Warning from someone who's been there: I ignored a CP2000 notice dated January 15, 2023, thinking I'd deal with it after I got my refund. Big mistake. By February 28, 2023, they had flagged my account, and my refund that should have arrived by March 7, 2023, was held until July 22, 2023. Even after I responded on April 5, 2023, it took them 3 more months to process everything and release my refund. Don't be like me - respond by April 1st at the latest, not right at the deadline. The IRS moves at glacial speed, but they're very efficient at holding your money.

Hey there! I'm dealing with something similar right now - got my CP2000 notice about three weeks ago for my 2022 return. What I've learned from calling the IRS (after waiting forever on hold) is that the key timing factor is whether you respond before the deadline. In my case, they told me that as long as I respond by the date on the notice with proper documentation, my 2023 refund should process normally. The agent explained that CP2000 notices are handled by a different department than current year refunds, so they don't automatically freeze everything. However, she did warn me that if I miss the deadline or if there are any complications with my response, that's when they might put a hold on future refunds. So definitely don't wait until the last minute like I almost did! One thing that helped me was organizing all my 2022 tax documents first before calling, so I could reference specific forms and amounts while talking to them. Made the conversation much more productive than my first call where I was just panicking. Good luck with your response - sounds like you're being proactive about it which is exactly what you should be doing!

Have you considered the option of renouncing just before the 8-year mark? If you haven't hit that threshold yet, the exit tax situation is considerably simpler. It's worth looking at exactly where you are in that timeline.

I went through a similar situation about 3 years ago when I moved to Dubai (also 0% crypto tax). The key thing to understand is that as long as you maintain your green card, you're stuck with US tax obligations regardless of any tax treaty benefits. What really caught me off guard was the timing aspect - if you're planning to sell during a bull market, you need to factor in estimated quarterly payments to the IRS even while living abroad. I made the mistake of thinking I could just settle up at year-end and got hit with underpayment penalties. Also, don't overlook state tax implications if you haven't properly established non-residency from your previous state. Some states (looking at you, California) are notoriously aggressive about claiming you still owe state taxes even after moving internationally. My advice: get professional help BEFORE you make any moves. The exit tax calculations are complex, and there are strategies around timing your departure and asset sales that can save you significant money. I wish I'd consulted a specialist earlier instead of trying to figure it out myself.

One option nobody's mentioned - if your LLC hasn't done anything, consider formally dissolving it with your state instead of dealing with ongoing filing requirements. I had a similar situation and just closed mine down. The process varies by state but usually involves filing articles of dissolution and a final tax return. Once properly dissolved, you stop having the annual filing obligations. Much better than paying fees and filing returns year after year for something you're not using.

This is exactly the situation I was in with my LLC! I formed it in early 2023 with big plans but life got in the way and it sat completely dormant. Like you, I had zero income, zero expenses, absolutely nothing. I ended up having to file Form 1065 anyway - the IRS doesn't care if you had no activity, they still want that return. The good news is it's pretty straightforward when there's nothing to report. You'll basically be putting zeros everywhere and attaching a statement explaining the lack of activity. For the penalties, I was looking at about $420 total ($210 per partner for each month late), but I successfully got first-time penalty abatement. The key is to file ASAP and include a letter explaining that you genuinely didn't know about the filing requirement for inactive businesses. Be honest about the situation and your clean tax history. One thing to watch out for - make sure you check if your state has any requirements too. Some states charge annual fees regardless of activity level. Better to find out now than get surprised later!

Ugh I got audited last year and this exact issue came up. My advice is to take photos of ALL receipts where you claimed business expenses and store them digitally by date. I had to go through hundreds of receipts during my audit and the ones I couldn't find or that were too faded to read were automatically disallowed as deductions.

Great thread! I'm dealing with this exact same situation with my freelance graphic design work. One thing I learned from my accountant is that you should also keep a simple business expense log alongside your receipts. Just a spreadsheet with columns for date, vendor, total amount, business portion, and business purpose. This way if you ever get audited, you're not just relying on highlighted receipts - you have a clear paper trail showing your thought process for each deduction. The IRS loves documentation that shows you were being deliberate and organized rather than just guessing. Also, don't forget that you can deduct the business portion of things like gas when you're making those mixed shopping trips! If you drove to Target specifically to buy business supplies but also grabbed personal items while there, you can still claim the mileage as a business expense.

The whole system is broken fr. They expect us to wait months while bills pile up smh

Congrats on getting through to an agent! That's half the battle right there. From my experience, once they actually remove the freeze code, you're usually looking at 1-3 weeks for the refund to hit your account. The timing really depends on which freeze code you had and how backed up their processing is. I'd suggest checking your transcript every Friday morning to see if the 846 code (refund release) shows up. That's when you'll know it's officially on its way. Hang in there - you're almost at the finish line after waiting since February!