Quick tip that helped me - if you can pay even part of what you owe immediately, do it! Even paying $500-1000 of your balance shows good faith and might make them more willing to work with you on the rest. I was able to get on an installment plan for the remaining balance and they held off on filing the lien.

Don't let this overwhelm you - a Notice of Federal Tax Lien sounds scarier than it actually is in practice! I went through something very similar about 18 months ago when I owed around $4,200 to the IRS after some freelance work complications. The key thing to remember is that the IRS actually WANTS to work with you - they'd rather get their money through a payment plan than go through the hassle of seizing assets. When I called them (after many attempts to get through), the agent was surprisingly understanding and helped me set up a $130/month payment plan. Here's what I wish I'd known earlier: once you're on an approved installment agreement, they typically won't file the lien as long as you keep making your payments on time. Even if they do file it, you can request a lien withdrawal after making just 3 consecutive payments under your agreement. My biggest mistake was waiting so long to contact them. The penalties and interest kept piling up while I was avoiding the situation. Act now - call them first thing Monday morning, explain your job loss situation, and they'll likely be very willing to work with you on affordable monthly payments. You've got this!

Has anyone used a 529 college savings plan for gifts to children? My sister wants to give my kids money for college and we're trying to figure out the best way to handle it.

I went through something very similar last year when my kids received birthday money from their grandparents right before we had some unexpected car repairs. Here's what I learned after consulting with both my bank and a tax professional: The key issue isn't just whether you CAN access the money (since you're the account manager), but whether you SHOULD from a legal standpoint. Even if it's a regular savings account and not a formal UTMA/UGMA custodial account, using money that was specifically gifted to your children for your own expenses creates a potential ethical and legal gray area. What I ended up doing was documenting everything - I wrote up a simple "loan agreement" to myself, noting the amount borrowed, the reason, and the specific repayment date. I also took photos of the account balances before and after. When I repaid the money two months later, I added a small amount of interest as if it had stayed in the account. My tax professional said this approach showed good faith and proper documentation if anyone ever questioned it. The medical bills definitely qualify as a family emergency, which makes it more defensible than using the money for something discretionary. That said, definitely exhaust other options first - payment plans with the medical provider, personal loans, or even a credit card cash advance might be less complicated legally.

This is exactly the kind of timeline I was hoping to see! Filed on 2/16, completed identity verification on 2/27, and just got my 570 code this morning dated 3/29. After reading through everyone's experiences here, I'm feeling much more optimistic about the process. The consistent pattern of receiving the DDD 3-4 days before the 570 date is really encouraging - it seems like once you clear identity verification and see that 570 code appear, you're basically in the home stretch. I've definitely joined the ranks of obsessive transcript checkers too! 😅 There's something oddly comforting about seeing that daily ritual isn't unique to me. Based on all the shared experiences here, it sounds like most of us should see our 846 codes within the next week. Thanks for starting this thread and sharing your timeline - this community has been invaluable for understanding what all these codes actually mean and managing expectations during such a stressful waiting period!

This is so helpful to read! I filed on 2/8, did my identity verification on 2/20, and I'm still waiting for any movement on my transcript. It's been almost a month since filing and I was starting to worry something was wrong. Seeing everyone's timelines here gives me hope that I should see my 570 code appear soon - it looks like there's usually a 2-3 week gap between verification and the code showing up. The pattern of getting the DDD 3-4 days before the 570 date seems really consistent across everyone's experiences. I've already started checking my transcript daily in anticipation! 😅 Happy early birthday btw - what perfect timing that would be if your refund hits right around then! This community has been such a lifesaver for understanding what to expect during this whole process.

Has anyone actually gone through an IRS audit with an S Corp home office deduction including depreciation? Curious what documentation they asked for and how detailed the review was?

This is such a comprehensive discussion! As someone who went through a similar S Corp home office depreciation headache last year, I wanted to add one more consideration that nearly tripped me up. Make sure you're properly coordinating the depreciation method between your personal and S Corp books. I was using MACRS 39-year straight line for the business portion on my personal return, but my S Corp was trying to reimburse me based on a different calculation my bookkeeper had set up. The IRS expects consistency - the depreciation your S Corp reimburses you for should match exactly what you're claiming as a deduction on Schedule E. Also, don't forget about the Section 280A limitations! Even with an accountable plan, you can't deduct home office expenses (including depreciation) that exceed the gross income from the business use of your home. This rarely comes up, but if your S Corp is having a tough year, it could potentially limit your depreciation deduction even if the reimbursement goes through properly. One last tip: consider setting up your accountable plan to reimburse monthly rather than annually. It makes the cash flow smoother and creates a better paper trail for documentation purposes. My CPA said it also makes audits less likely to raise red flags since the transactions look more like regular business operations rather than year-end tax planning moves.

Quick tip from someone who's done this twice: if you're looking to maximize the 12% bracket, consider spreading the donation over multiple years. If you donate the full $68k in one year but can only use $30k due to AGI limits, you might be pushing yourself into a lower bracket in future years when using the carryforward. Sometimes it's more tax-efficient to donate portions of the land over 2-3 years (if the charity is willing). I did this by subdividing my property and donating parcels in consecutive tax years. Saved me thousands in taxes by keeping more income in the 12% bracket each year rather than having one year at super low income and then jumping to 22% bracket in later years.

One important thing to verify with your nature preserve is whether they'll provide you with a contemporaneous written acknowledgment that meets IRS requirements. For donations over $250, you need this acknowledgment that includes a description of the property donated and a statement that no goods or services were provided in exchange (or the value if any were provided). Since this is adjacent land that will be incorporated into their existing preserve, make sure they provide written confirmation that the land will be used exclusively for conservation purposes and won't be sold. This "related use" documentation can be crucial if you're ever audited, as it supports your ability to deduct the full fair market value rather than being limited to your basis. Also, don't forget that you'll need to reduce your basis in the property to zero for tax purposes once you donate it, which shouldn't be an issue given your low $675 basis. The $67,325 difference between your basis and the fair market value won't trigger any immediate tax consequences to you, but it's worth noting for your records.