I went through this exact same process about 3 months ago after getting that scary letter! Don't worry too much - it's really not as bad as it seems. The key things I learned: 1) Definitely call ahead to schedule, walk-ins are usually turned away 2) Bring everything in a clear folder - original Social Security card, driver's license, utility bills, tax returns, and any IRS correspondence 3) Allow at least an hour total even though the actual verification is quick. The staff were professional and understanding. They basically just verify you are who you say you are by comparing your documents to what they have on file. After completion, they told me it would take 6-9 weeks to process my refund, and it actually came in about 5 weeks. You've got this! 💪

I went through this same process about 2 months ago and it was honestly way less stressful than I built it up to be in my head! A couple things that really helped me: bring a small bag or folder to keep all your documents organized - it shows you're prepared and makes the process smoother. Also, the IRS office I went to had pretty limited parking, so I'd suggest arriving about 15-20 minutes early to account for that. One thing nobody mentioned to me beforehand - they might ask you a few questions about your tax history (like what address you filed from last year or your previous employer), so just be ready for that. The actual verification took maybe 10 minutes once I got called back. The IRS employee was really professional and walked me through each step. Don't overthink it - just bring your documents and you'll be fine! 🙂

I went through a very similar situation about two years ago when my uncle gifted me some Microsoft shares he'd held for over a decade. Like you, I was initially confused about the reporting requirements because of the gift tax exclusion. Here's what I learned: You definitely need to report this sale on your tax return, even though your dad doesn't owe gift tax. The $18,000 annual gift exclusion only affects whether your father needs to pay gift tax or file a gift tax return - it doesn't exempt you from capital gains tax when you sell. The key thing you'll need is your dad's original purchase price and date. Since you inherit his "basis" (what he paid), that becomes your cost basis for calculating gain or loss. If he bought the stock years ago for $5,000 and you sold it for $10,000, you'd owe capital gains tax on the $5,000 difference. One thing that worked in my favor was that my uncle had held the shares for more than a year, so I qualified for long-term capital gains rates (which are lower than short-term). Since your dad held them "for years," you should also get this preferential treatment. Don't skip reporting this - the brokerage will send both you and the IRS a 1099-B showing the sale proceeds. If you don't report it, the IRS assumes you had zero basis and will tax you on the full $10,000, which would be much worse than just paying tax on the actual gain.

Great question about stock splits! You definitely need to adjust the original basis for any splits that occurred while your aunt owned the shares. Stock splits don't create taxable events, but they do change the number of shares and the per-share basis. For Tesla specifically, there were stock splits in August 2020 (5:1) and August 2022 (3:1). So if your aunt originally bought 10 shares at $100 each in 2019, after both splits she would have had 150 shares with a basis of about $6.67 per share (the total $1,000 basis divided by 150 shares). Most brokerages should have records of how splits affected the position, and some tax software can help with these calculations. TurboTax handled my Microsoft situation pretty well once I entered the original purchase info - it asked about any corporate actions like splits or dividends that might affect basis. The key is getting the pre-split purchase details from your aunt, then working forward through each split to determine your current per-share basis. If she used a major brokerage, they should be able to provide a detailed history showing how the position changed over time due to splits.

I'm currently going through this process myself - received my CP74 notice two weeks ago. Based on what I'm reading here, it sounds like I should prepare for a 10-14 week wait overall. One thing I'm wondering about is whether anyone has had success with expedited processing due to financial hardship? My refund is significant and I was counting on it for some urgent expenses. Also, for those who used certified mail, did you get confirmation that the IRS actually received and logged your documents into their system? I'm planning to send mine this week but want to make sure I can track that they actually made it into the right hands.

I went through the CP74 process about 8 months ago and wanted to share some practical tips that helped me navigate it smoothly: **Documentation Strategy:** - Send exactly what they ask for, nothing more, nothing less - Make clear copies (not originals) unless specifically requested - Include a simple cover letter listing each document you're sending - Number your pages and reference the CP74 notice number **Tracking & Follow-up:** - Use certified mail with return receipt (around $7 but worth the peace of mind) - Keep copies of everything you send - Mark your calendar for 30 days out to follow up if you haven't heard anything **Timeline Reality Check:** My actual timeline was: Sent docs March 15 → IRS acknowledged receipt April 8 → Verification complete May 22 → Refund issued June 3 → Money in account June 8. Total: 12 weeks from sending documents to receiving refund. The key is patience and not over-communicating with the IRS during the process. Let them work through their system unless you hit the 90-day mark without any communication. Good luck with your case!

