One thing to consider since you're going to basic training - make sure whatever option you choose doesn't require you to physically access anything while you're away. That's a hassle you don't need during training. Direct deposit to an established bank account is your best bet. File electronically before you leave if possible. If your training starts February 3rd, you might even be able to file in late January as soon as you have your W-2.

I went through a similar situation when I was preparing for deployment a few years ago. After reading all these responses, I'd definitely echo what others have said about avoiding the Emerald Card - those fees add up quickly and you don't want to deal with that headache while you're in basic training. Since you're military, you have some great free filing options. The IRS Free File program has several providers that offer completely free tax preparation for military members, and you can set up direct deposit to your regular bank account. TurboTax Military Edition is also free for active duty and reserves. One tip I learned the hard way - if you're going to basic training, make sure you can access your bank account online/mobile while you're there. Some banks have security features that might flag activity from different locations. Call your bank before you leave and let them know you'll be at basic training so they don't freeze your account. Also, since you mentioned wanting to pay off that credit card, consider setting up automatic payments from your bank account for at least the minimum payment while you're in training. The last thing you want is a late payment hurting your credit score while you're serving. Good luck with basic training!

Here's something nobody's mentioned yet - if the tax fraud involves a business or someone with complicated finances, consider how the IRS might approach the investigation. In my experience (former bookkeeper), they don't just send a letter saying "hey, you committed fraud." They'll likely trigger what looks like a random audit for that tax year. They'll request documentation for ALL income sources, not just the specific ones you're reporting. This helps mask how the investigation started, as the taxpayer won't know which specific items triggered the audit. Also, if the person has a tax preparer, the IRS might contact the preparer first, not the taxpayer directly. The preparer is bound by confidentiality and won't reveal to their client that a whistleblower was involved.

I want to add some perspective from someone who works in tax compliance. The IRS has very sophisticated methods for protecting informant identities, and they take this seriously because they rely heavily on tips from the public to identify tax fraud. When you submit Form 3949-A, the information goes through what's called a "classification process" where it's evaluated and then sanitized before any investigation begins. The IRS will often wait several months before initiating contact with the taxpayer, and they may gather additional information from other sources first to further obscure the origin of the investigation. One thing that might give you additional peace of mind: the IRS often batches these investigations with other cases or combines them with broader compliance initiatives. So even if there are only two people who know about the fraud, the taxpayer might assume the audit is part of a larger sweep of similar businesses or high-income individuals in their area. The key is providing detailed, specific information in your initial report. Include exact amounts, dates, and describe the evidence you have. The more complete your initial submission, the less likely they'll need to contact you for clarification, which further protects your anonymity.

One thing nobody has mentioned yet - make sure you're keeping detailed records of all your refunds! The IRS can ask for documentation if you get audited. I create a separate spreadsheet that tracks: - Original sale amount - Date of refund - Full refund amount to customer - Any processing fees returned to me - Final amount I paid out of pocket This has saved me several times when I needed to verify my Schedule C numbers.

This is such a helpful thread! I'm also a new small business owner and was completely confused about this exact same issue. Based on what everyone is saying, it sounds like the key is to separate the customer refund (which goes on Line 2) from the processing fee refund (which reduces your expenses). I've been making the mistake of only reporting what came out of my pocket rather than the full customer refund amount. This means I've probably been overpaying my taxes! Going to go back and review my records now to make sure I'm doing this correctly going forward. Thanks to everyone who shared their experiences - it's so reassuring to know other small business owners have dealt with the same confusion!

Just a heads up on something that bit me last year with my medical practice's retirement plans. When you have an S-Corp that's part of a medical LLC like your wife does, you need to be extremely careful about "controlled group" rules. Even though the S-Corps are separate entities, the IRS might consider them a controlled group or affiliated service group if there's enough overlap in ownership or services. If that happens, all employees across ALL entities might need to be included in your retirement plan calculations. I'd recommend having your CPA specifically address whether controlled group rules apply in your situation before setting up the profit sharing. This is a frequent audit trigger for medical groups.

This is a really helpful discussion! As someone new to the complexities of S-Corp retirement planning, I'm learning a lot from everyone's experiences. One question that comes to mind - has anyone dealt with the timing aspects of profit sharing contributions? I understand the S-Corp can contribute up to 25% of W-2 wages, but are there specific deadlines for making these contributions? Can they be made after year-end but before the tax filing deadline (with extensions), similar to SEP-IRA contributions? Also, given all the warnings about controlled group rules, it seems like getting a professional determination letter or opinion from a qualified plan attorney might be worth the investment upfront rather than risking an audit issue later. Has anyone gone that route for peace of mind? The medical practice structure described here sounds quite common, so I imagine there are established best practices that practitioners have developed over time.

This is such a common source of confusion! I dealt with a similar situation when my grandmother passed and left her house to my mom, who then sold it and shared the proceeds with us kids. The key distinction everyone has highlighted is absolutely correct - once that house transferred to your mom through probate, it became her asset. The money she's giving you now is coming from her, not directly from your father's estate, so it's definitely a gift from her perspective. One thing I'd add that might be helpful: if your mom is concerned about the gift tax implications, she could also consider making the gifts over multiple years. She could give you and your brother each $17,000 this year, then another $17,000 next year, and the remaining $6,000 the following year. This would keep everything under the annual exclusion and avoid any filing requirements entirely. Also, don't stress about the tax implications for yourself - as others have mentioned, you won't owe any taxes on receiving this money regardless of how it's classified. The "tax burden" (really just a filing requirement in most cases) falls on the person making the gift, not receiving it. Your instinct to eventually consult with a tax professional is smart, especially since this involves a significant amount of money and you want to make sure your mom handles everything properly on her end.

I'm a tax preparer and see this situation frequently during filing season. What you're describing is definitely a gift from your mother, not inheritance from your father's estate. The critical factor is that the property went through probate and became your mother's asset before she decided to share the proceeds with you. One additional consideration I haven't seen mentioned yet: if your mother is married (to someone other than your father), she and her spouse could potentially each give you $17,000 annually, effectively doubling the tax-free amount to $34,000 per year. This is called "gift splitting" and requires both spouses to consent and file gift tax returns, but it's another legitimate strategy to minimize gift tax implications. Also, make sure your mother keeps good records of the sale and any gifts. She'll want documentation showing the sale price, her basis in the property (likely the stepped-up basis from when she inherited it), and records of any gifts exceeding the annual exclusion. This will be important for both gift tax reporting and her own estate planning records. The peace of mind from getting professional advice is usually worth the cost, especially when dealing with larger amounts like this. But you're smart to educate yourself first - it sounds like you have a good understanding of the situation now.