I'm going through this exact same situation right now! Got my 5071C letter two weeks ago and have been losing sleep over it. Reading everyone's real experiences here is way more helpful than the generic IRS timelines. Quick question for those who've been through this - after you verified online, did you get any confirmation email or notice that it went through successfully? I completed the ID.me process but I'm paranoid I missed something. The website just said "verification complete" but I didn't get any follow-up documentation. Also seeing a lot of mentions about checking transcripts - is there a specific transcript type I should be looking at? I've never accessed mine before but sounds like it's crucial for tracking actual progress vs the useless WMR updates. Really hoping I can get on one of those faster timelines like Ava experienced rather than the horror stories of 12+ weeks!

I'm currently going through this same verification process and found this thread incredibly helpful! Got my 5071C letter last week and verified through ID.me on Monday. The real-world timelines you all shared (17-37 days) are so much more realistic than the generic "9 weeks" the IRS keeps throwing around. For anyone else in this boat - I called the IRS helpline yesterday (used the early morning trick, called right at 7am) and they confirmed that ID.me verifications are processing much faster than phone/mail verifications right now. The agent said they're seeing most online verifications clear within 3-4 weeks. Also wanted to add - if you're a student like the OP, definitely reach out to your school's financial aid office about the delay. Most universities have emergency loan programs or payment deferrals for exactly this situation. Mine gave me a 45-day extension when I explained the IRS verification delay, which takes a lot of pressure off while waiting. Checking my transcript daily now and hoping to see that TC 971 code appear soon. This community is a lifesaver for getting real info instead of the IRS runaround!

I've been lurking on this thread for a while and finally decided to jump in because the experiences shared here are so valuable! As someone who's been doing tax prep for about 2.5 years, I was really torn between EA and CPA until reading all these detailed responses. What really convinced me is the combination of factors everyone's mentioned: the specialized focus on tax work (which is what I love most about my job), the faster timeline to completion, and especially those salary progressions. Seeing multiple people go from the $50-60K range to $80-90K+ within a couple years of getting their EA is exactly the kind of career advancement I'm looking for. I'm particularly intrigued by the networking and referral opportunities that @a72b2d1c1916 mentioned. Moving beyond just return preparation to handling complex representation cases sounds like it would make the work much more engaging and rewarding. Based on everything I've read here, I'm planning to start with the free IRS study materials and aim to complete Part 1 within the next 2 months. The consistent advice to start there given my individual tax background makes perfect sense. Thanks to everyone who shared their journeys - this thread has been more helpful than any career counseling I've received! It's amazing how much real-world insight you can get from people who've actually walked this path.

I've been working in tax prep for about 18 months and this entire thread has been absolutely eye-opening! As someone relatively new to the field, I was feeling overwhelmed trying to figure out the best path for career advancement, but the detailed experiences everyone has shared here have really clarified things for me. What stands out most is how consistently everyone emphasizes that the EA is perfect for tax-focused careers. The salary progressions are impressive - seeing people go from the $50-60K range to $80-90K+ within just a few years of getting their EA shows there's real financial benefit to pursuing this credential. I'm particularly motivated by the timeline discussions. Knowing that it's possible to complete all three parts in 3-6 months while working full-time makes this feel achievable rather than overwhelming. The advice to start with Part 1 (Individual) makes perfect sense given my current experience level. The point about unlimited practice rights across all states is something I hadn't considered but could be huge for future opportunities. And the networking aspects that @a72b2d1c1916 mentioned - getting referrals through EA professional networks - sounds like it could really help build a practice over time. Based on everything I've read here, I'm convinced the EA is the right first step for my career goals. Planning to start with the free IRS study materials and aim to take Part 1 within the next 3 months. Thanks to everyone for sharing such detailed, real-world experiences - this has been incredibly valuable for someone just starting to map out their career path!

Has anyone used TurboTax or similar software to handle these loss carryovers from closed businesses? I'm in a similar situation and wondering if the mainstream tax software can correctly handle these situations or if it's worth paying a CPA one last time.

