I'm really glad I stumbled across this thread! I've been working as a tax advisor for about 8 years, and I see clients panic about Form 13873-E notices all the time. It's completely understandable - these forms look intimidating and the language is pretty technical. What you're experiencing is absolutely normal and legitimate. The Form 13873-E is the IRS's way of saying "we got your transcript request, but something wasn't filled out correctly." It's actually a good thing that the IRS has this system in place - it prevents unauthorized access to your tax information by requiring everything to be completed properly. Your HELOC timeline is a dead giveaway that this is exactly what happened. Lenders almost always request tax transcripts as part of their income verification process, and clerical errors on these forms are incredibly common. I'd estimate that about 15-20% of my clients who apply for mortgages or major loans end up getting one of these notices. The silver lining is that once your lender resubmits the corrected 4506-C, the process usually moves very quickly. In my experience, clients typically get their loan processes back on track within 3-5 business days after the correction is submitted. Don't let this stress you out over the weekend - it's really just routine paperwork cleanup that your loan officer deals with regularly!

Just wanted to add my experience as someone who works in mortgage processing. I see Form 13873-E notices daily, and your situation is textbook - HELOC application 3 weeks ago, now getting this notice. It's almost certainly just a minor error on the 4506-C form your lender submitted. The most common mistakes I see are: - Wrong date format (MM/DD/YYYY vs DD/MM/YYYY) - Missing middle initial when it's on your tax return - Checking the wrong boxes for tax year or form type - Signature issues (especially with joint filers) Your loan officer will know exactly what to do with this. They'll compare the rejection notice against their original submission, fix the error, and resubmit. Usually takes 2-3 business days to get the transcripts back once corrected. Pro tip: When you call Monday, have the 13873-E form in front of you. The error codes on it will tell your loan officer exactly what went wrong, making the fix much faster. This definitely won't delay your HELOC closing - we build buffer time into our timelines specifically for these kinds of routine corrections.

Great thread! I'm actually going through the EFIN application process right now for my own side practice. One thing I haven't seen mentioned yet - make sure you understand the bonding requirements for your personal EFIN. The IRS requires a surety bond (usually $5,000 minimum) which can add to your startup costs. Also, if you're planning to offer direct deposit or refund transfer services to clients through your personal EFIN, there are additional requirements and fees with the bank partners. For software recommendations, I've been looking at TaxSlayer Pro - they have a pay-per-return option that might work better than the flat annual fee if you're uncertain about volume in your first year. Has anyone tried their platform for smaller practices?

Just wanted to add my experience as someone who's been operating with dual EFINs for over 5 years. Everything mentioned here is spot-on, but I'd emphasize one additional point that saved me a lot of headaches: set up completely separate QuickBooks accounts (or whatever accounting software you use) for tracking the income and expenses from each EFIN. This becomes crucial during tax season when you're preparing your own Schedule C - having clean separation makes it much easier to pull reports and ensures you don't accidentally mix business expenses. I learned this the hard way my first year when I tried to track everything in one system with different classes/categories. Also, don't forget about quarterly estimated taxes on your Schedule C income! The self-employment tax can catch you off guard if you're not setting aside money throughout the year. I typically set aside about 30% of my side practice income to cover both income tax and SE tax. One last tip: consider getting a separate business phone line or Google Voice number for your personal EFIN clients. Helps maintain that professional separation and makes it easier to track business vs personal calls for expense purposes.

Just a quick tip - make sure you keep EVERY document related to this transaction. The county's initial offer letter, any negotiation correspondence, closing documents, receipts for any expenses related to the transaction, and especially documentation showing the original purchase price of your property. I went through this last year and created a complete file with all these documents which saved me when the IRS questioned my capital gains calculation. Also take photos documenting exactly what portion of your property is being taken before any work begins!

