I just went through this exact situation about 2 months ago! The stress and confusion you're feeling is completely understandable - getting a lien notice when you think you're doing everything right is terrifying. Here's what I learned from my experience: The IRS collections department and the installment agreement department don't sync up in real time. My payment plan was active and I had been making payments for 4 months, but I still got a lien notice because their automated system had flagged my account before my payment plan was fully processed across all departments. The good news is this is actually a very common issue and it's usually resolved pretty easily once you get the right person on the phone. I called the specific number on my lien notice (this is key - don't use the general IRS number) and was connected to an agent who could immediately see both my payment plan and the lien notice in their system. She explained that there's typically a 30-90 day processing lag between when payment agreements are established and when all their automated collection processes get updated. She was able to place what she called a "collection hold" on my account right there on the call and confirmed that as long as I continued making my scheduled payments, no further collection actions would be taken. Make sure you have your installment agreement confirmation number and payment history ready when you call. The agent was able to verify each of my payments in real time, which gave both of us confidence that everything was properly set up. You're handling this exactly right by staying current on your payments and seeking advice. This should get cleared up once you speak with someone directly - don't let it stress you out too much!

I'm a newcomer to this community but wanted to share that I went through something very similar just last month. The exact same scenario - active payment plan, regular monthly payments being made automatically, then suddenly got a terrifying lien notice in the mail. What really helped me was understanding that this is essentially a "left hand not talking to the right hand" situation within the IRS. The collections system that generates lien notices operates on a different timeline than the payment processing system. So even though your payments are being received and processed correctly, the automated lien process might have already been triggered before your payment plan was fully updated across all their systems. I ended up calling the number directly on the lien notice (definitely don't use the main IRS line - you'll get transferred around forever). The agent was able to see my entire payment history and confirmed that my installment agreement was active and in good standing. She immediately placed a hold on any further collection actions and assured me that as long as I continued making my scheduled payments, there would be no issues. The whole call took about 30 minutes, and honestly the agent was much more helpful and understanding than I expected. She even explained that this timing mismatch happens frequently, especially during busy periods when there are processing delays between departments. My advice: call that specific number, have your payment confirmation details ready, and don't stress too much about it. You're clearly being responsible about your payments, and this sounds like a textbook case of IRS system timing issues rather than anything you did wrong.

dont overthink this. i deposit cash from my side business all the time. just go to the bank with ID, tell them its payment for freelance work, sign the CTR form they give you, and your done. takes like 5 extra minutes. they see this stuff every day.

One thing I haven't seen mentioned yet is to make sure you keep detailed records of this transaction for your own files. Beyond just getting a receipt from your client, document the date, method of payment, what services were provided, and maybe even take a photo of the cash before depositing (sounds paranoid but it's good documentation). Also, if this client is going to continue paying you large amounts, you might want to consider asking them to get a cashier's check instead of cash for future payments. It's safer for both of you to transport and creates a cleaner paper trail. Banks are much more comfortable with large cashier's checks than large amounts of cash. For tax purposes, just make sure you're setting aside the appropriate amount for taxes since this is self-employment income. The IRS will expect their cut regardless of how you were paid!

I switched from H&R Block to an EA two years ago and couldn't be happier with the decision. I was in a similar boat - regular job plus a consulting side business that was growing, along with some stock investments. At H&R Block, I felt like I was just another number. The preparer would input my information but never really explored potential savings opportunities. When I asked about deductions for my home office or business travel, I got generic responses that didn't really apply to my specific situation. My EA charges about $200 more than H&R Block did, but the value I get is incredible. First year alone, they identified $2,400 in additional deductions - proper home office calculations, business meal deductions I didn't know I qualified for, and equipment depreciation schedules that H&R Block never mentioned. But the real game-changer has been the ongoing relationship. My EA emails me quarterly with reminders about estimated payments and tax planning opportunities. They helped me restructure how I handle business expenses and even advised on the timing of some investment sales to minimize capital gains impact. The expertise difference is night and day. My EA can actually explain the reasoning behind every deduction and helps me plan moves throughout the year to optimize my tax situation. With H&R Block, I was always reactive - just bringing in my documents and hoping they got it right. For anyone with a business component to their taxes, I'd definitely recommend making the switch.

Great thread! I'm also considering making the switch from H&R Block. Reading everyone's experiences really highlights how much value a good EA can provide beyond just filling out forms. One thing I'm curious about - for those who switched, how did you find your EA? Did you go through the IRS directory, get referrals, or use another method? I want to make sure I find someone with experience in small business situations like mine (freelance graphic design work plus rental property). Also, when you first met with your EA, what questions did you ask to evaluate whether they were a good fit? I don't want to make the same mistake of ending up with someone who just goes through the motions, even if they have better credentials than H&R Block preparers.

For those of you trying to figure out if you're over the Roth IRA contribution limits, remember that the MAGI calculation is different from your AGI! I messed this up too. For Roth IRA purposes, your MAGI is your AGI with certain deductions added back in, like student loan interest, tuition deductions, and some others. That's probably why the OP didn't realize they were over the limit until after reviewing their tax forms. Anyone recommend a good tax software that automatically flags potential Roth IRA contribution issues based on calculated MAGI? My current one didn't catch this.

Your tax preparer is absolutely wrong about this being "immaterial." The IRS doesn't have a materiality threshold for excess Roth IRA contributions - $780 is definitely something you need to address. Here's what you need to know about timing: 1. You have until your tax filing deadline (including extensions) to remove the excess contribution plus any earnings. For 2024 contributions, that's typically October 15, 2025 if you file an extension. 2. If you remove the excess before this deadline, you'll avoid the 6% excise tax that applies each year the excess remains in your account. 3. However, any earnings on the excess contribution must be reported as income on your 2024 tax return (the year you made the contribution), not your 2025 return. I'd strongly recommend contacting your brokerage immediately to initiate an excess contribution removal. They'll calculate the earnings portion using an IRS-approved formula based on your account's performance. You'll then need to either amend your 2024 return if already filed, or include those earnings when you file. Don't let this sit - that 6% penalty compounds annually until resolved, and it's much easier to fix now than later.

Great to hear you figured it out, Paolo! Just to add one more tip for anyone else reading this - when you're filling out applications that ask for gross income, it's always worth double-checking what they specifically mean. Some forms will clarify whether they want "total income before taxes" (which would be Line 9) or "adjusted gross income" (Line 11). If they don't specify and you're unsure, you can always call the organization directly to ask which number they prefer. Better to spend 5 minutes on a phone call than have your application delayed or rejected because of confusion about income reporting!

This thread has been incredibly helpful! As someone who works in tax preparation, I see this confusion all the time. Just wanted to add that if you're ever unsure about which line to use, you can also look at the instructions for the specific form you're filling out - they often provide examples like "use Line 9 from Form 1040" or "enter your AGI from Line 11." Also, for those with more complex tax situations (multiple income sources, business income, rental properties, etc.), it might be worth keeping a simple spreadsheet with your key tax numbers each year. I tell my clients to note down their Line 9 total income, Line 11 AGI, and their effective tax rate - these are the numbers you'll need most often for applications throughout the year. Saves a lot of time digging through paperwork later!