There's a simple way to check if an extension was actually filed. Call the IRS at the Practitioner Priority Line (1-866-860-4259) and ask for a "tax account transcript" for the tax year in question. The transcript will show exactly when your return was received and if an extension was filed. This is official IRS data that can't be manipulated by your accountant. You can also request it online through the IRS website if you create an account. The transcript will show every transaction with date stamps. If your accountant really filed an extension, it will appear with code "460" on your account transcript.

I'm really sorry you're going through this - it's such a violation of trust when a professional you rely on isn't honest with you. Based on everything you've described, I agree with the other commenters that your accountant appears to be lying. One thing I haven't seen mentioned yet: you should document everything immediately while it's still fresh. Write down all the dates your accountant told you things were filed, save every email and text message, and keep copies of any documents he provided (even the suspicious ones). This documentation will be crucial if you decide to pursue malpractice claims or file complaints with regulatory bodies. Also, since you mentioned this is affecting both federal and state taxes, make sure you're addressing both separately. State tax authorities often have their own penalty abatement programs, and the process might be different from the federal IRS abatement. The $13,000 in penalties is substantial enough that you might want to consult with a tax attorney who specializes in penalty abatement cases. Many offer free consultations and can quickly assess whether you have grounds for both penalty relief and potential recovery from your accountant's errors or omissions insurance. Don't let this drag on any longer - every day those collection notices get more serious, and your options may become more limited.

I work in payroll administration and can confirm that Fed MWT EE is indeed Federal Withholding Tax - Employee portion. This is your federal income tax being withheld based on your W-4 selections. One thing I'd add that others haven't mentioned - if you recently changed your filing status (got married, divorced, had kids, etc.) or your income changed significantly, you might want to review your W-4. A lot of people set it once when they're hired and never look at it again, which can lead to owing money or getting huge refunds. Also, don't feel bad about your HR being unhelpful - unfortunately that's pretty common. Most HR departments handle benefits and policies but aren't trained on the nitty-gritty tax details. The payroll department (if separate) usually knows more about deduction specifics, but even they sometimes just follow whatever the payroll software spits out without fully understanding it.

Just wanted to chime in as someone who was in your exact situation a few months ago! The whole paycheck deduction alphabet soup is so confusing when you're trying to figure out where your money is going. Fed MWT EE is definitely your federal income tax withholding (the "MWT" stands for "withholding tax" and "EE" means employee portion). What helped me understand my paystub better was actually requesting a detailed breakdown from payroll - even though your HR wasn't helpful, sometimes the actual payroll processor (like ADP or Paychex) can provide a legend that explains all their specific abbreviations. Also, since you mentioned being confused about the Medicare/FICA thing - I had the same question! Turns out FICA is like an umbrella term for Social Security AND Medicare taxes combined. Some paystubs show them separately (like your "FED MED EE" for just the Medicare part) while others lump them together under "FICA." You're definitely not paying twice - it's just different ways of displaying the breakdown. One thing that really helped me was keeping track of these deductions for a few pay periods to see the patterns. Once you understand what each abbreviation means, it becomes way easier to spot if something looks off or if your withholdings need adjusting.

Just to add another perspective - I've been running a mobile coffee cart for 3 years and learned this lesson the hard way. We were doing exactly what your owner is doing (using one "safe" higher rate) until we got audited last year. The auditor explained that by consistently overcharging in certain jurisdictions, we were creating a liability because we were collecting more tax than we were remitting to those specific locations. The solution that worked for us was switching to a POS system with automatic location-based tax rates, but we also had to go back and correct our previous filings. It was a pain, but much better than facing penalties. I'd strongly recommend having a conversation with your owner about getting compliant sooner rather than later - mobile food businesses are actually more likely to be audited because we operate across multiple jurisdictions. Also, don't forget about the permit side of things. Most cities require food trucks to have local permits even for one-day events, and those permits often come with specific tax reporting requirements.

This is such a timely discussion! I'm actually dealing with a similar situation with our mobile BBQ business. We operate in 4 different counties and I've been manually tracking which tax rate to use for each location, but it's been a nightmare to manage during busy festival seasons. One thing I learned from our accountant is that you should also keep detailed records of not just WHERE you made each sale, but WHEN. Some jurisdictions have different tax rates that change throughout the year (like temporary local taxes for infrastructure projects), so even the same location might have different rates depending on the date. Also, for anyone considering the GPS-based POS solutions mentioned above - make sure your system can handle situations where you're right on a city boundary. We had issues where our GPS would ping-pong between two tax rates when parked near city limits, which created some confusing receipts for customers until we figured out how to set a manual override. @Sophie Footman - I'd definitely encourage you to push back more firmly with the owner about getting compliant. The "better safe than sorry" approach of using a higher rate everywhere might seem safer, but as others have mentioned, it can actually create more problems in the long run than just doing it correctly from the start.

