I'm an IRS employee and want to clarify a few important points about tax resolution companies and your options: First, regarding your contract cancellation - you should immediately send written notice via certified mail AND email stating you're canceling within any applicable cooling-off period. Even if you're past 3 days, many states have consumer protection laws that may still apply. More importantly, you likely don't need an expensive tax resolution service. For back taxes from 2022-2023, the IRS offers several payment options directly: - Online Payment Agreements (up to $50k) at irs.gov - Currently Not Collectible status if you're experiencing financial hardship - Offer in Compromise for qualifying situations Before paying thousands to any company, try calling our Practitioner Priority Service at 866-860-4259 (if you have a tax professional) or the main taxpayer line. Yes, wait times are long, but the advice is free and authoritative. Most "tax resolution" work involves filling out forms you can complete yourself or with a local CPA for much less money. Don't let high-pressure sales tactics panic you into expensive contracts when direct IRS payment plans might solve your issue for free.

I'm really glad you found this community and are getting so much helpful advice! As someone who has dealt with IRS issues myself, I wanted to add a few practical points that might help with your immediate situation. First, when you send that cancellation notice (and please do it TODAY), make sure you include the exact date and time of your original consultation call. This helps establish a clear timeline if they try to claim more "work" was performed than actually happened. Second, if you still need help with your 2022-2023 tax issues after cancelling this contract, consider starting with the IRS's own online tools first. The Online Payment Agreement tool at irs.gov can handle payment plans up to $50,000, and it's completely free. You might be surprised how straightforward it is compared to what these companies make it seem. Also, document what specific promises they made during that radio ad that drew you in. If they advertised "affordable solutions" or "work with your budget" but then presented a $3,200 bill, that's additional evidence of deceptive marketing practices you can reference in your cancellation letter. The stress you're feeling right now is completely understandable, but you're taking all the right steps. These companies count on people being too overwhelmed to fight back, but you have strong consumer protections on your side. Stay firm and don't let them guilt you into keeping a contract you can't afford!

This exact thing happened to me too! Such a frustrating situation but you're definitely not alone. The video verification route that others mentioned is absolutely your best bet - I just did it myself about a month ago and while it was annoying to wait, the actual process was pretty smooth. Make sure you're in a really well-lit area and have your physical driver's license ready (not the mobile version). Also keep a utility bill nearby just in case they need address verification. The whole thing took maybe 20 minutes including wait time. Once you get back in, seriously don't skip setting up those backup codes and maybe add a secondary email too - learned that lesson the hard way! The ID.me system is such a pain but unfortunately we're all stuck with it for IRS access. Hang in there, you'll get through this! 🙂

Ugh, I've been in this exact situation before! Lost my phone during a move and couldn't get into ID.me for weeks. The video verification is definitely your quickest solution - I know it seems like a hassle but it's actually pretty straightforward once you get connected. Make sure you have your physical driver's license (they won't accept digital versions), good lighting is crucial, and maybe have a recent utility bill ready just in case they ask for address verification. The wait time can vary but it's usually around 15-20 minutes. Once you're back in, immediately download those backup codes and save them somewhere secure - I keep mine in both a password manager and written down in a safe place. Also consider setting up multiple authentication methods so you never get locked out like this again. The whole ID.me system is honestly terrible but unfortunately it's what we're stuck with. You'll get through this! In the meantime, you can also request your transcript by mail as backup - takes longer but at least you'll have it coming while you sort out the ID.me mess.

This is a really common confusion! I went through the exact same thing last year. The key thing to understand is that if your plan through Aetna is truly "free" (meaning you're not paying premiums and didn't receive advance premium tax credits), then you wouldn't get a 1095-A form regardless of any dollar threshold. The 1095-A is specifically for people who purchased insurance through the Health Insurance Marketplace AND received premium tax credits that need to be reconciled on their tax return. If you have a free plan, it's likely either Medicaid coverage or some other type of subsidized plan that doesn't involve the Marketplace premium tax credit system. When FreeTaxUSA asks about the 1095-A, you can safely indicate you don't have one. The software is just being thorough by asking about all possible tax forms. Most people with employer coverage or Medicaid don't need this form at all. You should be able to proceed with your return without any issues once you tell the software you don't have a 1095-A.

