I might be in the minority, but I actually think the current system makes some economic sense. Interest is basically guaranteed income - you're not taking any real risk with your principal. Capital gains require taking actual risk - your investment could go down in value. The tax code incentivizes risk-taking that can lead to economic growth. When you buy stocks, you're providing capital to businesses that can use it to expand, create jobs, and innovate. Bank deposits, while useful for liquidity in the banking system, don't have the same direct effect on economic productivity. That said, I do think there should be some consideration for small savers, maybe some kind of interest income exemption for the first few thousand dollars.

The tax treatment difference really comes down to risk and economic policy goals. Interest income is essentially "rental income" for your money - the bank pays you a guaranteed rate to use your funds, similar to how a tenant pays rent to use your property. There's virtually no risk of loss, so it's treated like regular income. Capital gains represent appreciation from risk-taking in productive assets. The preferential rate exists partly because: 1) It encourages long-term investment in businesses 2) It accounts for inflation eroding real returns over time 3) It compensates for the liquidity risk of locking up capital However, I do think the system could be more nuanced. Many countries have tiered systems where smaller amounts of interest income get preferential treatment, recognizing that basic savers shouldn't be penalized. A first $1,000-2,000 of annual interest income taxed at capital gains rates might balance the competing policy goals while helping typical savers. The current system works well for encouraging investment, but it does create some unfair outcomes for people who legitimately need safe, liquid savings for short-term goals.

The transcript codes can definitely be confusing! From what I can see, your situation is pretty standard for an amended return. That code 290 dated 10/7/24 is essentially the IRS saying "we plan to finish processing this by October" - but like others mentioned, it could happen sooner. The 810 freeze is just their way of making sure they don't send out the wrong refund amount while they're still reviewing your changes. I'd recommend checking your transcript every Friday (that's when they typically update) and calling the automated line at 1-800-829-1954 to check your refund status. The waiting sucks but your case is definitely in the system and moving forward!

Looking at your transcript timeline, I can see why you're confused about that October date! The sequence actually makes perfect sense though - your amended return (code 977) from June triggered the refund freeze (code 810), and now the IRS has scheduled the final processing for October 7th (code 290). That October date isn't when they'll START working on it, it's their target completion date. The good news is that 20243805 cycle code indicates this is moving through their system normally. I've seen plenty of cases where people got their refunds 2-4 weeks before the projected 290 date once the IRS finished their review. Keep watching for code 846 (refund issued) or any 971 codes (notices) - those will tell you when things are actually wrapping up. The wait is annoying but your case is definitely progressing!

One option nobody mentioned yet - you could use a Print-on-Demand platform that handles tax for you. I use Printful through their Etsy integration, and Etsy collects and remits all the sales tax automatically. I just deal with my income taxes in France, and it's much simpler. The downside is you'll make less profit per item since these platforms take a cut, but the time and stress saved on tax compliance might be worth it when you're starting out.

As someone who went through this exact process last year, I'd highly recommend starting with the basics first. Before diving into tools or services, make sure you understand the fundamental difference between income tax (federal) and sales tax (state-level). For income tax, you'll likely need an ITIN (Individual Taxpayer Identification Number) from the IRS since you're not a US citizen. This lets you file the proper forms like 1040-NR for nonresident aliens. The process takes a few months, so start early. For sales tax, track your sales by state from day one. Most states have economic nexus thresholds around $100K in sales OR 200+ transactions per year. Keep detailed records because once you hit these thresholds, you'll need to register for sales tax permits in those states. Also consider getting a US bank account through services like Wise or Mercury - it makes payments from US customers much smoother and can help with your business legitimacy when dealing with suppliers.

Something similar happened to my brother last year. What finally worked was having his accountant contact the IRS Practitioner Priority Service. This is a special hotline for tax professionals that often gets better results than the regular channels. Since your accountant made the error, they should be willing to help resolve this through their professional channels. My brother's accountant was able to get the IRS to issue a manual refund check after proving the original deposit was an error.

I went through this exact same situation two years ago and it was incredibly stressful. Here's what I learned that might help you: The key is understanding that once the IRS confirms the deposit went to the account number listed on your return, they consider their obligation fulfilled. At that point, it becomes a civil matter between you and whoever received your funds. You mentioned Chase hasn't returned the money - this is actually crucial. If the account exists and is active, the account holder legally has possession of funds that don't belong to them. You may need to take legal action against the account holder directly. I'd recommend: 1. Get written confirmation from the IRS that the refund was deposited to the wrong account due to an error on your return 2. Demand Chase provide you with information about the account holder (they may resist, but you have legal grounds since it involves your money) 3. Consider small claims court against the account holder if they won't return the funds voluntarily In my case, once I threatened legal action against the person whose account received my refund, they cooperated with the bank to return the money. The whole process took about 6 weeks, but I did get my full refund back. Don't give up - $5,400 is worth fighting for, and you do have legal recourse here.

For those with PTPs, remember that these Schedule K-3 requirements are still relatively new and even many tax professionals are confused by them. My approach has been to look at the prior year K-3 (if available) to gauge whether there's likely to be any significant foreign information. If last year's K-3 had minimal or zero foreign information AND your current K-1 has an empty Box 21, that's usually a good indication you can proceed without waiting. Just set a reminder to review the K-3 when it eventually arrives to confirm your decision was correct.

This is a great discussion and really helpful for those of us dealing with PTP K-1/K-3 complications! I'm in a similar situation with two different partnerships - one clearly states no foreign assets like yours, but the other is less clear in their language. One thing I've learned from my CPA is to also check if your partnership issues a Form 8865 (for foreign partnerships) or has any mention of PFIC investments in their annual reports. If there's no mention of these and Box 21 is empty, it's another good indicator that waiting for the K-3 won't provide actionable information. I've decided to follow your approach this year - filing without waiting for the delayed K-3s from partnerships that clearly indicate no foreign tax activity. The stress of extensions just isn't worth it when all indicators point to the K-3 being irrelevant for our tax situations.