If you're considering an Offer In Compromise, you should also look into currently not collectible status as a temporary measure. If your financial situation shows you can't pay your living expenses AND make tax payments, the IRS might put your account in CNC status. Collection activities stop, though interest and penalties continue to accrue. This could buy you time to improve your financial situation or prepare a stronger OIC application. The IRS periodically reviews CNC accounts (usually every 1-2 years) to see if your situation has improved.

I'm in a similar boat with significant 1099 tax debt (though not quite as much as yours). One thing I learned the hard way is to make sure you're current on all your tax filings before even thinking about an OIC. The IRS won't even look at your offer if you have unfiled returns. Also, be prepared for a very detailed financial deep dive. They want to see everything - bank statements for the past 3 months, proof of all monthly expenses, asset valuations, the works. I'd strongly recommend keeping meticulous records of everything and maybe consider getting your financial house in order before submitting if possible. The anxiety is real, but remember that the IRS would rather get something than nothing, so if you truly can't pay the full amount, they're often willing to work with you. Just make sure you can actually afford whatever payment plan or settlement you propose - defaulting on an OIC agreement puts you in a much worse position.

I've been dealing with this exact issue for the past few years as someone who receives about 40 1099s annually. What I've learned is that the legal requirement for consent is real, but enforcement is inconsistent across companies. My strategy has been to create a simple email template that I send to the main contact at each company (usually whoever sent the original consent email). I keep it brief: "I do not consent to electronic delivery of tax documents. Please send my 1099 forms via postal mail to [address]. Thank you." I also keep a spreadsheet tracking which companies I've contacted and their responses. This has been invaluable when some companies claimed they never received my opt-out request. Having that paper trail saved me during tax season when I had to follow up on missing forms. One thing I've noticed is that newer companies using automated systems are more likely to assume electronic delivery is the default, while established companies with traditional payroll departments usually default to paper unless you specifically consent to electronic. It's frustrating, but being proactive with that simple email template has solved 90% of my issues.

This is such a timely discussion! As someone who handles tax compliance for small businesses, I can confirm that the consent requirement is absolutely real and legally binding. However, what many people don't realize is that there's actually a middle ground approach that might work better for contractors dealing with multiple clients. You can send a single, well-crafted email to all your regular clients in early December (before tax season chaos) stating your preference for paper 1099s. This proactive approach eliminates the January email flood and puts you in control of the conversation. Include your current mailing address and a brief statement like "For tax year 2024, please send my 1099 forms via postal mail rather than electronic delivery." I've seen this work really well for contractors who maintain good relationships with their clients. Most companies appreciate the heads-up and will flag your account accordingly. It's much easier than trying to respond to dozens of automated consent emails or dealing with missing forms later. The key is timing - reach out before companies start setting up their year-end processing, not after they've already made decisions about delivery methods.

Great question! I went through this exact same process with my husband who has albinism. The key is getting the ophthalmologist to write a letter that specifically addresses the IRS criteria while explaining how your wife's condition functionally impairs her vision. Here's what should be included in the letter: 1. Doctor's letterhead with full name, credentials, and medical license number 2. Statement that they have examined your wife and are familiar with her condition 3. Diagnosis of ocular albinism and explanation of how it affects vision 4. Specific mention that while her corrected vision may be better than 20/200 in controlled lighting, the inability to filter light causes severe functional vision impairment equivalent to legal blindness 5. Statement that the condition is permanent 6. Clear conclusion that she qualifies as legally blind for tax purposes The IRS understands that some conditions don't fit perfectly into the standard definitions but still cause equivalent functional impairment. The doctor should emphasize how the light sensitivity makes her vision severely restricted in normal daily activities, which is the key point for qualification. Keep the original letter with your tax records - you don't submit it with your return but need it available if ever questioned.

This is such a helpful thread! As someone who works in disability advocacy, I see these documentation challenges frequently. One additional tip I'd add is to ask your ophthalmologist to include any standardized test results that demonstrate the functional impact of the light sensitivity - things like contrast sensitivity tests or glare testing if they've been performed. The IRS appreciates objective measurements that support the functional impairment claims, especially for conditions like ocular albinism where the disability isn't always captured by standard acuity tests. Even if your wife's visual acuity is technically better than 20/200, measurements showing severe contrast sensitivity loss or inability to function in bright environments can strengthen the documentation. Also, if your wife uses any assistive devices (special sunglasses, screen filters, etc.), having the doctor mention these in the letter as evidence of the functional limitations can be helpful. The goal is painting a complete picture of how the condition impacts daily visual functioning, not just the clinical measurements.

I'm in the same boat! I started selling my vintage toy collection on eBay and am confused about whether I need to track my original purchase price from years ago? Most of these toys I bought in the 90s and have no receipts for. How do I figure out cost of goods sold in this case?

Just went through this exact same situation last year! The confusion is totally normal for first-time Schedule C filers. Here's what I learned after consulting with a tax professional: Your $4,800 total sales (including shipping charged to buyers) is correct for Line 1 gross receipts. Then you'll deduct your business expenses - the $650 eBay fees, $900 actual shipping costs, and don't forget about other deductibles like packaging materials, printer ink for labels, gas/mileage for post office trips, and even a portion of your home if you use it for storage/photography. One thing that tripped me up initially: if you're selling personal collectibles you owned for years (not bought specifically to resell), some of those might actually be capital gains/losses rather than business income. But if you're actively sourcing and reselling as a regular activity, then Schedule C is the right form. Pro tip: Start keeping detailed records NOW for this year - every receipt, every mile driven, every supply purchased. It makes next year's filing so much easier! Also consider opening a separate business bank account to keep everything clean and organized. You've got this! The first year is always the hardest but it gets much simpler once you understand the process.

Has anyone used a bank product like Republic Bank Tax Refund Solutions? My tax guy said he can offer a refund transfer through them, but I'm not sure if it's worth the extra fee ($39.95 in my case). Also slightly worried about delaying my refund by adding another party to the transaction.

I was in a similar situation last year with my side business and ended up going with a local CPA who didn't offer refund transfers. Here's what I learned: Most independent CPAs require payment upfront or when services are completed, but many are more flexible than you'd expect if you just ask. I called around to about 5 different CPAs in my area and found that 2 of them were willing to work out payment arrangements - one let me pay half upfront and half when my refund came in, and another was willing to complete the return and wait for payment until after I received my refund (though they held onto filing it until paid). The CPA I ended up using charged $280 but found business deductions I never would have known about that increased my refund by over $600. The extra paperwork and questions they asked revealed legitimate expenses I could claim that TurboTax's interview process never would have caught. My advice: Call a few local CPAs, explain your cash flow situation honestly, and ask about payment options. Many small business owners face the same issue and good CPAs understand this. The peace of mind and potential extra deductions often make it worth paying a bit more than the software route.