Def don't ignore the CP2000! Friend of mine thought his amended return would fix everything and didn't bother responding to the notice. IRS hit him with the full amount plus penalties. Took him almost 2 yrs to get it sorted. Even tho ur amended return might eventually fix it, the CP2000 system and amended return system are totally separate. Gotta respond to both or you'll be in a world of hurt. BTDT and it's not fun!

Just went through this nightmare myself last month! Got a CP2000 for $3,100 right after filing my 1040-X that showed I was owed $650. Here's what I learned the hard way: you MUST respond to the CP2000 notice even with an amended return pending. The IRS systems don't talk to each other automatically. I called the number on the notice (took 3 hours on hold but finally got through) and the agent put a collection hold on my account while they processed my amendment. She told me this is super common - they're processing millions of returns and the timing just gets wonky. Make sure to reference your 1040-X in your CP2000 response and include the date you filed it. Don't panic, but definitely don't ignore it either!

Struggling with similar issues for weeks, I finally broke down and tried claimyr.com. Got connected to an IRS agent after trying for days on my own with no success. The agent actually gave me specific info about why my refund was delayed (verification issue they never told me about!) and I was able to resolve it. If you need actual answers instead of the runaround, it's worth trying.

I'm going through the exact same thing right now! Filed in early February with EITC, WMR shows received but my transcript still says N/A after 4 weeks. It's so frustrating when you're expecting that refund and have no idea what's actually happening. Thanks everyone for explaining that this is normal - I was starting to think my return got lost in the system or something. Going to try checking on Saturday mornings like someone suggested instead of obsessively refreshing every day. The waiting game is brutal but at least now I know I'm not alone!

I might be in the minority, but for my first year with a partnership, I just bit the bullet and hired a CPA. Cost me about $800, but they handled all the K-1 generation, made sure our allocations were correct, and found deductions I would have missed. Plus they showed me exactly what they did so I could potentially DIY in future years. Sometimes paying a professional for year one is worth it just for the peace of mind and education. My CPA literally walked me through each form so I understood what was happening.

As someone who just went through this exact process for the first time, I can share what worked for me. I ended up using a hybrid approach - I used TaxAct Business to prepare the 1065 return (which automatically generated the K-1s), but before jumping in, I spent time understanding our partnership agreement and how different income/expense categories should be allocated. The key insight I wish someone had told me earlier: the K-1 forms are literally just printouts from your business tax return software. You don't create them separately - they're generated automatically once you complete Form 1065 with all your partnership details and allocations entered correctly. For a first-timer, I'd recommend either: 1) Upgrade to business tax software and take your time working through it methodically, or 2) Pay a professional for year one but ask them to walk you through the process so you understand it for next year. The worst thing you can do is guess on partnership allocations since the IRS scrutinizes these pretty carefully. Also, definitely file for an extension if you're running short on time - partnerships have a March 15 deadline, but an extension gives you until September 15 to get everything right.

Has anyone considered the non-tax implications of renouncing citizenship? My cousin did this in 2019 (not for crypto but for business reasons). He moved to Singapore and gave up his US passport. Now his parents are aging and he's having massive issues with just visiting them in the US. Getting visas is complicated, and there's always anxiety about being denied entry. Plus he can only stay for limited periods. He says if he'd understood the practical and emotional impact, he would have explored other tax strategies first. There's also the permanence factor - once you renounce, it's extremely difficult to ever get citizenship back. What if the crypto market crashes? Would giving up your passport still be worth it?

This is such a timely discussion for me. I've been dealing with crypto taxes for three years now and it's gotten increasingly complex as my portfolio has grown. The renunciation route honestly crossed my mind briefly when I saw my tax bill last year, but reading these responses really puts things in perspective. The emotional and practical costs that people are mentioning - visa complications, family separation, permanent decisions - these are things you can't put a dollar value on. I think I was so focused on the immediate tax savings that I wasn't considering the lifetime implications. The Puerto Rico option that Isabella mentioned sounds particularly interesting since you keep your US citizenship. Has anyone here actually gone through the Act 60 process? I'm curious about the practical aspects of establishing residency there - is it just about spending 183 days per year, or are there other requirements like buying property or starting a business? Also really appreciate the recommendations for taxr.ai and the various tax strategies mentioned. It sounds like there are quite a few legitimate ways to optimize crypto taxes without taking such drastic measures. Sometimes the obvious solution isn't always the best one.

My zaniest tax idea: Tax breaks based on your step count from fitness trackers. Get 10,000 steps daily for a year? 1% off your tax bill. Would incentivize healthier living which could reduce healthcare costs long term. More realistically, I'd love to see tax credits for people who don't own cars in urban areas. They're using fewer resources, creating less pollution, and not contributing to traffic congestion. Why not reward that behavior?

My crazy idea: zero taxes on the first $50k of income for EVERYONE, then a flat 33% on everything above that. No deductions, no credits, no loopholes, no exceptions. Tax return could fit on a postcard. Would solve so many problems! The complicated tax code mainly benefits the wealthy who can afford tax attorneys to find obscure deductions. A simple system would be more fair and stop wasting millions of hours on tax preparation. Plus no taxes on the first $50k would be a massive help to lower/middle income folks.