Has anyone actually passed using just IRS pubs? I started that route & got so frustrated. The language is so dense & the pubs aren't organized in a way thats helpful for learning. I ended up just buying Gleim & passed all 3 parts first try.

I actually did pass using primarily IRS publications, though I'll admit it wasn't easy! The key was creating a structured approach rather than just reading them cover to cover. What worked for me was printing out the content outlines Connor mentioned, then mapping specific sections of each publication to the exam topics. I'd read a section, then immediately try to explain it in my own words or create examples. This helped combat the dense language issue. I also joined a few Facebook groups for EA candidates where people would post questions about confusing sections - that community discussion really helped clarify difficult concepts. The IRS pubs definitely aren't written as study guides, but they contain all the information you need if you're willing to put in the extra work to organize it properly. That said, if budget allows, the commercial programs are definitely more efficient. But for those who want to go the free route like the OP, it's absolutely doable with the right strategy and a lot of patience!

The IRS is such a joke fr fr... why they gotta make everything so complicated 🤡

I'm going through this right now too! Got flagged for identity verification about 10 days ago and still waiting for the 4883C letter. From what I've researched, the IRS says it can take up to 30 days to receive the letter, but most people seem to get it within 2-3 weeks like others mentioned. The verification process itself is pretty straightforward once you get the letter - you can do it online or by phone. Just make sure you have your documents ready like Victoria suggested!

Has anyone considered using cryptocurrency or NFTs instead of gift cards for rewards? I've heard some apps are doing this to navigate around traditional gift card reporting requirements.

Based on my experience with app-based rewards programs, here are a few key considerations that might help: First, the classification really depends on how users earn points. If it's purely gameplay without purchases, the IRS typically views this as prizes/winnings rather than rebates. This means you'd likely need 1099-MISC forms for gift cards over $600 per user per year. However, there are some strategies to consider: - Keep individual gift card values under $600 annually per user to avoid reporting thresholds - Offer multiple smaller redemption options rather than large gift cards - Consider implementing a purchase-based component to your point system (even small in-app purchases) to help classify some rewards as rebates One thing that's often overlooked is the timing of when you report the gift card value - it's typically when the gift card is issued, not when it's redeemed by the user. I'd strongly recommend getting specific guidance for your exact program structure, as the details really matter here. The distinction between entertainment, loyalty rewards, and prizes can significantly impact your reporting obligations. Also worth noting - if you're handling this correctly from the start, the compliance burden isn't as scary as it initially seems. Many successful apps have navigated these requirements without losing users.

Make sure you're using a good tax software that can handle self-employment income if you're filing yourself. I use FreeTaxUSA for this exact situation (W-2 job plus side income). Also, regarding deductions, the general rule is that an expense must be "ordinary and necessary" for your business to be deductible. Transportation passes this test easily. Gym membership probably doesn't unless explicitly required. Subscriptions are a gray area - you'd need to prove they're ordinary and necessary for sperm donation specifically. Don't push the boundaries too much here. The amount you'd save on questionable deductions isn't worth triggering an audit. Transportation costs alone will still reduce your taxable income nicely.

Just a heads up - if you're using rideshare for transportation, make sure you're saving those receipts in the app! Both Uber and Lyft let you download annual summaries that break down all your rides, which makes it super easy to filter out just the business trips to the clinic. For the gym membership, I'd be really careful there. The IRS has consistently ruled that general fitness expenses are personal even when they might benefit your work. Unless the sperm bank specifically requires a gym membership in writing, I'd skip trying to deduct it. One thing I haven't seen mentioned - you might be able to deduct costs for any required medical screenings or tests that aren't covered by the clinic. Also, if you had to take time off your regular job for appointments, that lost income isn't deductible, but any parking fees or other direct costs from those visits would be. The key is keeping detailed records of everything. Even if an expense seems questionable, having good documentation puts you in a much better position if you ever get audited.

Has anyone tried ProSeries for 1065s? My accountant friend suggested it might be good for my situation (3 investment LLCs with about 30 investors total), but I haven't found many reviews from people using it specifically for investment partnerships with lots of K-1s.

I've been using TaxSlayer Pro for my investment partnership returns for the past two years and it's been solid for my needs. I manage 4 LLCs with about 60 K-1s total across them, so similar volume to what you're dealing with. The main advantages I've found: reasonably priced (especially compared to UltraTax/Lacerte), good member database that carries forward year to year, and pretty intuitive K-1 batch processing. It handles the allocation calculations well and makes it easy to review all K-1s before finalizing. One thing to note - the state filing support isn't as comprehensive as some of the higher-end options, so if you have members in obscure states that might be a consideration. But for federal 1065s and common state filings, it's been reliable. The e-filing has worked smoothly too. For SPVs with straightforward financials but lots of partners, I think it hits the sweet spot between functionality and cost. Worth checking out their trial version to see if the interface works for you.