I'm so sorry you're going through this - it's a horrible feeling when you realize someone you trusted has potentially committed fraud using your name. I went through something similar a few years ago and want to share what I learned. First, definitely file that Form 14157 complaint against the preparer as others mentioned. But also consider contacting your state's Board of Accountancy or licensing board if your preparer is licensed - they take these complaints seriously and can revoke licenses. When you file your amended returns, include a detailed letter explaining the situation. I wrote something like "I recently discovered that my tax preparer included fictitious business information on my returns without my knowledge or consent. I am voluntarily amending to correct these errors and have filed a complaint with the IRS regarding this preparer's conduct." The IRS was actually pretty understanding in my case once I showed I was proactively fixing the problem. I had to pay back the excess refund plus interest, but they waived most penalties because I demonstrated good faith by coming forward voluntarily. Document everything - keep copies of all communications, your original returns, and evidence that you don't actually have the business claimed on your return. This will be crucial if the IRS has questions later. You're doing the right thing by addressing this now rather than hoping it goes unnoticed. The IRS has gotten much better at catching these patterns, so it's better to be proactive.

This is absolutely a serious situation that needs immediate attention. As someone who works in tax compliance, I can tell you that what you're describing - creating fictitious Schedule C business losses - is one of the most common forms of tax preparer fraud. The good news is that you discovered this relatively quickly and can take corrective action. Here's my recommended action plan: 1. **Immediately stop using this preparer** - Don't let them file anything else for you 2. **Gather all documentation** - Keep copies of both returns, any communications with the preparer, and proof that you don't operate any business 3. **File Form 14157** to report the preparer to the IRS - This creates an official record 4. **File amended returns (Form 1040-X)** for both years - Include a detailed explanation letter 5. **Consider contacting the IRS Taxpayer Advocate Service** if you run into issues Regarding your concern about the preparer being notified of amendments - they typically aren't directly notified when you file 1040-X forms, but they may find out through other means if the IRS investigates them. You're wise to address this proactively. The IRS has sophisticated systems that flag these patterns, and voluntary disclosure generally results in much better treatment than being caught in an audit. While you'll likely need to pay back the excess refunds plus interest, acting in good faith by coming forward can help you avoid fraud penalties. Don't panic - you're taking the right steps to protect yourself.

I actually just went through this exact situation a few months ago! The anxiety was real, but it ended up being much more straightforward than I initially feared. Since you filed your 83(b) election within the 30-day window, you've already cleared the most critical hurdle. The IRS requirement to attach it to your tax return is more of an administrative step to ensure proper record-keeping on their end. Here's what worked for me: I prepared a simple, professional cover letter stating that I had timely filed my 83(b) election within 30 days of stock purchase but inadvertently omitted it from my e-filed return. I included my full name, SSN, tax year, and explicitly mentioned this was supplemental documentation for my already-processed return. I attached a clean copy of my original signed 83(b) election and mailed everything to the IRS processing center via certified mail with return receipt. The entire process took maybe 15 minutes to prepare, and having that certified mail receipt gave me tremendous peace of mind. No amended return necessary, and no complex procedures - just clear communication and proper documentation. Given that your shares are on a 4-year vesting schedule, getting this sorted now will definitely help you avoid any potential complications down the road. You're being proactive about it, which is exactly the right approach.

I went through this exact situation with my Series A startup last year and can definitely relate to the stress! The good news is that since you filed your 83(b) election within the 30-day window, you've already completed the most critical step. The IRS processing centers are actually pretty used to handling these supplemental 83(b) submissions. I sent mine about 6 weeks after e-filing my return, and it was processed without any issues. The key is being clear and direct in your cover letter. For your cover letter, include: your name, address, SSN, the tax year (2024 for your 2025 filing), and a simple statement like "I am submitting this 83(b) election as supplemental documentation to my e-filed tax return. The original election was properly filed within 30 days of stock purchase on [date]." Send it certified mail to the Fresno processing center since you're in California. I also kept a copy of everything including the certified mail receipt - documentation is your friend with the IRS. Given your 4-year vesting schedule, getting this sorted now will save you potential headaches later. The "phantom income" concern is real if you don't have the 83(b) election properly on file, but since you filed within the initial deadline, you should be protected. The supplemental submission just ensures everything is properly connected in their system.

