Keep an eye on your transcript for code 971. That's the notice they sent you. Then look for code 570 which is a hold on your account. When you see code 571, that means the hold was released after verification. Then you'll see 846 which is your refund issued date! 🎉

I went through the exact same thing last year! Verified my ID online immediately after getting the letter, but it took almost 3 weeks to show up in their system. The key thing is to look for the specific codes on your transcript like others mentioned - code 971 for the notice, then 570 for the hold, and finally 571 when it's released. What really helped me was calling the dedicated ID verification line (800-830-5084) around 7 AM - that's when I had the best luck getting through. They were able to confirm my verification was in progress even when it wasn't showing up yet. The waiting is absolutely brutal, but once it processes, things move pretty quickly. Hang in there!

Has anyone tried just setting up a separate sole proprietorship for the equipment rental part? I'm wondering if I could invoice clients separately - one invoice from my service business and another from an equipment rental business with a different name and EIN.

I've been dealing with this exact issue for the past three years as a freelance DP who rents out my RED camera package. What I learned from my CPA is that the key isn't necessarily how your clients issue the 1099s, but how you can substantiate separate business activities. The IRS Publication 535 actually covers this - if your equipment rental is "incidental" to your services (meaning you primarily rent to clients you're also providing services to), then it's all considered one business subject to SE tax. However, if you can show that you have a separate equipment rental business (renting to other operators, production companies you don't work for, etc.), then you might qualify to report that portion on Schedule E. I started tracking every equipment rental separately in QuickBooks and made sure to actively market my gear rental independently. Now about 30% of my equipment income comes from rentals where I'm not providing services, which helps establish it as a separate business activity. The documentation is crucial if you get audited. Your current QuickBooks setup is a good start, but make sure you're also tracking which rentals include your services versus equipment-only rentals. That distinction could save you significant money in self-employment taxes down the road.

I was in a very similar situation - hadn't filed for 3 years and was absolutely terrified about what would happen. The good news is that if you had taxes withheld from your paychecks, you're in a much better position than you think! Here's what I learned when I finally dealt with it: The IRS isn't going to come after you criminally for this. They reserve criminal prosecution for people who are actively trying to defraud the government, not people who just procrastinated on filing. Since you had regular W-2 jobs with withholding, the IRS already knows about your income anyway. My advice: Start gathering your tax documents now (W-2s, 1099s, etc.) for all four years. If you're missing any, you can request transcripts directly from the IRS. Focus on getting the most recent 3 years filed first since those are the ones where you can still claim refunds if you're owed them. I ended up owing a small amount for one year but got refunds for the other two. The penalties weren't nearly as scary as I'd imagined, and the IRS was actually pretty reasonable to work with once I voluntarily came forward. The relief of finally having it handled was incredible - I wish I hadn't stressed about it for so long!

I understand how scary this feels, but take a deep breath - you're not going to jail over this! The fact that you had taxes withheld from your W-2 jobs actually works in your favor here because it shows you weren't trying to hide income from the IRS. Here's the reality: Criminal prosecution for tax issues is extremely rare and typically reserved for cases involving deliberate fraud, hiding large amounts of income, or filing false returns. Simply failing to file when you had proper withholding doesn't fall into that category. Since you mentioned you'd likely be owed refunds for at least 2 of those years, there are no penalties for filing late when you're due a refund. The only downside is that you can only claim refunds going back 3 years, so if any refund is from 2020, that one would be lost. For any years where you might owe money, yes there will be failure-to-file penalties (usually 5% per month up to 25%) plus interest, but these are manageable civil penalties, not criminal charges. The IRS also offers payment plans if you need them. My suggestion: gather all your tax documents for those 4 years and consider working with a tax professional who handles back taxes. They can help you file everything correctly and deal with any IRS correspondence. The sooner you get started, the sooner you'll have this weight off your shoulders. You've got this!

Has anyone tried just using both names? When I got married, I filed as "Jane Maiden-Married" since my paperwork was still processing. It went through without issues.

I just went through this exact situation a few months ago! The key thing to understand is that there's often a delay between when you submit your name change application and when it actually updates in the IRS verification system. Here's what worked for me: I called the Social Security Administration directly (yes, the wait times are brutal) and asked them to confirm what name is currently showing in their records for my SSN. They told me that even though I had submitted my paperwork, my maiden name was still the "active" name in their system until the processing was complete. I ended up filing my taxes using my maiden name, and it went through without any issues. You can still file as "married filing jointly" even while using your maiden name - the filing status is separate from the name issue. One tip: if you do need to call SSA, try calling right when they open (usually 7 AM local time) to avoid the worst of the hold times. Good luck, and don't stress too much - this is a super common issue that lots of newly married people deal with!

Just wanted to add that the IRS really looks closely at dependent claims that don't follow traditional family structures. I tried claiming my longtime roommate years ago (we had a similar arrangement where I paid all the bills and she covered other expenses). Got audited and had to repay the tax benefit plus a penalty. Make sure you have solid documentation of actually supporting them if you go this route!

Based on what everyone's shared here, it sounds like your money transfer arrangement with your roommate probably won't qualify him as your dependent under IRS rules. The key issue is that you're not actually providing his support - you're both just helping each other avoid international wire fees. For the IRS support test, you'd need to be directly paying for more than 50% of his actual living expenses like rent, food, utilities, medical costs, etc. The fact that you give him money that his family then gives to your family is more of a financial convenience than true support. Even if you were covering his living expenses directly, you'd also need to make sure he meets the gross income test (under $4,700 for 2025) and that he's not being claimed by anyone else. Plus, as others mentioned, there could be complications with his student visa status if he's international. I'd suggest keeping detailed records of who actually pays for what in your living arrangement, but based on what you've described, this probably isn't going to work for claiming him as a dependent. The IRS is pretty strict about these requirements, especially for non-family dependent claims.