Have you had any success with the fax number for ERC claim status inquiries? I tried it a few times but never got any response. Wondering if there's a trick to it or if it's just a black hole like everything else at the IRS these days.

I've had mixed results with the fax system. Out of about 15 status requests I've sent, I only received responses for 4 of them, and those took about 3 weeks to come back. The responses weren't very detailed either - just basic confirmation that the claim was "in process" with no estimated completion date. I've found that calling the IRS (when you can actually get through) gives better information, as agents can see notes in the system about where the claim is in the review process. Some practitioners in my network have reported better success by sending status inquiries through certified mail to the IRS service center where the original claim was filed, but even that's hit or miss.

Yes! I've seen this too. I think they're cracking down after all those sketchy ERC mills that were filing dubious claims. One thing that helped me was sending a detailed cover letter with each amended return that specifically outlines exactly which government orders restricted my client's operations and how those restrictions materially affected business operations. I basically create a roadmap for the IRS reviewer.

But the original poster isn't a rideshare driver - they're just commuting to work. Completely different tax situation. The IRS specifically says regular commuting isn't deductible.

You're right - I missed that they're just commuting. In that case, these expenses wouldn't be deductible. I was thinking about business use which is entirely different. Commuting is always considered personal use by the IRS, no matter how far your workplace is or how necessary your vehicle is to get there. The only exception would be if they have a qualifying home office as their primary place of business and are traveling to client sites.

Insurance settlements for personal vehicles usually aren't taxable unless you end up with a gain. Like if your car was worth $10k but somehow insurance paid you $12k, that $2k difference might be taxable. But it's rare for that to happen since cars usually lose value over time.

Has anyone had experience with Maryland? I filed last week and authorized a direct withdrawal but nothing has happened yet. Starting to wonder if I should contact them or just keep waiting.

Maryland typically takes 3-7 business days to process direct withdrawals, so you're still within the normal timeframe. Their processing times tend to be a bit longer than other states, especially during peak filing season. If you don't see any pending transaction by the end of next week, then I'd recommend contacting them. You can check your return status on the Maryland Comptroller's website using their "Where's My Refund?" tool (it also shows payment status) or call their taxpayer service line at 1-800-MD-TAXES.

You know what, I'm not 100% sure now that you mention it. I think I just went with whatever default date it suggested. I assumed it would be immediate but maybe I did select a specific date without realizing it. I'll need to go back and check my TurboTax submission again. That's a really good point - thanks for bringing that up!

I do get their certificates, but I never thought about them expiring. Do I need to verify them periodically? Most of these nonprofits are local organizations I know pretty well.

Yes, you absolutely need to periodically verify them. Personal relationships don't matter to auditors! In many states, exemption certificates expire after a set period (often 1-5 years depending on the state). I recommend setting up a simple tracking system - even just a spreadsheet - with each nonprofit customer, their certificate number, and expiration date. Then set calendar reminders to request updated certificates. Some states also have online verification systems where you can check if a certificate is still valid. Even in states where certificates don't technically expire, a nonprofit could lose its tax-exempt status, and you'd have no way of knowing unless you verify periodically. If that happens and you continue to make tax-free sales, you're the one who'll be responsible for that uncollected tax.

Smart business approach! We did something similar with our office supply company. The nonprofit discount program brought in so many new customers that it more than made up for the margin reduction. Plus, their ordering is often more predictable than regular retail customers.

Did your CPA suggest you form an LLC or S-Corp? I've heard that can save on self-employment taxes but not sure if it's worth it at my income level (around $70k).

My CPA actually advised against forming an LLC at first since it wouldn't provide tax benefits by itself - it's mainly for liability protection. However, once I hit about $80k consistently, she suggested an S-Corp structure which has saved me thousands in self-employment taxes. At $70k, you're right at the threshold where it might make sense. The basic concept is that with an S-Corp, you pay yourself a "reasonable salary" which is subject to self-employment taxes, but can take the rest as distributions that avoid those taxes. However, there are additional costs like payroll processing and more complex filing requirements. My CPA said generally it doesn't make sense until you're netting at least $60-70k after expenses.

I did exactly this last year! Cost me $125 for the review which was way cheaper than the $350+ for full preparation. The CPA found two mistakes - I had categorized some software subscriptions incorrectly and missed a home office deduction. Saved me about $800 in taxes for a $125 investment.