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 went through the OIC process about 18 months ago and wanted to share my experience since you're looking for real stories. I owed around $28,000 in back taxes from 2019-2021 when my freelance income wasn't being properly tracked. The process was honestly more complex than I expected, but it worked out. I ended up settling for $3,200 paid in a lump sum. The key things that helped me: 1) I was brutally honest about my financial situation - included everything down to my $800 car value 2) I gathered 3+ years of bank statements, pay stubs, and expense records before starting 3) I calculated my reasonable collection potential very conservatively using the IRS formula The biggest surprise was how thorough their review was. They asked for additional documentation twice, including proof of some medical expenses I'd claimed. The whole process took about 8 months from submission to acceptance. One thing I wish I'd known: having a tax lien in place actually helped my case because it showed genuine financial hardship. Also, timing matters - I submitted in February when their workload is supposedly lighter. Overall, it was stressful but absolutely worth it. Just make sure you qualify before spending the time and $205 application fee. The IRS pre-qualifier tool is pretty accurate.

I successfully completed an OIC in 2023 and want to share some insights that might help. I owed $47,000 from a business closure and settled for $5,800 over 12 months. The biggest lesson I learned: preparation is everything. I spent 2 months gathering documents before even starting the application. Bank statements, tax returns, proof of expenses, asset valuations - literally everything. When the IRS requested additional documentation (which they did twice), I had it ready within days. One thing I haven't seen mentioned here is the importance of your monthly disposable income calculation. The IRS uses a very specific formula, and even small errors can sink your application. They look at your income minus allowable living expenses to determine what you can realistically pay over time. Also, be prepared for the emotional toll. Living with uncertainty for 9 months while they reviewed my case was incredibly stressful. But when that acceptance letter came, it was life-changing. Going from $47K debt to manageable payments literally saved my financial future. My advice: if you truly can't pay the full amount and meet their financial hardship criteria, it's absolutely worth pursuing. Just go in with realistic expectations and impeccable documentation.

This timeline is incredibly helpful - thank you for documenting everything so precisely! I'm currently on day 11 since filing and just got both the 570 and 971 codes yesterday, so your 28-day experience gives me a realistic framework to work with. What really stands out to me is how you mentioned the business tax concern because I'm in the exact same boat. I have a small side business and was actually hesitating to file my Schedule C because I wasn't sure if these personal return codes would somehow flag my business filing for extra review. It's reassuring to hear you don't think they're connected. I've been driving myself crazy checking my transcript multiple times a day, but seeing your detailed breakdown helps me realize this is just their normal process this year. Did you ever find out what specifically triggered the hold when you received the 971 notice, or are you still waiting for that to arrive in the mail? The uncertainty is definitely the worst part of this whole experience!

Thank you so much for sharing this detailed timeline! I'm currently on day 19 since filing and got my 570/971 codes about 5 days ago. Your experience gives me hope that I should see movement soon. What really caught my attention was your mention about being concerned for your business taxes - I'm in the exact same situation with a small LLC that I haven't filed yet. I was starting to worry that these personal return codes might somehow red-flag my business return for additional scrutiny. It's such a relief to hear that this seems to be a normal part of their process this year, even though these codes are terrifying when you first see them. I've been checking my transcript obsessively every morning, but your 28-day timeline helps me set realistic expectations. Did you end up receiving the physical 971 notice yet, and if so, did it explain what actually triggered the review? The uncertainty is definitely the hardest part of this whole process!

Since your wife works at a nonprofit, she might want to check if they're eligible for any special grants that support remote workers. I serve on the board of a small nonprofit and we just got approved for a capacity building grant that specifically covers remote work expenses for our staff, including mileage reimbursements and home office setup. Many foundations have shifted their funding priorities to support flexible work arrangements since the pandemic. Your wife might mention this to her leadership team if they say they "can't afford" to reimburse these legitimate work expenses.

Just wanted to add another perspective as someone who's navigated similar territory with my spouse's W-2 employment situation. While the federal deduction elimination is frustrating, don't overlook some other potential strategies: 1) **State conformity variations**: As others mentioned, check if your state still allows these deductions. Some states like California, New York, and Pennsylvania haven't conformed to the federal changes. 2) **Employer advocacy**: Beyond just asking for reimbursement, consider proposing a formal policy change. Many nonprofits are more receptive when you frame it as "supporting all remote workers" rather than just personal requests. You could even offer to research and draft the policy language. 3) **Documentation for future**: Keep detailed records anyway. The TCJA provisions expire after 2025, so these deductions may return for 2026 and beyond. Having good documentation ready could be valuable. 4) **HSA/FSA considerations**: If she has access to a dependent care FSA, some home office expenses (like internet used for work) might qualify in certain situations. The key is being proactive with the employer conversation. Many nonprofits want to do right by their employees but simply haven't updated their policies for the remote work reality.

15 Regarding the $3000 capital loss limitation - one strategy some of my clients use is to split investment accounts between spouses if married. Since each person has their own $3000 limit, a married couple could potentially deduct up to $6000 in capital losses against ordinary income in a single tax year. Obviously doesn't help if you're single though.

Just want to clarify something that might help your sister's situation - the key thing to understand is that capital losses can offset capital gains dollar-for-dollar without any limitation. The $3,000 limit only applies to deducting net capital losses against ordinary income like wages or salary. So if your sister has $13,500 in capital loss carryovers from last year and $17,000 in capital gains this year, she can use $13,500 of those losses to offset the gains, leaving her with $3,500 in net capital gains to be taxed. The remaining $13,500 - $13,500 = $0 in losses means she won't have any leftover losses to carry forward. This is actually a great situation for her - she gets to use all her losses productively rather than being stuck with the slow $3,000 per year limitation against ordinary income. The timing worked out perfectly with her investments bouncing back this year!