I'm dealing with the exact same situation! Filed on April 13th and have been staring at that "processing delay" message for weeks now. My transcript is completely blank too, which is honestly making me more anxious than if it showed something - at least then I'd know they're working on it. Reading through everyone's experiences here has been really reassuring though. It sounds like this is just how things are going this year unfortunately. I claimed EIC and Child Tax Credit too, so that probably explains the extra delay based on what people are saying. I think I'm going to try the early morning calling strategy - seems like Tuesday-Thursday around 7am ET is the sweet spot. If that doesn't work, those callback services some of you mentioned sound like they might be worth looking into. At this point I just want to talk to an actual person who can tell me if there's a real issue or if I'm just stuck in the normal backup. Thanks everyone for sharing your stories - it really helps to know we're all going through this nightmare together! Hopefully we all see some movement soon. The IRS really needs to get their systems updated for next year. 🤞

I'm going through the exact same thing! Filed April 18th and have been dealing with that frustrating "processing delay" message for over 3 weeks now. My transcript is also completely blank, which is honestly nerve-wracking - you'd think there would be SOME indication they received it. Reading through all these responses has been really helpful though. It sounds like this is unfortunately just the new reality for tax season. Since I also claimed EIC and the Child Tax Credit, that probably explains why mine is taking longer based on what others have shared here. I'm definitely going to try calling early Tuesday morning around 7am ET like some of you suggested. If that doesn't work out, those callback services mentioned in the thread might be worth considering - seems like several people have had good luck actually getting through to speak with someone. It's really reassuring to know so many of us are dealing with this same situation. Makes me feel less like I messed something up on my return and more like the IRS is just completely overwhelmed. Hopefully we all start seeing some movement soon! This waiting game is absolutely brutal but at least we're not alone in it. 🤞

I've been through this exact situation with my uncle's construction business. You're absolutely right to be concerned - based on your description (set schedule, provided tools, assigned tasks), you're clearly an employee, not an independent contractor. The tax difference is substantial. As a 1099 contractor, you'd pay 15.3% in self-employment taxes plus your regular income tax. As a W-2 employee, your brother would pay half of that Social Security/Medicare burden (7.65%), and you'd only pay the other half. That's real money, especially when you're working part-time. I had success approaching my uncle by emphasizing that proper classification protects both of us. The IRS can impose significant penalties on businesses for misclassification - sometimes including back taxes, interest, and fines. I framed it as "let's make sure we're following the rules correctly" rather than accusing him of doing anything wrong. The conversation went much better than I expected. Most family business owners don't misclassify workers maliciously - they often just don't understand the rules. Once my uncle realized the potential risks to his business and the extra tax burden on me, he was happy to fix it. Now I get proper W-2s and don't have to deal with quarterly payments or self-employment tax. Don't let the family relationship stop you from protecting yourself financially. A respectful, fact-based conversation should resolve this quickly.

I've been dealing with a very similar situation at my sister's accounting firm. Like you, I was working set hours (9-5 daily), using her office equipment, and following her specific procedures for client work, but she was planning to give me a 1099. After doing some research, I realized this was a clear case of employee misclassification. The IRS uses a three-factor test: behavioral control, financial control, and the type of relationship. In your case (and mine), the employer controls when, where, and how the work is done - that's textbook employee status. The tax impact is real - you'd be paying about 7.65% more in taxes as a 1099 contractor, plus dealing with quarterly estimated payments. That's money you shouldn't have to pay if you're properly classified as an employee. I approached my sister by focusing on protecting both of us from potential IRS issues. Misclassification penalties can be severe for businesses - they could face back taxes, interest, and substantial fines. I shared the IRS guidelines with her and explained that I wanted to make sure we were both doing everything by the book. She was actually grateful I brought it up once she understood the rules and risks. Now I'm properly classified as a W-2 employee, and we both sleep better knowing everything is compliant. Don't let the family relationship stop you from having this important conversation - approach it as wanting to do things correctly rather than pointing out mistakes.

Has anyone actually calculated how much MORE tax they'll owe with this new withholding system? I'm in the same situation (withholding down from about $12k to $6500) but I'm not sure if that means I'll actually owe more tax or if the previous withholding was too high.