As someone who recently went through a similar situation with closed business entities, I'd strongly recommend getting professional help one more time to ensure you handle these carryovers correctly. The rules around passive loss disposition and QBI carryforwards can be tricky, and making mistakes could cost you significant tax benefits or trigger an audit. If you're determined to DIY, make sure you have all your prior year tax documents showing the original sources of these losses. You'll need to trace back to the Forms 8582, 8582-CR, and Form 8995-A from previous years to properly calculate what becomes deductible versus what carries forward. The passive losses should indeed become fully deductible in the year of complete disposition, but you'll need to prove the businesses were completely closed and disposed of. Keep documentation like final bank statements showing zero balances, state dissolution certificates, and any asset sale records. For the QBI loss carryforward, unfortunately that's likely going to remain unused unless you generate qualifying business income in the future. There's no mechanism to convert unused QBI losses to ordinary deductions when you permanently exit business activities.

Has anyone used TurboTax to report RSUs with blackout periods? I'm trying to figure out how to input this correctly to avoid IRS issues.

I've been dealing with RSUs and blackout periods for about 3 years now, and it definitely gets confusing! Just to add to what others have said - the vesting date is indeed your acquisition date for tax purposes, but here's something that tripped me up initially: make sure you're getting the correct cost basis on your 1099-B forms. My brokerage (also Fidelity) sometimes reports the cost basis as $0 for RSU sales, which would make it look like the entire sale amount is taxable gain. But since you already paid income tax on the FMV at vesting, you need to adjust this. Your actual cost basis should be the fair market value on the vest date that was reported on your W-2. For the wash sale concern - yes, be very careful if you have quarterly vesting. I made the mistake of selling some underwater RSUs in November and then had new ones vest in December of the same stock. Had to deal with wash sale adjustments that were a real headache. Now I time any sales to avoid the 30-day window around vesting dates. One tip: keep really good records of your vest dates and the stock price on those dates. You'll need this info for years to come, especially if you hold shares long-term.

I'm sorry you're dealing with this stressful situation on top of everything else that comes with divorce. The timing rules for filing status can feel really unfair, especially when you've been financially supporting someone for most of the year. One thing I haven't seen mentioned yet - if you made any direct payments to third parties on behalf of your ex-spouse (like paying her student loan directly to the lender, or medical bills directly to healthcare providers), these might potentially qualify for different tax treatment depending on how they were structured in your divorce agreement. Also, while you can't claim your ex as a dependent, make sure you're not missing any other potential deductions you might be entitled to as a single filer. Sometimes people overlook things like unreimbursed employee expenses, professional development costs, or other itemized deductions that could help offset some of that tax bill. The quarterly estimated payment advice from others here is really crucial for 2025. The IRS safe harbor rule generally requires you to pay 110% of last year's tax liability through withholding and estimated payments to avoid penalties, so calculating what you'll need for next year based on your new filing status will save you from this same shock again. Hang in there - this is definitely manageable with the right plan in place!

I'm really sorry you're going through this - divorce is stressful enough without getting blindsided by unexpected tax consequences. The December 31st rule is definitely one of those harsh realities of tax law that can feel completely unfair when you've been financially responsible for someone most of the year. A few additional thoughts that might help: **Document everything**: Keep detailed records of all the support payments you made during 2024. While they won't help for dependency claims, having this documentation could be valuable if there are any questions about your financial situation during the divorce year, especially if you end up needing to work with the IRS on payment arrangements. **Consider professional help**: Given the complexity of divorce-year taxes and the size of your unexpected bill, it might be worth consulting with a tax professional who specializes in divorce situations. They can review your entire situation to make sure you're not missing any deductions or credits, and help you plan properly for 2025. **Emergency fund for next year**: Once you get through this year's tax situation, consider building a small emergency fund specifically for tax-related surprises. Life changes like marriage, divorce, job changes, or having children can all create unexpected tax implications. The silver lining is that 2025 should be much more predictable now that you know your filing status and can plan accordingly. You've learned an expensive lesson, but you'll be much better prepared going forward!