I'm dealing with this exact situation right now and really appreciate all the detailed responses here! Based on what everyone's shared, I'm leaning toward reaching out to my fund managers first before making a decision. One additional consideration I haven't seen mentioned - if you're expecting a large refund from other sources (like overwithholding from your W-2), you might want to factor in the opportunity cost of that money sitting with the IRS for an extra few months. I ran the numbers on my situation, and even with a conservative investment return, the potential earnings on my refund over 3-4 months would more than cover any amendment fees if something unexpected shows up on the K-1s. That said, the peace of mind from doing it right the first time is probably worth more than a few hundred dollars in potential returns. Plus, some of the horror stories about amendment complications and audit risks that people have shared are making me think twice about rushing it. I'm going to send emails to all my fund managers this week using the template approach that Isabella suggested - asking specifically about income, losses, credits, and foreign investments. If they can confirm zeros across the board, I'll file. If not, I'll wait or file an extension. Thanks everyone for the incredibly helpful insights! This community is amazing for getting real-world perspectives on these tricky tax situations.

As someone who's been through this rodeo with multiple VC investments, I'll add my two cents: definitely reach out to your fund managers, but also prepare for radio silence from some of them. The smaller, earlier-stage funds especially can be pretty unresponsive during tax season since they're usually swamped. Here's what I've learned works best: send a polite but specific email with a clear subject line like "2024 K-1 Tax Information Request - [Your Name]" and give them about a week to respond. If you don't hear back, try calling their main number and asking to speak with whoever handles investor relations or fund administration. The bigger, more established VC funds are usually pretty good about responding to these requests since they deal with them constantly. It's the smaller angel groups and newer funds that can be hit or miss. One thing that's saved me multiple times - if a fund manager tells you "there should be nothing to report" but can't give you a definitive answer, ask them specifically about any international investments in the portfolio. I got burned one year by a fund that had "minimal activity" but failed to mention they had a small position in a Cayman Islands entity that triggered foreign reporting requirements. Bottom line: a few strategic emails now can save you months of headaches later. And honestly, most years these early-stage investments really don't have much to report anyway - it's just that one exception that'll get you if you're not careful!

This is such a common confusion! You're definitely not responsible for paying her taxes - that's entirely her obligation as the service provider. However, you absolutely need proper documentation to claim the Child Care Tax Credit. Here's what you need to do immediately: Start keeping detailed records of every payment (date, amount, method). Since you've been paying cash, ask your provider for a year-end summary showing total payments made, along with her Tax ID number (either SSN or EIN). You'll need this information to complete Form 2441 when filing your taxes. The fact that you're paying $225 weekly means you're spending about $11,700 annually on childcare, which could qualify you for a significant tax credit! Don't let poor documentation cost you hundreds or thousands in legitimate tax savings. If she's reluctant to provide her Tax ID or proper receipts, that's a red flag. Legitimate childcare providers understand they need to provide this documentation to parents. You might want to start looking for alternative arrangements if she continues to be uncooperative about basic tax requirements.

I'm dealing with a very similar situation right now! My in-home provider has been great with care but terrible with documentation. What I've learned is that you're absolutely not responsible for her taxes - that's entirely her business obligation as a service provider. However, you MUST get proper documentation to claim the Child Care Tax Credit, and at $225/week, you're looking at almost $12,000 annually that could qualify for a significant credit. Here's what I did to solve this: 1. I started keeping my own detailed payment log immediately (date, amount, payment method) 2. I had a direct conversation with my provider explaining that I legally need her Tax ID number and year-end payment summary for my taxes 3. I switched from cash to Venmo so there's an automatic record of every payment If she pushes back on providing her Tax ID, that's a major red flag that she may not be reporting her income properly. A legitimate childcare business understands these are standard requirements. You might need to start looking for alternative arrangements if she won't cooperate, because without that documentation, you'll lose out on potentially thousands in tax credits you're entitled to claim. Don't let poor record-keeping cost you money you've already earned through legitimate childcare expenses!