I'm dealing with this exact same issue! My withholding dropped from about $8,200 last year to just $4,800 this year, even though my salary only went up slightly. I was completely panicked when I noticed it because like you, I haven't changed anything on my W-4. After reading through all these responses, it sounds like this is a widespread problem with the new withholding tables. I used the IRS withholding estimator that someone mentioned, and it's showing I'll likely owe around $2,800 when I file. What's really frustrating is that my employer never sent out any communication about these changes. I only discovered it by accident when I was comparing my year-end tax documents. I'm definitely going to contact HR tomorrow to update my W-4 and probably make an estimated payment to avoid penalties. Thanks everyone for sharing your experiences - at least now I know I'm not the only one dealing with this mess!

I went through this exact situation when I moved back to Germany after my J-1 visa ended. One thing that really helped me understand my tax obligations was getting clear on the difference between "tax residency" and "address on file" - they're completely separate things for IRS purposes. The substantial presence test is what determines your tax status, not where your mail goes. Since you've been physically absent from the US for months, you're likely already considered a non-resident alien for the portion of the year after you left, regardless of what address your brokerage has on file. However, I'd strongly recommend updating those addresses sooner rather than later. I delayed updating mine for about 6 months and my brokerage (E*Trade) eventually flagged my account for review when they noticed consistent foreign IP logins. The process wasn't terrible, but it would have been much smoother if I'd been proactive about it. The key forms you'll need are the W-8BEN (to establish your foreign status with financial institutions) and likely a dual-status tax return for this year. Don't forget that while the US may not tax your capital gains as an NRA, Germany definitely will once you're considered a German tax resident - so make sure you understand both sides of the equation! Also, keep detailed records of your departure date and when you established residency abroad. You'll need these for both countries' tax authorities.

I went through almost this exact scenario when I moved back to Singapore after my H1-B expired last year. The stress about tax obligations and account freezes is totally understandable! First, don't panic about the address issue - your tax residency status is determined by physical presence tests, not the address your brokerage has on file. Since you've been physically absent from the US for months, you're likely already considered a non-resident alien (NRA) for tax purposes for the period after you left. That said, you should update your address with your financial institutions sooner rather than later. I was terrified about this too, but most major brokerages (I was with Fidelity) actually have established processes for clients who become non-residents. The key is being proactive - call them, explain your situation, and ask about their non-resident client procedures. You'll likely need to fill out a W-8BEN form and provide some documentation, but it's much better than having them discover the change through IP monitoring and potentially freezing your account. For your investments, as an NRA you generally won't owe US capital gains tax on stock and crypto sales (assuming you don't hit the 183-day presence test), but you will still have 30% withholding on US dividends. However, don't forget about tax obligations in your home country - many countries will tax you on worldwide income once you become their resident, which could include your US investment gains. You'll probably need to file a dual-status return for this tax year, treating part of the year as a US resident and part as NRA. Keep detailed records of your departure date and when you established residency abroad - you'll need this for both countries' tax authorities.

I've been following this thread and wanted to add my perspective as someone who dealt with a similar situation. My cousin owed about $42k to the IRS from a failed restaurant business and we went through this exact decision process last year. We ended up skipping companies like Optima and going straight to a local Enrolled Agent who specialized in tax resolution. Cost us $2,200 total compared to the $5,800 Optima quoted, and the EA was incredibly responsive throughout the 8-month process. She got him on a reasonable payment plan and actually saved more in penalty reductions than we paid in fees. The key thing we learned is that the IRS is actually more reasonable to work with than these companies make it seem. They have standard procedures for payment plans and offers in compromise - it's not some mysterious process that requires special insider knowledge. For your brother-in-law, I'd strongly recommend calling the IRS directly first to see what payment options they offer, then getting quotes from 2-3 local tax professionals before considering any national company. The local professionals we talked to were way more transparent about realistic outcomes and didn't use high-pressure sales tactics.

I've been dealing with tax issues for the past couple years and wanted to share what I learned about the whole industry. The biggest thing is that these national companies like Optima aren't necessarily scams, but they're basically selling you convenience at a premium price. What really opened my eyes was when I called the IRS directly using their Taxpayer Advocate Service. It's completely free and they actually helped me understand my options without any sales pressure. The advocate explained that for most people with straightforward tax debt (even amounts like $38k), the IRS has standard payment plan options that don't require professional help to set up. The reality is that companies like Optima make their money by taking cases that could often be resolved much cheaper through direct IRS contact or local professionals. They're not doing anything magical - they're just familiar with IRS procedures and forms that are publicly available. For your brother-in-law, I'd suggest he start with a free consultation from the Taxpayer Advocate Service (you can find them on the IRS website) to understand his actual options before paying anyone. Then if he does need professional help, compare local EAs or tax attorneys who charge hourly rates instead of the huge upfront fees these national companies demand.