I'm so glad you posted this before sending any money! This is 100% a scam - I've seen these exact same schemes targeting people in our community before. The "pre-approved for $7,500 but need to pay $1,195 first" is a classic red flag that shows up in countless tax relief scams. Here's what's really happening: legitimate tax resolution companies help you work with the IRS on payment plans or settlements, but they don't hold "approved funds" that you can access by paying upfront fees. The IRS doesn't work that way at all. If you're genuinely worried about your tax situation, go straight to IRS.gov and create an online account to see exactly what you actually owe (if anything). From there, you can explore real IRS programs like installment agreements or hardship deferrals directly without paying middlemen. Please report this scam to the FTC at ReportFraud.ftc.gov and file IRS Form 14157. These criminals are specifically targeting people who are already stressed about taxes, and reporting them helps protect others in our community from falling victim to the same scheme. You absolutely made the right call asking here first - that instinct that "something feels off" was spot on!

This is definitely a scam - do not pay them anything! I've been working in tax compliance for over 15 years and these "pay upfront to release approved funds" schemes are unfortunately very common. Here's the reality: the IRS doesn't "pre-approve" specific dollar amounts that get held by third-party companies until you pay release fees. That's complete fiction. Legitimate tax resolution works by helping you negotiate payment plans, offers in compromise, or other arrangements directly with the IRS, but no legitimate company holds "approved relief funds" on your behalf. A few immediate steps you should take: 1. Do NOT respond to any more communications from this company 2. Check your actual tax account status for free at IRS.gov - create an online account to see exactly what you owe 3. If you do owe taxes, you can often set up payment plans directly with the IRS without paying anyone 4. Report this scam to the FTC at ReportFraud.ftc.gov and file IRS Form 14157 The fact that your gut told you "something feels off" was absolutely right. These scammers specifically target people who are stressed about tax issues and make their communications look very official with logos and legal language. You're smart to verify this here first - stick with that instinct and don't send them a penny!

This has been such an informative thread! I'm relatively new to online selling (started about 6 months ago with sports cards and gaming collectibles) and had no idea about most of these shipping deduction details until reading through everyone's experiences here. One thing I'm curious about that I haven't seen mentioned - what about when you use your own car to deliver items locally instead of shipping? I live near a major city and sometimes buyers will ask if they can pick up items locally to save on shipping. When I drive to meet them at a coffee shop or mall, can I deduct that mileage the same way someone mentioned deducting trips to the post office? Also, I've been buying shipping supplies in bulk from Costco to save money - things like bubble mailers, tape, labels, etc. I assume I can deduct these costs, but do I need to track exactly which supplies were used for business vs. any personal use, or is it okay to deduct the full amount if I bought them specifically for my online selling? The new $600 threshold has me scrambling to get organized, but threads like this make it feel much more manageable. Thanks to everyone who's shared their knowledge!

This thread has been incredibly valuable! I've been selling handmade jewelry and crafts online for about a year, but I've been pretty casual about tracking expenses until now. The upcoming changes to the 1099-K reporting really have me motivated to get my act together. One question I haven't seen covered - what about shipping supplies that serve multiple purposes? For example, I buy nice tissue paper and small gift boxes that I use both for packaging my jewelry orders and occasionally for personal gift wrapping. Should I try to estimate what percentage goes to business vs personal use, or is there a simpler way to handle this? Also, I sometimes include small promotional items in my packages like business cards or thank you stickers with my logo. Are these considered shipping/packaging expenses, or do they fall under a different category like advertising? The information everyone has shared here about tools like taxr.ai and services like Claimyr is really helpful too. It sounds like there are actually good resources available to help small sellers navigate this stuff without having to become tax experts ourselves!

dont overthink this. i deposit cash from my side business all the time. just go to the bank with ID, tell them its payment for freelance work, sign the CTR form they give you, and your done. takes like 5 extra minutes. they see this stuff every day.

One thing I haven't seen mentioned yet is to make sure you keep detailed records of this transaction for your own files. Beyond just getting a receipt from your client, document the date, method of payment, what services were provided, and maybe even take a photo of the cash before depositing (sounds paranoid but it's good documentation). Also, if this client is going to continue paying you large amounts, you might want to consider asking them to get a cashier's check instead of cash for future payments. It's safer for both of you to transport and creates a cleaner paper trail. Banks are much more comfortable with large cashier's checks than large amounts of cash. For tax purposes, just make sure you're setting aside the appropriate amount for taxes since this is self-employment income. The IRS will expect their cut regardless of how you were paid!

