Great advice from everyone here! I wanted to add one thing that helped me tremendously when I started my vintage vinyl side business - keeping a dedicated business bank account and credit card. It makes tracking so much easier come tax time. Even though you're just starting out, separating your personal and business finances will save you hours of sorting through transactions later. Use the business account/card for ALL business expenses - inventory purchases, booth fees, supplies, gas for sourcing trips, everything. Then your bank statements become a perfect record of your business activity. Also, consider getting a simple bookkeeping app like QuickBooks Self-Employed or even just a spreadsheet template. I track every purchase with photos of receipts and notes about what I bought and where. When tax time comes, everything is already categorized and ready to go. The few extra minutes each week saves massive headaches in April! One more tip - start building relationships with other vendors at your markets. They're often happy to share tax strategies and might even refer customers to you. The vintage community is surprisingly supportive once you become a regular face at the markets.

One thing I haven't seen mentioned yet is the importance of keeping records for at least 3-7 years after filing. The IRS can audit returns up to 3 years after filing (6 years if you underreport income by 25% or more), so keep all your receipts, mileage logs, inventory records, and bank statements organized and accessible. I'd also recommend setting up a simple filing system now - either physical folders or digital scans organized by year and category (inventory purchases, business expenses, market fees, etc.). It seems like extra work when you're busy sourcing and selling, but trust me, having everything organized will save you massive stress if you ever get audited or just need to reference old records for tax planning. Since you're tracking sales through Square, make sure you're downloading and backing up those reports regularly. Payment processors can have data retention limits, and you don't want to lose months of sales records because you didn't download them in time. Also consider joining your local small business association or vintage reseller groups - they often have tax workshops specifically for small business owners that can be incredibly helpful for staying current on tax law changes that affect resellers.

Has anyone used a Certified Acceptance Agent (CAA) for their ITIN application? After my first rejection, I went to a local CAA and they handled everything. Worth the fee since they verified my documents on the spot and I didn't have to mail my original passport. Might be worth looking into if you're reapplying.

I went through this exact same situation last year! The key thing to understand is that when they say "we'll process your return without an ITIN," they mean they'll accept it as filed and it counts toward your filing deadline, but they won't issue any refund until you have a valid ITIN. For your next steps: carefully review your CP567 notice to see if it gives any hints about what was missing. Common issues include documents not being properly certified, missing signatures, or incomplete Form W-7. When you reapply, make sure to include a complete copy of your original tax return - this helps them match everything up in their system. One tip that saved me time: if your rejection notice is vague about what's missing, try calling the ITIN hotline at 1-800-908-9982. The wait times are brutal, but if you can get through, they can sometimes tell you exactly what documentation issue caused the rejection. Good luck with your reapplication!

For future reference, always schedule tax payments at least 2-3 days after you expect to have the funds. The IRS doesn't actually care what day you schedule it as long as it's by the due date. Better safe than sorry!!!

I've been in this exact situation before and it's so stressful! One thing that helped me was calling the IRS directly to see if I could change the withdrawal date. If you call early in the morning (like right when they open), you might have better luck getting through. The automated system lets you modify scheduled payments up to 2 business days before the withdrawal date in some cases. Also, even if your paycheck and the IRS withdrawal are scheduled for the same day, banks usually process direct deposits (like paychecks) in the early morning hours before they process outgoing ACH withdrawals. So there's a decent chance your paycheck will hit first, but it's definitely not guaranteed and varies by bank. If you can change the date even by one day, I'd highly recommend it for peace of mind!

I'm going through the exact same thing right now! Got my refund in April, then this 60-day letter shows up in my mailbox yesterday. My first thought was "wait, didn't they already approve everything when they sent my money?" Reading through everyone's experiences here is actually making me feel a lot better. It sounds like this is way more common than I realized, and most of the time it's just their systems not talking to each other properly. I checked my transcript online like someone suggested and everything looks totally normal there too. I think I'm going to take the advice about not panicking but keeping good records. I'll hold onto the letter and check my transcript every couple weeks to see if anything changes. If I don't hear anything else in the next month or so, I might try calling the Taxpayer Advocate Service just to see if they can give me any more context. Thanks everyone for sharing your stories - it's really helpful to know I'm not the only one dealing with this confusing situation!

I just wanted to chime in as someone who works in tax preparation - this situation is actually incredibly normal, especially over the past few years. The IRS has multiple processing systems that don't always communicate in real-time, which is why you can receive your refund while a separate review process is still pending. The 60-day letter is essentially a "we need more time" notice that gets automatically generated when they can't complete a review within their standard timeframes. It doesn't mean there's necessarily a problem - it's more like them saying "we're backed up and need to extend our deadline." Since you've already received your refund and your transcript looks normal, this is likely just administrative. The fact that they processed and approved your refund is actually a good indicator that your return was filed correctly. Keep the letter for your records, continue monitoring your transcript, and try not to stress about it. Most of these cases resolve with either no further action needed or a simple request for documentation that's easily provided. If you're really anxious about it, you could contact the Taxpayer Advocate Service for peace of mind, but honestly, what you're describing sounds like a very routine processing delay rather than anything to be concerned about.

Has anyone dealt with Form 8833? My accountant is saying I need to file this to claim treaty benefits for the step-up basis on property I sold after immigration. Is this really necessary?

This is exactly the kind of situation where having proper documentation from day one of your US residency is crucial. I went through something similar when I moved from the UK with both property and investment accounts. One thing I'd add to the excellent advice already given - make sure you also document any improvements or renovations you made to the property during your ownership, even before becoming a US resident. While you get the step-up basis to fair market value on your residency date, any additional improvements after that date can be added to your basis as well. Also, keep in mind that different states might have different rules for how they treat this situation, so if you're in a state with income tax, you'll want to check their specific requirements too. Some states don't automatically follow the federal step-up basis rules. The $5,000 gain you're looking at is definitely manageable tax-wise, especially compared to what it could have been! Just make sure you have all your documentation organized - the appraisal, the sale documents, and any records showing the timeline of your residency status change.