Your situation is totally normal for new business owners! I went through the exact same thing when I started my consulting LLC. Here's what I learned: You can absolutely deduct legitimate business expenses paid from your personal account - the IRS doesn't care which account you used, just that the expenses were truly for business purposes. Keep detailed records with dates, amounts, and business justification for each expense. No need to transfer old income to your new business account - that would just complicate your bookkeeping. Start using the business account going forward and treat the past months as a learning experience. That $3,695 quote is absolutely outrageous for your revenue level. I'm doing about $8k monthly and pay my CPA $450 annually for tax prep. For bookkeeping, I use QuickBooks Simple Start ($15/month) and spend maybe 1-2 hours monthly keeping things organized. My advice: create a simple Excel spreadsheet to track your mixed transactions from the past months, then use your new business account religiously going forward. You'll save thousands and actually understand your business finances better by handling the basics yourself initially.

I completely understand your confusion - this is such a common situation for new LLC owners! The good news is you're absolutely fine to deduct those business expenses paid from your personal account. The IRS cares about the legitimacy of the expense, not which account it came from. Here's what I'd recommend based on my experience helping small business owners: 1) Create a simple spreadsheet documenting all business income and expenses from your personal account during those first months. Include date, amount, vendor, and business purpose for each transaction. 2) Don't bother transferring old income to your new business account - that just creates unnecessary complexity. Start fresh with the business account going forward. 3) That $3,695 quote is absolutely excessive for your revenue level. For a $4-5k monthly business, you should be looking at maybe $300-500 for tax preparation and handling your own bookkeeping with software like QuickBooks ($15-30/month). The key is maintaining good documentation. As long as you can show these were legitimate business expenses with proper records, you're golden. Focus on building good habits going forward rather than stressing about the mixed accounts from your startup phase. You've got this! Most successful small business owners went through exactly what you're experiencing.

This has been an incredibly informative thread! I'm in a similar situation with twins starting daycare next year, and this discussion has really helped clarify the FSA vs. tax credit strategy. One thing I wanted to add that might help others - when calculating your potential tax savings, don't forget to factor in state income taxes if you live in a state that has them. The FSA contributions reduce your state taxable income too, which can add another 4-6% in savings depending on your state's tax rate. Also, for those worried about the FSA "use it or lose it" rule, many employers now offer a $610 carryover option (increased from $550 for 2025) or a grace period through March 15th of the following year. This gives you a little buffer if your actual expenses end up being slightly less than projected. @Wesley - given your situation with $5,800 in expected costs, the FSA + credit combination definitely seems optimal. Just make sure to confirm your spouse's part-time income will support the full benefit amount as others mentioned. The math really does work out better than using either option alone at your income level. Thanks to everyone who shared their experiences with documentation and record-keeping too - those practical tips are just as valuable as the tax strategy advice!

Great question about the timing and tax software handling! From my experience, the timing of payments doesn't matter as much as how you allocate them for tax purposes. You can pay your preschool monthly throughout the year and then decide at tax time which expenses to claim through which benefit. For documentation, I create a simple spreadsheet tracking all childcare payments with columns for date, amount, provider, and then two additional columns marked "FSA" and "Tax Credit" where I allocate each expense. This makes it crystal clear which dollars are going toward which benefit and ensures no overlap. Regarding tax software - most programs like TurboTax will walk you through both the FSA reporting and the dependent care credit, but YOU need to make sure you're not double-counting. The software won't automatically catch if you're claiming the same $1,000 expense in both places. It relies on you to input accurate numbers for each section. One tip: I always total up my FSA reimbursements first (your employer should provide a summary), then subtract that amount from my total childcare expenses before entering anything into the dependent care credit section. This prevents any accidental overlap. @Wesley - this systematic approach will serve you well, especially with $5,800 in expenses to track across two different tax benefits. The key is being methodical about the allocation from day one.