I switched from H&R Block to an EA two years ago and couldn't be happier with the decision. I was in a similar boat - regular job plus a consulting side business that was growing, along with some stock investments. At H&R Block, I felt like I was just another number. The preparer would input my information but never really explored potential savings opportunities. When I asked about deductions for my home office or business travel, I got generic responses that didn't really apply to my specific situation. My EA charges about $200 more than H&R Block did, but the value I get is incredible. First year alone, they identified $2,400 in additional deductions - proper home office calculations, business meal deductions I didn't know I qualified for, and equipment depreciation schedules that H&R Block never mentioned. But the real game-changer has been the ongoing relationship. My EA emails me quarterly with reminders about estimated payments and tax planning opportunities. They helped me restructure how I handle business expenses and even advised on the timing of some investment sales to minimize capital gains impact. The expertise difference is night and day. My EA can actually explain the reasoning behind every deduction and helps me plan moves throughout the year to optimize my tax situation. With H&R Block, I was always reactive - just bringing in my documents and hoping they got it right. For anyone with a business component to their taxes, I'd definitely recommend making the switch.

Great thread! I'm also considering making the switch from H&R Block. Reading everyone's experiences really highlights how much value a good EA can provide beyond just filling out forms. One thing I'm curious about - for those who switched, how did you find your EA? Did you go through the IRS directory, get referrals, or use another method? I want to make sure I find someone with experience in small business situations like mine (freelance graphic design work plus rental property). Also, when you first met with your EA, what questions did you ask to evaluate whether they were a good fit? I don't want to make the same mistake of ending up with someone who just goes through the motions, even if they have better credentials than H&R Block preparers.

I just went through this exact situation about 2 months ago! The stress and confusion you're feeling is completely understandable - getting a lien notice when you think you're doing everything right is terrifying. Here's what I learned from my experience: The IRS collections department and the installment agreement department don't sync up in real time. My payment plan was active and I had been making payments for 4 months, but I still got a lien notice because their automated system had flagged my account before my payment plan was fully processed across all departments. The good news is this is actually a very common issue and it's usually resolved pretty easily once you get the right person on the phone. I called the specific number on my lien notice (this is key - don't use the general IRS number) and was connected to an agent who could immediately see both my payment plan and the lien notice in their system. She explained that there's typically a 30-90 day processing lag between when payment agreements are established and when all their automated collection processes get updated. She was able to place what she called a "collection hold" on my account right there on the call and confirmed that as long as I continued making my scheduled payments, no further collection actions would be taken. Make sure you have your installment agreement confirmation number and payment history ready when you call. The agent was able to verify each of my payments in real time, which gave both of us confidence that everything was properly set up. You're handling this exactly right by staying current on your payments and seeking advice. This should get cleared up once you speak with someone directly - don't let it stress you out too much!

I'm a newcomer to this community but wanted to share that I went through something very similar just last month. The exact same scenario - active payment plan, regular monthly payments being made automatically, then suddenly got a terrifying lien notice in the mail. What really helped me was understanding that this is essentially a "left hand not talking to the right hand" situation within the IRS. The collections system that generates lien notices operates on a different timeline than the payment processing system. So even though your payments are being received and processed correctly, the automated lien process might have already been triggered before your payment plan was fully updated across all their systems. I ended up calling the number directly on the lien notice (definitely don't use the main IRS line - you'll get transferred around forever). The agent was able to see my entire payment history and confirmed that my installment agreement was active and in good standing. She immediately placed a hold on any further collection actions and assured me that as long as I continued making my scheduled payments, there would be no issues. The whole call took about 30 minutes, and honestly the agent was much more helpful and understanding than I expected. She even explained that this timing mismatch happens frequently, especially during busy periods when there are processing delays between departments. My advice: call that specific number, have your payment confirmation details ready, and don't stress too much about it. You're clearly being responsible about your payments, and this sounds like a textbook case of IRS system timing issues rather than anything you did wrong.