Ugh same boat here. Been showing zeros for a week now. The wait is killing me 😫

I've been dealing with IRS account balance fluctuations for years and can offer some insight. What you're experiencing is actually pretty common, especially during processing periods. The IRS systems run batch updates overnight, and your account can show different amounts depending on when various transactions are processed. A few things that could be happening: - Payments you made are still being applied to your account - The IRS is processing correspondence or adjustments - System maintenance is causing temporary display issues - Your account is being reviewed for some reason Since you mentioned seeing $1,200 owed for 2023 yesterday and $750 for 2022 before that, but now everything shows $0.00, it's likely that payments or credits are being processed. The fact that all years now show zero is actually a good sign - it suggests your obligations may be satisfied. I'd recommend downloading your account transcripts (if available) to get a more detailed view of what transactions are being processed. The online account view is just a summary and can be misleading during active processing periods. Give it another week or two, but if the fluctuations continue beyond that, definitely call the IRS to get clarification on your account status.

Sorry to jump in with a basic question, but can someone explain WHY law partners have to pay self-employment tax in the first place? I thought that was just for independent contractors and freelancers. If they're partners in a big established firm, why aren't they just considered employees for tax purposes?

This is a really helpful thread! I'm a CPA who works with several law firm partners, and I wanted to add a few practical considerations that might be useful: 1. **Quarterly estimated payments are crucial** - Partners earning $1.9M need to be very careful about underpayment penalties. The IRS expects you to pay 110% of last year's tax liability (or 90% of current year) through withholdings and estimated payments. 2. **State taxes vary significantly** - Some states don't have self-employment tax equivalents, while others (like California) have additional taxes that can really add up for high earners. 3. **Retirement planning is actually a huge advantage** - Partners can often contribute much more to retirement plans than W-2 employees. For 2025, SEP-IRA contributions can go up to 25% of net self-employment income or $70,000, whichever is less. 4. **Business expense deductions** - Partners can deduct things like continuing legal education, bar association dues, professional subscriptions, and even portions of home office expenses if they work from home regularly. The tax burden is definitely substantial, but the flexibility and deduction opportunities often make it more manageable than it initially appears. I always recommend partners work with a CPA familiar with partnership taxation - the rules are complex and mistakes can be expensive.

I dealt with a very similar situation last year when I made large anonymous donations through a local food bank. After consulting with a tax attorney, here's what I learned: The key distinction is whether you made gifts to specific individuals or charitable contributions to an organization. If the charity distributed your money to specific families (even anonymously), those are technically gifts to individuals and require Form 709 if over the exclusion amount. For Schedule A, I recommend: 1. List the charity's name and address in the "Donee's name and address" section 2. In the description field, write something like "Anonymous gifts to individuals facilitated by [Charity Name] - recipient identities unknown" 3. Include the total amount and date of transfer 4. Attach a statement explaining the circumstances and your good faith efforts to obtain recipient information The IRS Publication 559 actually addresses situations where complete information isn't available. As long as you document what you know and explain why certain information is missing, you should be compliant. The important thing is showing transparency and good faith effort to follow the reporting requirements. Don't leave fields completely blank - always provide what information you have and explain the limitations.

I'm dealing with a very similar situation right now! Made some large anonymous donations through a community fundraiser last year and just realized I crossed the gift tax threshold. Reading through all these responses has been incredibly helpful. One thing I want to add based on my research - make sure you're clear on the timing requirements. Form 709 is due by April 15th (or October 15th with extension) of the year AFTER you made the gifts, not the year you made them. So gifts made in 2024 require filing Form 709 by April 15, 2025. Also, even if you can't identify the specific recipients, you still need to report the total value of gifts that exceeded the annual exclusion. The annual exclusion for 2024 was $18,000 per recipient, and it's $19,000 for 2025. If you made multiple anonymous gifts through the same organization, each unknown recipient still gets their own $18,000/$19,000 exclusion. I'm planning to follow the advice here about including the facilitating organization's information and attaching an explanation statement. It's reassuring to hear from others who've successfully navigated this exact situation without issues from the IRS.

One important thing no one has mentioned yet - make sure you understand your state's requirements too. While federally a single-member LLC is disregarded, some states require separate filings or have annual LLC fees regardless of federal tax treatment. Here in California, we have to pay an $800 annual LLC tax even for a disregarded entity single-member LLC. Caught me by surprise my first year!

Great thread with lots of helpful info! I'm in a similar boat - just formed my single-member LLC in Texas for rental properties. After reading through everyone's experiences, I'm definitely going to get an EIN even though it won't change my tax treatment. The point about 1099s for contractors is huge - I'll be doing major renovations and didn't realize I'd need to issue those. One question for those who've been doing this longer - when you're calculating depreciation on rental properties, does it matter whether you have an EIN or not? I know the properties still get reported on Schedule E either way, but wasn't sure if there were any depreciation advantages to having the EIN versus just using my SSN. Also really appreciate the heads up about checking state requirements separately. Texas doesn't have income tax but I should definitely verify if there are any annual LLC fees or filings I need to be aware of.

Quick question - do gambling losses count against the winnings before they're taxed? Like if I won $10,000 but lost $8,000, do I only pay taxes on $2,000?

Carmen, I've been through this exact situation! One thing that helped me was creating a simple spreadsheet with dates, locations, and amounts won/lost for each casino visit. Even if you don't have perfect records, reconstruct what you can remember - the IRS accepts reasonable estimates if you can show a good faith effort. Also, don't forget about other gambling-related expenses that might be deductible if you itemize - things like travel costs to/from the casino, meals while gambling, and even parking fees can sometimes be included as part of your gambling activity documentation. Just make sure you keep it reasonable and can justify the connection to your gambling sessions. The key is being thorough and honest. Report all winnings (not just W-2G amounts) and document your losses as best you can. If you're unsure about anything, consider consulting a tax professional who has experience with gambling income - it's worth the cost to get it right the first time!