I'm curious about the timeline here...when did you file your original return and how long do you typically have to amend? My tax guy always says "don't worry about small stuff" but reading these comments has me wondering if that's good advice.

I went through this exact same situation a couple years ago with a part-time retail job I'd forgotten about. The amount was similar to yours - around $1,100. I was tempted to just ignore it since it seemed so small, but I'm really glad I didn't. Here's what I learned: the IRS matching system is pretty sophisticated. They get copies of all W-2s and 1099s, and their computers automatically flag when reported income doesn't match what employers submitted. You'll likely get a CP2000 notice in 12-18 months asking about the discrepancy, and by then you'll owe penalties and interest on top of the additional tax. Filing the 1040-X now while it's still voluntary shows good faith and typically results in minimal or no penalties. Plus, if they withheld any federal taxes from your paychecks (which many part-time jobs do), you might actually end up with a small additional refund rather than owing money. The amended return process isn't as scary as it sounds - just recalculate your tax with the additional income included and submit the form. Much better to handle it proactively than wait for the IRS to find it themselves!

This thread has been incredibly helpful! I'm dealing with a very similar situation with my web design business. I started as a sole prop, got an EIN for client W9s, then formed an LLC but kept it as a disregarded entity. PayPal required the LLC's EIN for their business account setup, so now I have two EINs just like the OP. Reading through all these responses, it sounds like the consensus is pretty clear - keep using the sole prop EIN on tax forms and W9s, and don't worry about the 1099-K having the different EIN. The explanatory statement approach mentioned by several people here seems like the smart way to handle it. One thing I'm curious about though - has anyone actually had the IRS question or audit them specifically because of this EIN mismatch situation? All the advice here makes sense logically, but I'm wondering if there are any real-world examples of this causing problems down the road, or if it really is as straightforward as everyone is saying. Also, for those who mentioned contacting the IRS directly about this - did you call the general taxpayer assistance line, or is there a specific department that handles business EIN questions?

I've been through this exact same scenario with my consulting LLC and can confirm what others have said here - you're absolutely on the right track with your thinking! The key thing to remember is that even though you're operating as an LLC, the IRS still sees you as a sole proprietor for tax purposes since it's a disregarded entity. So yes, continue using your original sole prop EIN (11-1111111) on your Schedule C and any W9 forms you fill out. When that 1099-K comes in from Square with your LLC's EIN (22-2222222), just report that income on your Schedule C like any other business income. The IRS won't have any issues with this - their systems can cross-reference both EINs to your SSN. I'd definitely echo the advice about including an explanatory statement with your tax return. Something simple like: "Taxpayer operates [LLC Name] as a single-member LLC taxed as a sole proprietorship. Income reported on 1099-K forms under EIN 22-2222222 is included in Schedule C business income reported under EIN 11-1111111." This just gives the IRS a clear paper trail if anyone ever reviews your return. The situation you described with Square requiring the LLC's EIN is super common - payment processors often have strict verification requirements that don't align perfectly with tax reporting rules. But that's totally fine as long as you're consistent on the tax side of things. You're definitely not in a "paperwork mess" - this is actually a pretty standard situation that lots of single-member LLC owners deal with!

I went through this exact thing last year. The timing is weird for freshmen because you're paying in one tax year for classes that start in the next tax year. Just make sure when you file your taxes that you only claim expenses you ACTUALLY PAID in the tax year you're filing for. If you paid in Dec 2024, you claim on 2024 taxes. If you paid in Jan 2025, you claim on 2025 taxes. The IRS doesn't care about when classes start, just when the money left your bank account. Keep ALL receipts!!! Good luck with freshman year btw!

