentioned you found $84 in interest on your statements, that's definitely reportable income. The IRS expects you to report all interest earned, even if the bank fails to send you the proper documentation. I'd recommend calling Capital One first to see if they can provide the 1099-INT or at least confirm the exact amount, but don't let that delay your tax filing if you're confident in the $84 figure from your statements. One thing that helped me was keeping screenshots of my online statements showing the interest earned, just in case there were any questions later. The IRS generally appreciates taxpayers who make good faith efforts to report all their income accurately, even when dealing with missing paperwork.