Don't some people create LLCs or S-Corps specifically to write off stuff though? I know a guy who has a "consulting business" but seems to write off his car, travel, meals, etc., and I'm pretty sure he only has like 2 clients a year. Is that legal?

The IRS has gotten much more sophisticated with data analytics in recent years. They use algorithms to identify patterns that suggest tax fraud, including businesses that consistently show losses while claiming large deductions against W-2 income. One thing people don't realize is that the IRS cross-references data from multiple sources. If you claim a "travel consulting business" and write off vacations, but they see no business income reported, no business bank account activity, no marketing expenses, no client communications, etc., it paints a clear picture. They also look at lifestyle vs. reported income. If someone making $50K W-2 income is writing off $20K in "business" expenses for luxury items but shows no corresponding business revenue or growth trajectory, that's an obvious audit trigger. The key is that legitimate businesses leave paper trails everywhere - bank statements, client contracts, invoices, marketing materials, business licenses, professional development, etc. Fake businesses created just for tax avoidance lack this ecosystem of supporting documentation. Beyond audits, the IRS can also impose accuracy-related penalties (20% of underpaid tax) or fraud penalties (75% of underpaid tax) plus interest. The risk-reward math just doesn't work out for these schemes.

Is anyone else getting a timeout error on FFFF after about 10 minutes of inactivity? I finally managed to create an account yesterday but keep losing my work because the session expires way too quickly!

I ran into this exact same issue last week! What finally worked for me was creating the account during off-peak hours (around 6 AM EST) and using a completely fresh browser profile - not just clearing cookies, but actually creating a new browser profile entirely. Also, make sure you're not using any password managers to auto-fill the forms. I noticed FFFF seems to have issues with auto-filled data sometimes. Type everything manually, even if it's tedious. One more tip - if you have any old FFFF accounts from previous years, you might need to contact the IRS to clear those out first. Sometimes there's a conflict in their system if they detect similar information tied to old accounts. The phone wait times are brutal though, so you might want to try the other suggestions first. Good luck with getting those returns done! The system is definitely more glitchy than usual this year.

I went through something similar with my tax refund last year. What worked for me was splitting up the transfers into smaller amounts over several days. Instead of trying to move everything at once, I did multiple transfers just under the daily limit. Also, some of these financial apps have different limits for different transfer methods. For example, I couldn't transfer more than $500 per day to my bank through ACH, but I could do an instant transfer for a small fee with a higher limit. Might be worth the fee if you need the money urgently for medical expenses.

This sounds incredibly frustrating, especially when you need the money for medical expenses! Based on what you've described, this is almost certainly a banking/financial institution issue rather than an IRS problem. Once the IRS shows your refund as deposited on their transcript, they've completed their part. A few quick questions that might help narrow down the solution: • What type of account is showing the deposit? (traditional bank, online bank, Cash App, etc.) • Have you completed all identity verification requirements with that financial institution? • When you say transfers are "declined," are you getting any specific error codes or messages? The $500 ATM limit suggests this might be a newer fintech platform that has stricter transfer limits until you complete additional verification steps. Many of these platforms automatically restrict large government deposits as a fraud prevention measure. I'd recommend calling their customer service and specifically asking about "large deposit holds" or "government refund verification requirements" - that usually gets you to the right department faster than general support. Keep documentation of everything in case you need to escalate this further. Hope you get access to your money soon!

Has anyone actually disputed the AMT forms with the IRS? I exercised ISOs last year, held for 8 months, then sold. I didn't report any AMT adjustment on Form 6251 since I figured the disqualifying disposition meant I just pay ordinary income tax on the gain. My accountant agreed with this approach. The IRS hasn't questioned it so far but I'm still nervous about it.

Just want to add some clarity on the AMT credit situation since it seems like there's some confusion in the thread. When you exercise ISOs and trigger AMT, you do get AMT credits that can be used in future years - but these credits can only offset regular tax liability, not AMT liability in future years. The key thing to understand is that AMT credits are essentially a way to recover the "prepayment" you made through AMT. However, you can only use these credits when your regular tax exceeds your AMT in future years, and only up to the difference between the two. For Anna's situation with $58,750 of potential AMT income ($23.50 spread × 2,500 shares), the actual AMT impact depends on her total income, deductions, and other AMT adjustments. The AMT exemption for 2025 is $85,700 for single filers, so if this ISO exercise is her only major AMT adjustment, she might not even trigger AMT. My recommendation would be to model this out with actual numbers including your other income sources. The exercise-and-sell-same-year strategy that others have mentioned really is the cleanest approach if you don't need to hold for the long-term capital gains treatment.

This is exactly the kind of situation that highlights how broken the trust administration system can be. I went through something similar two years ago with a family trust where the successor trustee was completely overwhelmed and kept missing deadlines. One thing that really helped me was getting proactive about documentation early. I started sending monthly written requests for status updates starting in January, which created a clear paper trail of the trustee's delays. When I finally had to file late, I was able to show the IRS exactly how many times I'd requested the K1 and when. Also, don't underestimate the power of involving other beneficiaries if there are any. In my case, once other family members started getting frustrated with the delays, we were able to collectively pressure the trustee to get organized. Sometimes trustees respond better to multiple beneficiaries complaining rather than just one. The extension filing is absolutely critical though - that Form 4868 will save you from the worst penalties even if you end up owing taxes. And if you do end up having to pay penalties because of trustee delays, make sure to document every fee and consider pursuing reimbursement from the trust itself. Trustees who cause beneficiaries to incur penalties due to their mismanagement can be held financially responsible.

As a beneficiary, you absolutely have the right to know about other beneficiaries and basic information about the trust! This is fundamental to your rights as a beneficiary. You should request a copy of the trust document (or at least the relevant portions) and a list of all current beneficiaries. The trustee is legally required to provide this information. In fact, the trustee's secrecy about the trust details is another red flag that they may not be fulfilling their fiduciary duties properly. Beneficiaries have the right to: - Receive copies of trust documents - Get regular accountings of trust assets and transactions - Know who the other beneficiaries are - Receive timely distributions as outlined in the trust - Be informed of any major decisions affecting the trust If the trustee is being secretive AND missing major deadlines like K1 distribution, you're dealing with potential serious mismanagement. I'd strongly recommend sending a formal written request for all of this information immediately, not just the K1. Having other beneficiaries as allies can definitely help pressure the trustee to get organized. Plus, if multiple beneficiaries are having the same K1 delay issues, it strengthens everyone's case for holding the trustee accountable for any resulting penalties or costs. Document this secretive behavior too - it's all part of the pattern of poor trust administration that could support your case if you need to pursue trustee liability later.