When I got a CP80 last year, I also found out that sometimes the IRS cashes your check but your return gets routed to a different processing center because of something unusual on it (in my case it was claiming a special tax credit). Could explain why they have your payment but not your return.

This exact thing happened to my neighbor last year! The CP80 notice can be really scary but it's usually just a processing mix-up. Here's what worked for her: She called her bank and got a copy of the front and back of the cashed check - the back showed it was endorsed by the IRS Treasury, which proved they definitely received her payment. Then she made copies of her entire tax return and wrote a cover letter explaining the situation. The key thing is to respond quickly to the CP80 notice. Don't wait thinking it will resolve itself. Include: - Copy of your complete tax return (mark it "DUPLICATE - CP80 RESPONSE") - Copy of the cashed check or bank statement - Brief letter explaining you filed and paid on time Send everything certified mail to the address on the CP80 notice. My neighbor got a letter back in about 6 weeks confirming everything was straightened out. The IRS even apologized for the confusion! Also, definitely keep trying to call the IRS. Early morning (around 7 AM) seems to have shorter wait times. You might get through eventually and they can sometimes resolve it over the phone if you have your documentation ready.

Has anyone dealt with refinancing separate property within an LLC? We're in Washington (community property) and my husband transferred his pre-marriage rental into our LLC, but now we want to cash-out refinance it to buy another property. Would using that money for a new property in the same LLC automatically make the new property community even though the source funds came from separate property?

This is a complex area where federal tax law and state property law intersect in tricky ways. Since you're in Arizona, I'd recommend getting familiar with A.R.S. § 25-213 and § 25-214 which govern transmutation of property between separate and community status. The key issue with your wife's pre-marital properties is whether transferring them to a jointly-owned LLC constituted a gift to the marital community. Arizona courts look at several factors: the intent at time of transfer, how the LLC is managed, how profits/losses are shared, and whether community funds were used for improvements or debt service. For basis step-up planning, this distinction is crucial. If those 4 properties are now community property, both spouses' interests get stepped-up basis at the first death. If they remained separate property, only the deceased spouse's portion gets the adjustment. One practical tip: consider having your LLC operating agreement amended to clearly state the separate vs community character of each property's contributed basis, even if you don't change the actual ownership percentages. This creates better documentation for future tax purposes while preserving your options for estate planning strategies. You might also want to explore whether a spousal property agreement could clarify the status of these properties going forward, especially if you're doing broader estate planning.

Has anyone used TurboSelf-Employed for this kind of situation? I'm trying to figure out the easiest way to file with all these business expenses.

One thing to keep in mind is that since you're dealing with expensive camera equipment, you might want to look into Section 179 deduction vs. depreciation. For 2024, you can deduct up to $1,220,000 worth of qualifying business equipment in the year you purchase it instead of depreciating it over several years. This could be really beneficial for your lenses and tripod since they're probably under that threshold. Also, make sure you can prove the business use percentage if you ever use that equipment for personal photography too. The IRS will want to see that you're only deducting the portion actually used for your paid gigs. Keep a log of when you use the equipment for business vs. personal use - it'll save you headaches if you ever get audited. Your $800 in income definitely qualifies this as a business activity, so you're good there. Just make sure to report everything properly on Schedule C.

The IRS also has a tool on their website where you can look up your advance Child Tax Credit payments if you can't find Letter 6419. Just go to IRS.gov and search for "Child Tax Credit Update Portal" - you can log in and see exactly how much you received in advance payments throughout the year. This is super important to get right because if you enter the wrong amount on Schedule 8812, it'll throw off your entire refund calculation. I learned this the hard way when I accidentally used the wrong number and ended up owing money when I should have gotten a refund!

I had this exact same confusion when I was doing my taxes! The key thing to remember is that Schedule 8812 is designed to work in stages. First it calculates your total eligible Child Tax Credit for the year (which is what you're seeing on line 14i), then it accounts for any advance payments you already received. So that $9,400 on line 14i isn't your final refund amount - it's just showing that based on your two qualifying children, you're eligible for that total credit. The form then subtracts your $3,600 in advance payments on line 14j to show your remaining credit. Make sure you have your Letter 6419 handy (or check the IRS Child Tax Credit Update Portal online) to get the exact advance payment amount. Getting that number wrong will definitely throw off your calculation. Once you enter the correct advance payment amount and complete the rest of the form, you should see your actual remaining credit amount, which should be much closer to what you were expecting.

Has anyone dealt with this by sending a letter through certified mail? I'm in a similar situation and wondering if regular mail is good enough or if I should spend the extra money on certified mail with return receipt.

I went through almost the exact same thing last year! The IRS penalty notice made no sense since I had clear proof of payment before the deadline. Here's what I learned from my experience: First, get your account transcript from the IRS website (irs.gov) - it's free and shows exactly how they've recorded your payments. In my case, the transcript revealed that my payment was applied to the wrong tax year due to a data entry error on their end. Second, gather ALL your payment documentation - bank statements, confirmation numbers, screenshots from your tax software, anything that shows the payment date and amount. The IRS will need this to correct their records. Third, respond to the notice in writing with copies of all your proof. I sent mine certified mail with return receipt (costs about $7 but gives you proof they received it). In my letter, I requested penalty abatement under "reasonable cause" since I had paid on time and it was their processing error. The whole process took about 6 weeks, but they completely removed the penalty and sent me a letter confirming the correction. Don't just ignore it hoping it goes away - these penalties can grow with interest if not addressed promptly. The frustrating part is that these processing errors happen more often than the IRS likes to admit, especially during busy filing season. But they will fix it once you provide the documentation.