Is there any software that specifically helps with optimizing the salary vs dividend split for C Corp owners? I'm using turbotax for business now but it doesn't really give guidance, just calculations after you've already decided.

Great question! You're absolutely right that the double taxation fear is often overblown for small C Corp owners. I've been running my consulting business as a C Corp for 3 years now and the salary deduction works exactly as you described. One thing I learned the hard way though - make sure you're paying payroll taxes on your salary (FICA, unemployment, etc.). Some new C Corp owners forget that even as the owner, you're technically an employee when you pay yourself a salary, so all the normal employment tax obligations apply. Also, don't overlook the benefits of being able to retain earnings in the corporation at the lower corporate tax rates (21% federal) if you're not ready to take distributions yet. Sometimes that's actually better than pass-through taxation depending on your personal tax bracket. The key is really understanding your specific cash flow needs and tax situation rather than just following generic "C Corps have double taxation" advice.

Does anyone know if there are exceptions to getting a 1099-S? I sold a small parcel last year and never got one either but my tax guy said it wasn't needed in my case.

Just to add some clarity on the timing - while title companies have until January 31st to send you the 1099-S, most reputable companies will get it to you much sooner, often within 30-60 days of closing. Since you mentioned it's been over three weeks, I'd definitely recommend reaching out to them now rather than waiting. When you contact them, have your settlement statement handy with the closing date and property address. They'll likely ask for this information to locate your file. Also double-check that they have your current mailing address - address mix-ups are surprisingly common and could explain the delay. Even without the 1099-S in hand, start gathering your other documents now: original purchase paperwork, records of any improvements you made to the land, and your closing/settlement statement from the recent sale. You'll need all of this to properly calculate your capital gains anyway, so getting organized early will save you stress later.

I'm dealing with a very similar situation and this thread has been incredibly helpful! I receive occasional PayPal F&F payments from friends in Canada and the UK, mostly for splitting streaming service costs and reimbursements when I ship them things they can't get locally. Reading through everyone's responses, I feel much more confident that these genuine friend-to-friend transactions aren't taxable income. The key points that stood out to me are: 1) The IRS looks at the actual nature of the transaction, not which PayPal button was used, 2) True reimbursements where you're not making a profit aren't income, and 3) The reporting threshold changes are targeting business activities, not personal transfers. I'm definitely going to implement some of the documentation suggestions mentioned here - particularly keeping simple records of what each payment was for. I already have most of this context in our group chats anyway, just never thought to organize it for potential tax purposes. Thanks to everyone who shared their experiences and advice. It's reassuring to know that genuine cost-sharing between actual friends is exactly what the personal transfer category is meant for. Miguel, sounds like you're in the clear with your gaming and snack shipping arrangements!

This whole discussion has been really enlightening! I'm in a similar boat with friends from several countries sending me money through PayPal F&F for various shared expenses - mostly for our online gaming group subscriptions and occasionally when I help them get items that aren't available in their countries. What's been most helpful is seeing the consistent advice that the IRS focuses on the actual nature of these transactions rather than the PayPal category used. Since these are legitimate cost-sharing arrangements with real friends (not business transactions), they fall into the personal transfer category that isn't taxable income. I particularly appreciate all the practical documentation suggestions - from simple phone notes to keeping screenshots of group conversations. It makes sense to have some basic records showing the context of these payments, even though they're clearly personal transfers. One thing I'm curious about though - for those who mentioned consulting tax professionals about this, did you find significant variation in their advice, or was there pretty consistent guidance that genuine friend-to-friend cost sharing isn't taxable? I'm considering reaching out to a CPA just to have professional confirmation for my own peace of mind, especially since my friend group does this fairly regularly throughout the year. Thanks to everyone for sharing their experiences and advice - this has definitely reduced my anxiety about what I now realize are perfectly normal personal transfers between friends!