The IRS NEVER asks for power of attorney FOR THEMSELVES!! This is almost certainly a SCAM. The IRS doesn't work this way. They might ask you to get representation through Form 2848 but they don't ask for power over your affairs!!

@Diego, I understand your confusion - the terminology around tax forms can be really misleading! Based on what you're describing, this is almost certainly Form 2848 (Power of Attorney and Declaration of Representative), which is NOT you giving power to the IRS, but rather you designating someone to represent YOU when dealing with the IRS. This is actually a protective measure for taxpayers. When tax disputes get complex, the IRS often recommends (or requires) that you have professional representation - like a CPA, enrolled agent, or tax attorney. Form 2848 authorizes that professional to speak with the IRS on your behalf, access your tax records for the specific years/issues you designate, and handle correspondence about your case. You maintain full control - you choose who represents you, you can limit what they're authorized to do, and you can revoke their authority at any time with Form 2848-R. The IRS isn't asking for control over your affairs; they're asking you to get proper representation to help resolve your dispute more efficiently. Before signing anything, make sure you understand exactly which form they want and what it's for. If you're still unsure, consider calling the IRS directly or consulting with a tax professional who can review the specific documentation they sent you.

Let me clarify something important from my experience as someone who processes payments: there's a HUGE difference between personal and business use of Zelle! If your brother is running an actual furniture business, he is REQUIRED to report that income regardless of whether Zelle generates a 1099 or not. All business income must be reported to the IRS - the method of payment is irrelevant. Zelle's terms of service actually prohibit using it for commercial purposes in many cases. Many banks limit Zelle to personal use only, and businesses using it for commercial transactions might be violating the terms of service. Your brother should seriously consider switching to a proper payment processor for his business that provides proper documentation and reporting. It'll make his tax life WAY easier and keep him from potentially violating service terms.

I'm dealing with a similar situation with my landscaping business and had to learn about this the hard way. Here's what I found out after consulting with my CPA: Zelle is considered a "bank-to-bank transfer" service, so it doesn't fall under the same 1099-K reporting requirements as third-party payment processors like PayPal or Venmo. However, this doesn't mean the income is hidden from the IRS - your brother's bank statements will show all these deposits, and during an audit, the IRS can easily see the pattern of business income. The bigger issue is that using Zelle for business transactions creates a documentation nightmare. There are no merchant protections, no automatic categorization, and minimal transaction details. I switched to Square after my accountant basically begged me to stop using Zelle for client payments. Your brother should definitely start transitioning to a proper business payment system soon. The convenience isn't worth the potential headaches during tax season or if he ever gets audited. Plus, many banks do have policies against using Zelle for commercial purposes, so he could potentially have his account flagged or restricted. Bottom line: he needs to report ALL that income regardless of how he received it, and he should keep detailed records of every transaction with client names and services provided.

I'm paranoid about this too! My parents send me like $500 a month to help with expenses while I'm in school and my roommate Zelles me for utilities. Probably over $10k in total Zelle payments. Am I screwed??

Great question! I see a lot of confusion about this topic. The key thing to remember is that the $600 threshold is just for reporting requirements - it doesn't mean everything over $600 is taxable income. Here's what you need to know about your specific situations: **Rent splitting with roommates**: Not taxable. You're acting as a pass-through - collecting money to pay a shared expense. This isn't income to you. **Concert ticket reimbursements**: Not taxable. Friends are just paying you back for money you spent on their behalf. **Gifts from parents**: Not taxable to you as the recipient. Gift tax rules apply to the giver, not the receiver, and even then only for very large amounts. **Computer building hobby**: As long as you're truly not making a profit and just getting reimbursed for parts, this isn't taxable income either. The important thing is to keep good records showing what each payment was for. If you ever receive a 1099-K, you may need to explain the difference between the total reported and your actual taxable income when filing your return. Most tax software now has sections specifically for this. Don't stress too much - the IRS isn't trying to tax legitimate personal transfers and reimbursements!

Has anyone here used TurboTax for this kind of situation? I also get a car allowance from my employer AND use my car for my side business. Wondering if TurboTax handles this well or if I need to pay for a CPA this year.

I went through this exact situation last year with my consulting business and W2 job that provided a vehicle allowance. The key thing to understand is that you absolutely CAN claim depreciation on the business portion of your vehicle even while receiving a W2 stipend - they're completely separate tax situations. Here's what worked for me: I calculated my total business mileage (excluding the W2 job miles since that's covered by the stipend) and divided by total miles driven to get my business use percentage. For a $45k truck, if you use it 60% for your own business, you can depreciate 60% of the cost. Keep detailed mileage logs with dates, destinations, and business purposes. I use a simple spreadsheet that tracks: date, starting odometer, ending odometer, destination, and whether it's personal, W2 job, or my business. This documentation is crucial if you're ever audited. One more tip - consider whether your truck qualifies as a heavy vehicle (over 6,000 lbs GVWR) because you might be able to take a larger Section 179 deduction in the first year instead of spreading depreciation over several years. Just make sure your business use percentage stays above 50% to qualify.

Hey I just went through this exact situation last week! One thing nobody mentioned - take screenshots of EVERYTHING. The confirmation page when you submit, the email confirmation, everything. I had an issue last year where the brokerage claimed they never received my application even though I submitted before the deadline. My screenshots saved me.

This is such a stressful situation but you're not totally screwed! I went through something similar two years ago. The key thing is getting that application submitted TODAY - the IRS looks at when you established the plan (submitted paperwork), not when it gets processed. A few quick tips since you're down to the wire: - Fill out the application completely - incomplete apps don't count for establishment date - Get confirmation numbers/screenshots of everything - Email yourself copies of all documents with timestamps - If possible, call the brokerage to confirm they received your submission The funding part you can worry about later - you have months to actually transfer money. Focus on getting that paperwork in before midnight and you'll be fine! Good luck!