I'm actually going through this same situation right now! Called my university's financial aid office three times and kept getting the runaround about the 1098-T form. Super frustrating when you're trying to be responsible about filing taxes. What I ended up doing was going directly to the student accounts/billing office instead of financial aid. They were way more helpful and printed out an official payment summary that shows all my qualified education expenses for the tax year. It has the payment dates, amounts, and breaks down tuition vs fees vs other costs. The billing office clerk told me tons of freshmen come in asking for this exact document for tax purposes, so they're totally used to it. She said the IRS accepts these payment summaries as documentation for education credits when the 1098-T isn't available yet. Also heads up - make sure you're only claiming expenses that were actually required by your school. Things like parking passes and meal plans usually don't qualify for AOTC, but tuition, mandatory enrollment fees, and required textbooks/supplies do. The payment summary from billing should help you separate what counts vs what doesn't. Hope this helps and good luck with your first year!

This is such a relief to read! I filed on 2/13 and have been stuck with a 570 code for about 3 weeks now - no 571 yet and no letter, but seeing your success story gives me so much hope that movement is coming soon. I've been checking WMR religiously (sometimes multiple times a day, not gonna lie) but after reading everyone's advice here about Friday morning transcript updates being more reliable, I'm definitely switching my approach. The daily disappointment was really starting to wear on me. What really gives me confidence is hearing that you went through this exact same thing last year when you first moved to the US. It shows that even when the process feels completely random and frustrating, the system does eventually work. I'm also an immigrant and sometimes the IRS processes feel so opaque and intimidating, but your story proves that persistence and patience really do pay off. I need my refund for some dental work I've been putting off, so the financial stress of not knowing when it'll arrive is definitely real. But reading your timeline and all these other success stories in the comments gives me hope that I won't have to wait much longer. Congratulations on finally getting your DDD! April 10th is right around the corner. Thanks for taking the time to share this update - it means more than you know to those of us still in the waiting game! 🙏

Thank you so much for sharing this Giovanni! I filed on 2/28 and just received my 571 code yesterday after being on hold for about 2 weeks. Reading your timeline gives me incredible hope - going from the 60-day letter to a DDD in just 13 days is amazing! I haven't gotten my 60-day letter yet but based on everyone's experiences here, it sounds like it might be coming soon. I've been checking WMR obsessively (guilty as charged!) but after reading all these comments about Friday morning transcript updates being more reliable, I'm definitely changing my strategy. The uncertainty is honestly the hardest part - I need my refund to help with my daughter's college tuition payment that's due next month, and not knowing if it'll be next week or weeks from now makes financial planning impossible. But seeing your success story and all the other positive experiences shared in this thread gives me so much confidence that the 571 code really is the breakthrough moment. Your mention of going through this same process when you first moved to the US really resonates with me too. It's reassuring to know that even repeat experiences can resolve quickly and that the system does work, even when it feels like it's taking forever. Thanks for taking the time to post this update and encourage others - it means everything to those of us still waiting! 🙏

Don't forget that your state board of accountancy or tax preparer oversight board might also be appropriate places to report this, especially if the preparer has state credentials. Some states take a more active approach to preparer misconduct than the federal system.

As someone who's been through a similar ethical dilemma, I want to emphasize that you absolutely have both the legal and moral obligation to report this. The fact that you discovered systematic fraud puts you in a position where inaction could potentially make you complicit. A few practical points from my experience: First, document everything meticulously before you report - dates, client interactions, specific examples of the fraudulent Schedule C entries, and any conversations about this issue. This documentation will be crucial if the IRS investigates. Second, consider that your colleague's actions aren't just harming the tax system - they're putting those clients at serious risk. When the IRS eventually catches this pattern (and they will), those clients could face severe penalties, interest, and potential criminal charges. By reporting now, you're potentially protecting future victims. Regarding your concerns about management and workplace dynamics - remember that if your employer retaliates against you for reporting known fraud, they're opening themselves up to significant legal liability. Most reputable tax firms would rather address the problem than risk becoming complicit in ongoing fraud. The integrity of your EA credentials and the entire tax profession depends on practitioners like you taking these difficult stands. You're doing the right thing by considering this report, even though it's uncomfortable.