check if ur bank info was entered correctly on the return. Had similar situation last year and turned out I typed one number wrong in my account number smh

Don't panic yet! March 13th was only about a week ago, and refunds can take up to 21 days to hit your account even after the 846 code shows. Banks sometimes hold deposits for a few extra days too, especially larger amounts. Since you've already confirmed your bank info is correct, I'd give it another week before getting worried. The IRS systems have been running slower this year with all the processing changes. Your transcript looks normal - that 846 code on 3/13 is definitely your refund being sent out. If nothing shows up by March 27th (2 weeks from issue date), then definitely call the IRS refund hotline at 1-800-829-1954. But honestly, I bet it'll show up in the next few days! 🤞

these codes are starting to feel like hieroglyphics fr fr... irs needs to speak english 💀

I had the same codes last year and it turned out to be an identity verification issue. The IRS wanted to make sure I was really me before releasing my refund. Got a CP05A notice asking me to verify my identity online through ID.me. Once I completed that, my refund was released within 2 weeks. Don't panic - these codes are super common and usually resolve quickly once you respond to whatever they're asking for.

One thing nobody's mentioned - start with your most recent tax years first! The IRS typically focuses more on recent unfiled returns, and there's a 10-year statute of limitations on collecting back taxes. Also, you might not owe as much as you think. As a 1099 contractor, you can deduct business expenses that W-2 employees can't. Things like home office, equipment, supplies, mileage, health insurance premiums, and even part of your cell phone bill if you use it for work. These deductions can significantly reduce your taxable income.

I understand the panic you're feeling - I was in a similar situation a few years ago with 4 unfiled returns. The fear of jail time was consuming my thoughts daily, but I want to reassure you that actual imprisonment for non-filing is extremely rare and typically reserved for cases involving deliberate fraud or tax evasion schemes. Here's what helped me get through it: 1) The IRS has a Voluntary Disclosure Program that's designed specifically for people who come forward on their own. This shows good faith and significantly reduces the risk of criminal prosecution. 2) As a 1099 contractor, you likely have more deductions than you realize. Business expenses like equipment, software, office supplies, mileage, and even a portion of your home if you have a dedicated workspace can substantially reduce what you actually owe. 3) The IRS offers several payment options including installment agreements that can make even large tax debts manageable over time. They'd rather collect something monthly than nothing at all. The key is taking action now rather than waiting. Every month you delay, the penalties and interest continue to compound. But by addressing it proactively, you're demonstrating to the IRS that you're making a good faith effort to become compliant, which goes a long way in their eyes. You've got this - the situation is manageable, and there are people and resources available to help you through it.

Has anyone used Drake Tax software for complex trusts with timber sales? I'm trying to figure out if it will automatically handle the distribution of capital gains correctly between schedules or if I need to make manual adjustments. The software keeps giving me a diagnostic warning about capital gains distributions.

I've been dealing with similar timber sale issues in complex trusts for several clients, and I want to add a few practical points that might help. First, regarding your Schedule B Line 10 question - yes, absolutely include the $1,600 there. This is critical for ensuring the income gets the proper tax treatment at the beneficiary level rather than being taxed to the trust. One thing I'd recommend double-checking: make sure your trust document actually allows for discretionary distributions of capital gains. Some older trust documents only permit income distributions, not principal distributions (which capital gains are often considered). If your trust document is restrictive on this point, you might need different treatment. Also, since you're both trustee and sole beneficiary, document your distribution decision properly. Even though it seems straightforward, having a written trustee resolution authorizing the distribution of capital gains can help if the IRS ever questions the treatment. For the timber specifically, keep detailed records of the basis adjustments over time. With small periodic sales like yours, tracking the depletion properly becomes important for future sales. The IRS has specific rules for timber depletion that can affect your basis calculations in subsequent years.

This is a really complex area that trips up a lot of informal groups. One thing I haven't seen mentioned yet is the potential for gift tax issues. If you're collecting donations through someone's personal account and that person is then "gifting" large amounts overseas, they might hit the annual gift tax exclusion limits ($17,000 per recipient for 2023). This could create filing requirements even if no tax is actually owed. Also, be aware that some crowdfunding platforms will issue 1099-K forms to the account holder if you process more than $600 in transactions during the year. This means the IRS will expect to see that income reported somewhere on a tax return, even if it's ultimately zeroed out as pass-through funds. The fiscal sponsorship route that Madison suggested is really the cleanest solution here. It might seem like extra work upfront, but it protects everyone involved and makes your fundraising more credible to potential donors.

As someone who's been through this exact situation with our local community garden fundraising, I can't stress enough how important it is to get this right from the start. We made the mistake of just using a personal account for our first year and ended up with a nightmare at tax time when our treasurer got a 1099-K for $3,200 and had to prove to the IRS that it wasn't personal income. A few practical tips based on our experience: 1. If you do use the personal account route temporarily, open a separate account just for the fundraising. Don't mix it with personal finances - this makes record-keeping much cleaner. 2. For the t-shirt situation, document the actual cost of producing them. If a t-shirt costs you $8 to make and someone donates $40, you can show that $32 was truly charitable and $8 was payment for goods. 3. Keep communications with your overseas projects documented. Screenshots of messages, photos of completed projects, receipts from local purchases - all of this helps establish that the money was actually used for charitable purposes. The fiscal sponsorship route really is the gold standard here. We eventually partnered with our local community foundation and wish we'd done it from day one. Yes, they take a small fee (ours takes 5%), but the peace of mind and legitimacy it provides is worth every penny. Plus, donors love being able to get tax deductions for their contributions.