Has anyone actually been audited by the IRS after doing crypto wash sales? I'm wondering if they might give you extra scrutiny even if it's technically allowed. I'm down about $4k on Ethereum and would love to claim the loss but not if it puts a target on my back.

I've been doing crypto tax loss harvesting for the past two years and can confirm it works as described. The key thing people miss is that you need to be strategic about timing. I typically do a review in November to identify positions that are down, then execute the sales and repurchases in December. One important detail - make sure you're using the same exchange or wallet for the repurchase if possible. It makes record-keeping much cleaner. Also, consider the transaction fees when calculating whether the tax benefit is worth it. On smaller losses, the fees might eat into your savings. I use a simple spreadsheet to track: original purchase date/price, sale date/price, loss amount, repurchase date/price, and new cost basis. This documentation has been sufficient for my tax preparer and gives me confidence if I ever get audited.

I'm confused about Form 8832 that people keep mentioning. If I'm terminating S corp status, wouldn't I just file a revocation statement? Why would I need Form 8832 too?

This thread has been incredibly helpful! I'm dealing with a similar situation where we want to shut down our S corp but weren't sure about the process. Based on what everyone has shared, it sounds like the key distinction is: - Final return = business is completely done/dissolved - Revocation statement = keep business alive but end S status One follow-up question though - if we're going the final return route (actually dissolving), do we need to distribute all assets to shareholders first, or can we check the final return box even if there are still some assets in the company? I'm worried about creating additional tax complications if we don't handle the asset distribution correctly before filing that final return. Also, does anyone know if there's a specific timeframe we need to follow between state dissolution and filing the final federal return? Our state requires a 60-day notice period before dissolution is finalized, so I'm not sure if we should wait for that to complete before filing with the IRS.

Has anyone tried doing both TurboTax and H&R Block remote work in the same season? I'm thinking about applying to both to maximize hours.

I've been working remotely for TurboTax for three seasons now and thought I'd add some perspective on what to expect beyond just the scheduling and bonus structure. One thing that really surprised me was how much you learn about taxes in general - even if you're just doing customer support rather than actual tax preparation. By the end of my first season, I understood tax concepts I never knew existed and it actually helped with my own personal taxes. The workload can be intense during peak season (March-April), but the team support is generally good. Most managers understand that tax season is stressful for everyone and try to be accommodating when possible. A few practical tips if you do get hired: invest in a really comfortable headset since you'll be wearing it for hours, make sure your workspace is quiet (customers can hear background noise), and keep a notebook handy for jotting down common issues you encounter - it'll save you time later when similar situations come up. The work is seasonal but if you do well, they often invite you back the following year, and returning workers typically get first pick of schedules. Overall, it's been a solid way to earn extra income during tax season, just be prepared for some long days once things get busy!

Something important that hasn't been mentioned yet: the timing of your S corp election matters. If you want S corp status from day one of your LLC, you need to file Form 2553 within 2 months and 15 days of forming your LLC. Otherwise, your S corp election won't be effective until the following tax year. As for operating agreements, I use ZenBusiness for my LLC (elected S corp last year), and they provided a template specifically for LLCs with S corp taxation. The main differences were exactly what others mentioned - provisions about proportionate distributions, reasonable compensation requirements, and references to maintaining S corp eligibility. One tip: keep your operating agreement updated whenever your business situation changes. My accountant says this is especially important for S corps since maintaining your election depends on ongoing compliance with the requirements.

Don't forget one important aspect that people overlook: bank accounts and EIN issues when transitioning to S corp status. When you elect S corp taxation for your LLC, your bank accounts and EIN remain the same - you're still the same legal entity. This is actually another reason why the LLC+S corp route is easier than forming a C corp and then electing S corp status. With the latter approach, you'd need new bank accounts, a new EIN, etc. With the LLC approach, you just file the election and modify your operating agreement. For my single-member LLC with S corp election, I just downloaded a template operating agreement specifically for this situation (cost about $50), and it had all the necessary provisions already built in. Way cheaper than hiring an attorney to draft something custom.

I must caution you about one critical aspect of dependent verification audits that many taxpayers don't anticipate: the Correspondence Examination timeline parameters. These audits typically have a 30-day response window from the date of the letter (not from when you receive it). If you fail to submit adequate documentation within this timeframe, the IRS may disallow your dependent-related credits and deductions, potentially resulting in a Statutory Notice of Deficiency (90-day letter). I've observed numerous cases where taxpayers underestimated the timeline requirements and subsequently faced assessment of additional tax, interest accrual from the original filing date, and potential accuracy-related penalties under IRC §6662(a).

Having gone through a dependent verification audit myself in 2022, I can share what worked for me. The IRS accepted these documents for my stepdaughter: birth certificate showing her relationship to my spouse, our marriage certificate establishing my relationship to her, school enrollment records and report cards with our address spanning the full tax year, pediatrician visit summaries showing me as the responsible party, and receipts for clothing, school supplies, and activities I purchased throughout the year. One thing that really helped was creating a chronological timeline document that showed her living with us month by month - school attendance records from September through June were particularly convincing evidence. The whole process took about 10 weeks from when I mailed everything via certified mail until I received their acceptance letter. Make sure to organize everything clearly with tabs and a cover letter explaining each document's relevance.