As someone who recently went through a partial property taking for a utility easement, I want to emphasize the importance of understanding the timing rules for capital gains. Since this is an involuntary conversion due to eminent domain, you actually have some special options that might help reduce your tax burden. Under IRC Section 1033, you may be able to defer the capital gains by reinvesting the proceeds into "like-kind" property within a specific timeframe (usually 2-3 years from the end of the tax year you received the compensation). This could be particularly beneficial given that your gain ($66,300 as calculated above) would likely exceed the prorated Section 121 exclusion. Also, don't forget that you can add any legal fees, appraisal costs, and other expenses related to fighting or negotiating the taking to your cost basis, which would reduce your taxable gain. I ended up saving about $3,000 in taxes by properly documenting these additional costs. Given the complexity and the significant dollar amount involved, I'd strongly recommend consulting with a tax professional who has experience with eminent domain cases before filing. The potential tax savings from getting this right could easily justify the consultation fee.

As someone who just went through my first year of S Corp 1099 filings, I can confirm your accountant is right but there are some nuances that might help reduce your stress. The good news is you don't need 1099s for EVERYONE on that list. If your hairstylist works at a salon that's incorporated, or if you paid any of these vendors via credit card or business payment platforms like Square, those don't require 1099s from you. Here's what saved me time: I created a simple spreadsheet tracking each vendor, how I paid them (cash/check vs credit card), their business structure (got this from W-9s), and total annual payments. This helped me quickly identify who actually needed 1099s versus who didn't. Your friend who's never done this might be flying under the radar, but the penalties for missing 1099s can be substantial ($50-$280 per form depending on how late). Better to be compliant from the start. One tip: for vendors you'll work with regularly, get their W-9 forms upfront when you first hire them. Makes tax season way less stressful than scrambling to collect everything in January.

I went through this exact same confusion when I started my S Corp two years ago! Your accountant is absolutely correct - S Corps do need to issue 1099-NECs to qualifying service providers, but the key word is "qualifying." Here's what helped me sort through the maze: Start by understanding that you DON'T need to issue 1099s to corporations, LLCs taxed as corporations, or for payments made via credit card/third-party processors. This eliminates a lot of vendors right off the bat. For your entertainment industry expenses like hair/makeup, these can absolutely be legitimate business deductions if they're specifically for performances, auditions, or professional appearances. Just make sure you can document the business purpose - I keep notes linking each service to specific gigs or professional events. The W-9 collection process gets easier once you establish it as standard practice. I now require W-9s before making any payments over $100 to new vendors. Most professionals understand this is normal business procedure, though some personal service providers might need a gentle explanation about why you need their tax info. Don't feel bad about not knowing this initially - the entertainment industry is notorious for informal payment practices, but as an S Corp you need to follow corporate tax rules. It's a learning curve but you'll get the hang of it!

One thing nobody's mentioned - if your accounts are in a country that has a tax treaty with the US, check if there's any relief available under that treaty. For example, some countries have agreements that reduce or eliminate penalties for certain types of accounts. I discovered this after stressing for weeks about my accounts in Singapore. Turns out there were specific provisions that applied to my situation.

I went through this exact same situation about 2 years ago - resident alien with foreign accounts that I had no idea needed to be reported. The panic is real, but you're taking the right steps by addressing it proactively. A few things that helped me get through it: 1. The Streamlined Filing Compliance Procedures are specifically designed for situations like yours. Since you're a US resident, you'll likely use the Streamlined Domestic Offshore Procedures, which has a 5% penalty on the highest aggregate account value (but often waived for good faith efforts). 2. For the money transfers that inflated your maximum balances, document everything clearly in your statement. The IRS understands that temporary transfers can create high maximum values - just be transparent about what happened. 3. Don't worry too much about the exact interest amounts if they were minimal. Estimate as best you can from your records and note in your filing that these are good faith estimates due to lack of proper tax documents from foreign institutions. 4. Consider consulting with a tax professional who specializes in international compliance, especially given the 6-year lookback period. The cost might be worth it for peace of mind and to ensure everything is filed correctly. You're not alone in this - thousands of people discover these requirements late. The key is demonstrating that your failure to file was non-willful, which it clearly was.