How do you return an IRS check properly? Do you just write "VOID" on it and mail it back, or is there a specific process to follow?

There's a specific process. You should mail the check back to the IRS location listed in the instructions that came with it (or if no instructions, to the IRS office that services your area). Include a brief letter explaining why you're returning it. Don't write VOID on the check - send it back uncashed exactly as you received it. Include your taxpayer info (name, address, SSN) and phone number in your letter. Send it certified mail so you have proof you returned it. The IRS website has instructions for returning erroneous refunds - search for "returning erroneous refund" on IRS.gov.

I second this! Transcript is the fastest way to see what's happening. My cousin got a surprise refund last year, and the transcript showed someone had filed an amended return with her info. Turned out to be identity theft.

Do you know if Vanguard's Solo 401k has similar fee structure to Fidelity? I've heard Vanguard has good low-cost index funds but wasn't sure about their 401k admin fees for small businesses.

Vanguard does have a similar fee structure with no setup or annual maintenance fees, and they definitely have excellent low-cost index funds. The main difference I found was that Fidelity allowed me to invest in a wider range of options including individual stocks within the Solo 401k, while Vanguard limited me to their funds. Both are solid choices though. The key is to avoid the providers that charge $200+ annual administration fees or have costly setup fees. Those can really eat into your returns over time, especially when you're just starting out with your retirement savings.

That's a really good point I hadn't considered. I don't have immediate plans to hire employees, but it's definitely possible in the next 2-3 years. So if I understand correctly, once I hire employees, I'd need to either: 1. Convert my Solo 401k to a regular 401k with all the additional compliance requirements 2. Or with a SEP IRA, I'd need to contribute the same percentage for employees as I take for myself Is there a clear better option between those two scenarios?

Would love to see that spreadsheet! Does it handle different recovery periods (27.5 vs 39 year) and mid-quarter convention too?

Yes, it handles both 27.5 and 39-year recovery periods for real property. It also has a section for mid-quarter convention that I use for equipment and other business assets. I designed it to be pretty flexible where you just input the property type, cost basis, placed in service date, and disposal date. It automatically determines the right convention and calculates both the regular annual depreciation and any partial year amounts. I've found it matches up with what my accountant calculates manually.

Pub 946 is technically correct but extremely difficult to follow. I tried using those worksheets last year and still ended up making errors. The exampels they give never quite match my situation exactly.

That's a good point - I did file a mail forwarding request with USPS but maybe the IRS notice didn't get forwarded correctly. I'm friendly with the new tenants so I could ask them to check if anything came for me. Any idea what these verification notices usually look like so I can tell them what to look for? And if they don't find anything, is there a way to request a copy of whatever notice was sent?

The identity verification letters are usually pretty obvious - they come in IRS envelopes and typically have "Action Required" or something similar printed on them. They're letter 5071C, 5747C, or 5447C usually. If your new tenants can't find it, you can request a copy of the notice by calling the IRS or checking your online account. If it's an identity verification issue, you might be able to complete the verification online through the Identity Verification Service without the original letter. Just go to the IRS website and search for ID verify. You'll need info from previous tax returns, so have that handy!

This actually works! My brother had a similar issue and after contacting his congressman's office, his refund was processed within 3 weeks. They have special liaisons that work directly with the IRS.

Do you know approximately how much CAAs typically charge? And do they actually speed up the IRS processing time or just the document verification part? I'm trying to decide if it's worth the extra cost.

CAAs typically charge between $50-$300 depending on your location and the complexity of your situation. They don't actually speed up the IRS processing time for issuing the ITIN itself, but they eliminate a huge bottleneck in the process - the document verification stage. When you apply on your own, the IRS has to verify all your identity documents before even starting to process the ITIN application, which can add weeks. CAAs are pre-authorized to do this verification, so your application enters the IRS system at a more advanced stage. Another benefit is that you keep your original documents, which reduces risk and stress.

I did exactly this last year. You can write "ITIN Applied For" on your tax forms and file them with your W-7 application. Once the IRS processes your ITIN application, they'll associate the number with your already-filed return. Just make sure to keep copies of EVERYTHING.