I work as a tax preparer and see this confusion every tax season! You're absolutely right to be puzzled - Aetna's customer service gave you incorrect information about the $600 threshold. That threshold doesn't exist for 1095-A forms at all. Here's what's actually happening: Since you have a free health plan through Aetna, you most likely have Medicaid managed care coverage (where Aetna administers your state Medicaid benefits). Medicaid coverage doesn't generate 1095-A forms because it's not purchased through the Health Insurance Marketplace and doesn't involve premium tax credits. The 1095-A is exclusively for people who bought insurance through Healthcare.gov or their state's marketplace AND received advance premium tax credits that need to be reconciled on their tax return. Your free Aetna plan falls into a completely different category. When FreeTaxUSA asks about the 1095-A, simply select that you don't have one or that it doesn't apply to your situation. The software will move on and you can complete your return normally. You're not missing anything important - you just don't fit the profile of someone who would receive this particular form.

Has anyone mentioned Section 121(c) partial exclusion? If the primary reason for the sale was your grandmother's death (which counts as an unforeseen circumstance), you might qualify for a partial exclusion of gain based on how long you used it as a primary residence during the 5-year period ending on the date of sale. The formula would be: (shorter of: time used as primary residence during 5-year period OR time between event and sale) ÷ 2 years × $250,000 exclusion So even if you don't get the full exclusion, you might get a partial one that could save you significant taxes!

One thing that hasn't been mentioned yet is the importance of documenting your timeline and expenses properly for the IRS. Given the complexity of your situation with the transition from personal residence to rental to family elder care, you'll want to create a clear timeline showing: 1. When you moved out and converted to rental property 2. When your uncle's care situation began and your sister moved in 3. All expenses you paid during each period (mortgage, insurance, repairs, improvements) 4. Documentation of your uncle's medical condition and care needs 5. When your uncle passed and your sister moved out 6. Timeline of preparing the house for sale Even though you mentioned not having formal elder care documentation, gather what you can - medical records showing your uncle's condition, any correspondence with doctors about his care needs, receipts for medical equipment or home modifications, etc. The IRS will want to see that this was a legitimate medical situation, not just a convenient family arrangement. Also consider getting a CPA who specializes in real estate transactions. The combination of depreciation recapture, potential partial exclusions, and the elder care aspect makes this complex enough that professional help could save you more than it costs.

My company handles this by having a 14-day rule. If an employee works in a state for less than 14 days in a calendar year, we don't bother with withholding for that state. If it's over 14 days, we set up proper withholding. This isn't technically 100% compliant with every state's laws, but it strikes a balance between administrative sanity and reasonable compliance. We document everything so if there's ever an audit, we can show our good-faith effort to comply with the complex patchwork of state laws. Different companies have different risk tolerances. Your friend's husband's company might be taking a more aggressive position, which isn't uncommon.

This is such a timely discussion! I'm a freelance IT consultant who travels to client sites across multiple states, and I've been wrestling with this exact issue for years. What I've learned through painful experience is that the "official" rule and the "practical" reality often don't align. Technically, yes, you're supposed to file in every state where you earn income, but the enforcement and thresholds vary wildly. One thing I'd add to the great advice already shared: keep meticulous records of your travel dates and work locations. Even if you decide to take a more conservative approach like Ian's 14-day rule, having detailed documentation is crucial if you ever face an audit. Also, don't forget about potential double taxation issues. Some states don't give full credit for taxes paid to other states, so you could end up paying more than if you just filed in your home state. This is where those reciprocity agreements Lucas mentioned become really valuable. For Eleanor's original question about whether most companies actually follow through - in my experience, it's about 50/50. Larger companies with dedicated tax departments usually comply, smaller companies often take calculated risks. Your tax advisor and legal counsel are being appropriately cautious, which is probably the right approach for a business owner.