Has anyone else noticed that ALL the tax sites seem to crash more often nowadays? I remember when you could file without all these technical glitches. Last year TaxAct kept logging me out mid-session and I lost data twice. This year I'm trying Free Tax USA and having similar issues.

I experienced something similar with Free Tax USA last month! The site was completely unresponsive for about 2 days, but everything was still processing normally on their end. What really helped me was calling their support line at 1-800-585-1040 early in the morning (around 7 AM) when wait times were shorter. The customer service rep was able to confirm my payment schedule and even sent me a new email confirmation while I was on the phone. They explained that when their website goes down, it's usually just the front-end interface - all the backend payment processing and IRS submissions continue to work normally. Also, if you're really stressed about the payment timing, you can always make a manual payment directly to the IRS using their Direct Pay system as a backup. That way you know for certain your payment went through, and if Free Tax USA's automatic payment also processes, the IRS will just send you a refund for the overpayment.

I've been through this exact scenario twice now - once in 2019 and again in 2022 while on CNC status. Both times they took my full refund despite the hardship designation. The key thing to understand is that CNC status only stops "enforced collection actions" like levies, wage garnishments, and bank seizures. Refund offsets are classified as "administrative collections" and happen automatically through the Bureau of the Fiscal Service before your return is even fully processed by the IRS. What really helped me was calling the IRS Collections department directly (not the main number) at 1-800-829-7650 and asking them to put a notation on my account about my specific hardship circumstances. While they couldn't stop the offset, having that documentation on file made it easier when I later requested an Offset Bypass Refund for the following year when I was facing eviction. The OBR process is incredibly strict - you need proof of imminent shutoff notices or eviction papers dated within 30 days - but it's worth knowing about if your situation gets dire. Also, definitely consider what others have mentioned about adjusting your withholdings. I now claim enough allowances to break even or owe slightly, which has been a game-changer for my monthly cash flow.

I went through this exact situation in 2023 and can unfortunately confirm that CNC status won't protect your refund. I was granted CNC in August 2022 due to job loss, but when I filed my 2022 return in February 2023, my entire $1,200 refund was offset against my 2019 tax debt. The really frustrating part is that the CNC letter makes it sound like collections are paused, but refund offsets apparently don't count as "active collection." What I learned from calling the IRS multiple times is that the offset happens automatically through Treasury's computer systems before your return even gets to an actual person at the IRS. It's essentially built into their processing pipeline. The agent told me that CNC only stops them from actively pursuing levies, garnishments, or sending collection letters - but taking money you're already giving them (your refund) is considered fair game. My advice would be to file early if you think you might qualify for an Offset Bypass Refund due to immediate hardship, and definitely consider adjusting your withholdings for next year so there's no refund to take. I know it's not the answer you want to hear, but at least you can plan around it.

11 Quick question about this MLP situation - if I do end up with a small amount of UBTI in my retirement account from an MLP (like $200), do I need to report it anywhere or only if it exceeds the $1000 threshold?

8 This is a great discussion that highlights an important distinction many investors miss. For your specific situation with day trading MLPs in your Roth IRA, you're correct that you don't need to report anything since you didn't receive distributions and only generated capital gains. One thing to add: even if you do receive a K-1 form in the mail (which happens sometimes even for short-term holdings), look specifically at Box 20 Code V for any UBTI amounts. If it's blank or shows zero, you're definitely in the clear. The custodian of your Roth IRA should also be tracking any UBTI, but it's good to understand this yourself. For future reference, if you want MLP exposure without the tax complications, consider energy sector ETFs like XLE or pipeline-focused ETFs like AMLP - these give you similar exposure without the K-1 forms and UBTI concerns in retirement accounts.

I'm reading through this thread as someone who's been in a very similar situation, and I want to add a few things that helped me when I was unemployed and owed the IRS money. First, don't underestimate the power of calling the IRS directly and explaining your unemployment situation in detail. I know it's intimidating, but when I finally got through (yes, it took multiple attempts), the agent was actually very understanding. They walked me through options I didn't even know existed and helped me figure out which one made the most sense for my specific situation. Second, if you do end up setting up a payment plan, ask about penalty abatement right away. Many people don't realize you can request this separately, and unemployment definitely qualifies as reasonable cause. I got about $400 in penalties waived just by asking and providing documentation of my job loss. Third, once you do find work again, consider opening a separate savings account specifically for taxes if you plan to do any freelance or gig work. I learned this lesson the hard way, but now I automatically transfer 30% of any 1099 income into a "tax account" that I don't touch. It's made tax season so much less stressful. The anxiety you're feeling is completely normal - I was losing sleep over a $2,400 tax bill when I was unemployed. But there really are solutions, and the IRS is more willing to work with people than most of us expect. You're already on the right track by seeking advice and being proactive about it!

I'm so glad I found this thread! I'm dealing with almost the exact same situation - unemployed since January and just discovered I owe $2,400 from some freelance work I did last year. The stress has been keeping me up at night. Reading through everyone's experiences has been incredibly helpful and reassuring. I had no idea there were so many options available beyond just "pay it all or face consequences." The Currently Not Collectible status sounds like it might be perfect for my situation while I'm job hunting. One thing I want to add that helped me when I was researching this - make sure to check if you qualify for any earned income tax credit or other credits you might have missed. Sometimes people in tough financial situations overlook credits they're entitled to, which could reduce what you owe. Also, I called my local VITA (Volunteer Income Tax Assistance) program and they offered to review my return for free to make sure I didn't miss any deductions from my freelance work. It's worth double-checking before you commit to owing the full amount. Thank you to everyone who shared their stories here - knowing that so many people have successfully worked through this exact situation has given me hope that I can figure this out too. This community has been a lifeline during what felt like an impossible situation!

22 Does anyone know if the tax treatment changes if the trust becomes irrevocable after one spouse dies? We set up our trust that way and I'm trying to plan ahead.

Just wanted to add another perspective on this - I've been managing a revocable trust for about 3 years now and can confirm everything mentioned here about the tax treatment. One additional tip: keep really good records of which assets are in the trust versus your personal name, especially if you have similar investments in both. I made the mistake of not clearly tracking this in year one and it created confusion when I got multiple 1099s. Even though the tax treatment is the same (everything flows to your personal return), having clear records makes tax prep much smoother and helps if you ever get questioned by the IRS about asset ownership. Also, don't forget that when you do your annual trust review with your attorney, ask them to confirm the tax ID numbers being used by all your financial institutions. I discovered one of my banks was still using an old EIN instead of my SSN, which could have caused reporting issues down the road.