I'm currently going through almost exactly what you described with Anchor Accounting! They filed my Self-Employment Tax Credit in February 2024 with the same promises about quick processing that never happened. After reading through all the advice here, I'm taking action immediately. First thing Monday morning I'm filing Form 2848 to revoke their power of attorney - several people here have confirmed this stops them from accessing your account and potentially intercepting refunds. I'm also going to try the Claimyr service that others mentioned to actually speak with an IRS agent and get real information about my refund status instead of more excuses from Anchor. What really concerns me after reading the tax professional's comment is that my credit might have been overclaimed. I'm definitely going to run my documents through taxr.ai to verify the calculations before this turns into an audit situation. Better to file an amended return now if there are errors rather than deal with penalties later. I'm also planning to file complaints with my state's Attorney General consumer protection division and the IRS Office of Professional Responsibility. It's clear from this thread that Anchor has a pattern of making unrealistic promises to get clients, then leaving them hanging with no real support. Thanks to everyone for sharing their experiences and resources - knowing I'm not alone in this mess and having concrete steps to take makes me feel like there's actually hope of resolving this nightmare. I'll update this thread once I make progress in case it helps others in similar situations.

I'm currently in the middle of a very similar situation with Anchor Accounting and this entire thread has been incredibly eye-opening. They filed my Self-Employment Tax Credit back in March 2024 with the same unrealistic "15-20 day" timeline that seems to be their standard sales pitch. After reading through everyone's experiences here, I'm realizing that I need to take immediate action rather than continuing to wait for their excuses. I'm going to revoke their power of attorney first thing tomorrow using Form 2848, then try the Claimyr service to actually speak with an IRS agent about what's really happening with my refund. What's particularly concerning to me after reading the tax professional's insights is that these companies may have been knowingly making false timeline promises even after the IRS moratorium on processing these credits. That feels like deliberate deception to acquire clients, especially when combined with their "advance payment" loan programs. I'm also planning to run my documents through taxr.ai to verify whether they overclaimed my credit like several others discovered. At this point I'd rather know the truth about my eligibility and file an amended return if necessary than risk an audit down the line. Thanks to everyone who shared their resources and experiences - this thread has given me a clear action plan when I was feeling completely lost dealing with Anchor's runaround. I'll make sure to update with my progress in case it helps others in similar situations.

This entire discussion has been incredibly eye-opening! I'm just getting started with my freelance consulting business and have been completely avoiding the sales tax question because it seemed so intimidating. Reading through everyone's real experiences has shown me that I'm definitely not alone in this confusion, and more importantly, that there are actual solutions and resources available. The recurring theme I'm seeing is that most freelance services (like my business consulting) are typically not subject to sales tax in most states, but any digital or physical products definitely can be. I love the advice about separating services from products on invoices - that seems like such a simple way to keep things clear for both tax purposes and client understanding. I'm definitely going to start with the free SCORE mentoring that several people have recommended, then potentially use taxr.ai to handle the more complex multi-state calculations as my client base grows. The combination approach that Nia Davis described sounds perfect for getting both the personal guidance and the technical accuracy. One quick question for the group - for those of you who've been doing this for a while, how often do you review your sales tax obligations? Is this something you check annually, or do you need to monitor it more frequently as your business grows and potentially crosses into new states or revenue thresholds? Thank you all for sharing such detailed, practical experiences. This community is amazing for helping newcomers navigate these complex business issues that you just don't learn about until you're actually running a business!

This has been such an incredibly comprehensive discussion! As a newcomer to freelancing (just launched my copywriting business), I've been paralyzed by sales tax confusion for weeks. Reading through everyone's experiences has been both reassuring and educational. What really stands out to me is how many of you found success combining free resources like SCORE mentoring with paid tools like taxr.ai. That approach makes perfect sense - get the foundational knowledge and state-specific guidance from experienced mentors, then use technology to handle the complex calculations and tracking. I'm particularly grateful for the practical tips about separating services from products on invoices. As a copywriter, most of my work is pure service (writing blog posts, emails, etc.), but I sometimes create downloadable content guides or templates that clients can reuse. It sounds like I need to be much more intentional about categorizing these different offerings. The point about monitoring quarterly once established, but monthly when starting out, is exactly the kind of actionable advice I needed. I'm going to set up a simple tracking system now while my client base is small, rather than waiting until it becomes overwhelming. For those who mentioned international clients - this is really helpful since I'm starting to get inquiries from Canadian companies. It's good to know that US sales tax typically doesn't apply to international work, though I'll definitely verify this with SCORE. Thank you all for being so generous with sharing your real-world experiences. This thread has given me the confidence to tackle this systematically instead of continuing to avoid it. Off to contact SCORE this week!

Pro tip: check if you qualify for any additional credits like child care expenses or education credits. Might help offset some of that drop

This is totally normal but I get why it's frustrating! The software was basically showing you a "fantasy refund" based on just one income. With $99k combined income, you're definitely hitting those phase-out ranges for EIC and possibly some Child Tax Credit reduction. The good news is $4k is still a solid refund - means you had decent withholding throughout the year. Next year consider adjusting your W-4s if you want less refund and more in your paychecks during the year.

Here's what you need to do step by step: 1. First, check your transcript again in about 5-7 days to see if code 571 appears (that means the hold is released) 2. If you don't see code 571 within 10 days, try calling the IRS at 1-800-829-1040 3. Before calling, prepare by having your tax return, transcript, and ID ready 4. If you still don't see movement after 21 days from your original filing date, you might want to file Form 911 (Taxpayer Advocate Service request) I'm a bit worried about my own return too - I'm in a similar situation but with a different code. The waiting is the hardest part, especially when you've planned for that money to arrive by a certain date.

I'm going through something similar right now! My employer was also late submitting W-2 info, and I've been stuck with code 570 for about 10 days now. What's really frustrating is that we have to deal with the consequences of our employers' delays. I've been checking my transcript every couple days like some others mentioned, and honestly it's become a bit obsessive. The uncertainty is killing me because I had plans for that refund money too. Based on what others are saying here, it sounds like we just have to wait it out, but man, this whole system seems backwards - why should we be penalized for something our employers did wrong?

Something nobody mentioned yet - if you're including costs on Line 5 of 1125-A, make sure you keep DETAILED records! The IRS scrutinizes "Other Costs" more carefully because people often misclassify expenses there. Save all receipts and documentation showing how these costs directly relate to producing your goods. I got audited last year partly because I had a large amount in "Other Costs" without sufficient documentation to prove they were actually COGS-related expenses. Learned my lesson the hard way!

This is really helpful information everyone! As someone who's been struggling with business tax forms, I want to add that the IRS Publication 334 (Tax Guide for Small Business) has a decent section on Form 1125-A that might help clarify things. What I learned from reading it is that Line 5 "Other Costs" should only include costs that are both: 1) directly attributable to the goods you produce or sell, and 2) not already covered in the other specific lines on Form 1125-A. For most service businesses (like consulting, freelancing, etc.), you probably won't even need to file Form 1125-A at all since you don't have traditional "goods sold." The form is really meant for businesses that manufacture products or buy/sell inventory. If you're unsure whether your business needs this form, the general rule is: if you don't have beginning or ending inventory to track, you likely don't need 1125-A and should just put all your business expenses on Schedule C or the appropriate business tax form.