Called the tax advocate service and they said theyre all backed up and cant even take new cases rn... we're all in the same boat 🚣‍♀️

I'm in the same boat - filed in early March and still have that 810 code sitting there mocking me every time I check. It's so frustrating because you can't even get through to talk to anyone at the IRS and when you do they just say "wait longer." At this point I'm just hoping it clears before the holidays 🤞

Let me break this down for you comprehensively: First, DO NOT amend. Here's why: - You have an active freeze (810 code) - Your return is already processed (150 code) - You have pending credits (766 codes) The best approach is: 1. Keep monitoring your transcript weekly 2. Use taxr.ai to get a detailed analysis (seriously, it's amazing for understanding these codes) 3. Only call IRS if you see no movement after 60 days I deal with these issues daily, and amending during a freeze is like throwing gasoline on a fire. Just be patient and keep checking your transcript.

Code 810 freezes are incredibly frustrating but you're actually in a better position than many. The fact that your return processed (code 150) and you have credits scheduled for April 15th is promising. The freeze was likely triggered by income verification or credit eligibility checks - very common with refundable credits. Since your transcript shows April 15th dates, that's probably when the system expects to resolve the review. I'd suggest: - Check your transcript every Friday (that's when most updates post) - Don't call unless you see error codes or it's been 90+ days - Definitely don't amend - it'll just create more delays The waiting sucks but you're probably closer to resolution than you think. Most 810 freezes with scheduled credit dates like yours resolve within the timeframe shown on the transcript.

Check if your state has its own health insurance requirement! Federal penalty is gone but states like CA, MA, NJ, RI and DC still have their own penalties. TurboTax should ask which state you're in and apply the right rules.

Just to add some clarity for everyone - the federal individual mandate penalty was indeed eliminated starting in 2019, so there's no federal penalty for not having health insurance. However, if you live in California, Massachusetts, New Jersey, Rhode Island, or Washington DC, those states still have their own individual mandate penalties. Katherine, since you mentioned you're using TurboTax and it's asking about health insurance, you're likely in one of these states. The good news is that all of these states have hardship exemptions similar to what the federal system used to have, including exemptions for periods of unemployment. If you're in one of these penalty states, you should be able to claim a hardship exemption for the months you were unemployed (June through December). You typically don't need to get pre-approval - you can claim it directly on your return. Look for options related to "hardship," "financial hardship," or "unable to afford coverage" when TurboTax walks you through the exemptions. If you're not in one of these states, then there shouldn't be any penalty at all and TurboTax might just be asking for informational purposes.

This whole system is so outdated fr. Why cant they just make it easier 🤦‍♀️

FreeTaxUSA is definitely the way to go! I made the same switch last year and saved like $200. Just a heads up though - if you ever get an IP PIN assigned by the IRS in the future (they sometimes do this automatically if they detect suspicious activity on your SSN), make sure to save it somewhere safe. You'll need it every year after that for e-filing. Good luck with your return!

This entire discussion has been incredibly enlightening. As someone who works in financial consulting, I've unfortunately seen similar situations where clients think they've found a "loophole" when they're actually committing tax fraud. What strikes me most is how technology has completely changed the game. The IRS's ability to cross-reference data, analyze patterns, and flag suspicious returns means these fake LLC schemes are essentially guaranteed to get caught eventually. People who think they're being clever are actually just creating a digital paper trail that screams "audit me." The real tragedy is how preventable these disasters are. The clients bragging about saving $12,000 in taxes could easily face penalties of $30,000+ when caught, not to mention the stress and professional fees. It's a perfect example of being "penny wise, pound foolish." For legitimate business owners reading this, the key takeaway is that proper documentation and genuine business purpose for expenses isn't just good practice - it's essential protection in today's enforcement environment. The peace of mind from operating with complete integrity is worth far more than any questionable "tax savings." To the original poster: your instincts are absolutely correct. Distancing yourself from clients who won't listen to professional guidance isn't just protecting your license - it's protecting your sanity and reputation. No client is worth that kind of liability exposure.

This has been one of the most comprehensive discussions I've seen about the real-world risks of these fake LLC schemes. As someone who handles bookkeeping for several small businesses, I've definitely encountered clients who think these strategies are "smart tax planning" rather than outright fraud. What's particularly striking is the consensus among all the tax professionals here - from preparers to IRS compliance reviewers to financial consultants - that these schemes are essentially guaranteed to get caught with today's enforcement technology. The days of thinking you can fly under the radar with questionable deductions are clearly over. The stories about clients facing $27,000+ penalties really drive home how the short-term "savings" can quickly turn into financial disasters. When you factor in back taxes, penalties, interest, and professional fees to deal with audits, the math becomes devastating. It's a perfect example of winning the battle but losing the war. For anyone reading this who's tempted by these schemes: the IRS isn't just "too busy" to catch small businesses anymore. Their algorithms can detect patterns like newly formed LLCs with minimal revenue but substantial personal expense deductions. You're not outsmarting the system - you're just creating evidence against yourself. To legitimate business owners: focus on proper documentation and genuine business purpose for every expense. The "ordinary and necessary" test isn't just a guideline - it's your protection against audit nightmares.