I'm in the middle of my OIC process and the waiting is brutal!!! Submitted everything 5 months ago and still showing as "pending" whenever I check the status online. Does anyone know if calling actually speeds anything up?

I went through the OIC process last year and it was one of the most stressful but ultimately rewarding experiences dealing with the IRS. My situation was similar to yours - owed about $38,000 due to business failure and medical issues. A few key things I learned: First, be absolutely honest and thorough with your financial documentation. The IRS will verify everything, and any inconsistencies will delay or kill your application. Second, don't underestimate how long it takes - mine took 14 months from start to finish, with multiple requests for additional paperwork. I did use a tax professional for the initial application, which cost me $3,500, but it was worth it for the peace of mind. They helped me calculate a realistic offer amount ($11,200 for my $38,000 debt) and made sure all the forms were filled out correctly. One thing nobody tells you - during the application process, the IRS stops collection activities, which was a huge relief. No more threatening letters or calls. Just be prepared for the emotional rollercoaster of waiting months without updates. The acceptance letter arriving was one of the best days of my life. Don't give up hope - if your financial situation truly warrants it, the program can work. Just be patient and meticulous with your paperwork.

Has anyone actually confirmed this with a tax professional? I'm getting totally different answers from different people about how to handle the 1099K from PayPal for betting deposits.

I went through this exact same situation last year with a 1099-K from PayPal for my Caesars Sportsbook deposits. The key thing to understand is that the 1099-K is NOT a tax document that determines your income - it's just a reporting form that PayPal sends to show payment processing activity. What you actually need to report on your tax return is based on your win/loss statement from BetRivers, not the 1099-K amount. Since you had a net loss of $3,200 for the year, you'll need to look at your actual winnings vs losses from that statement. The tricky part is that even with a net loss, you still need to report any winnings as income, and can only deduct losses up to the amount of winnings (and only if you itemize deductions). Make sure you keep that BetRivers win/loss statement and all your records. The IRS knows that 1099-K forms often include non-taxable transactions like deposits, so having proper documentation of your actual gambling activity is what matters for tax purposes.

I've been helping taxpayers navigate EFTPS issues for years, and your situation is unfortunately very common. The system is notoriously finicky about exact data matches, but there are several things you can try while waiting for their "system update." First, for your immediate Q2 payment deadline, absolutely use IRS Direct Pay as others have mentioned. It's free, reliable, and doesn't require any registration - just go to irs.gov/payments/direct-pay. For the EFTPS account issues, here are the most common culprits I see: - Address formatting differences (Street vs St., apartment numbers, ZIP+4 codes) - Name variations (middle initials, Jr./Sr. suffixes, business name formatting) - Bank routing number confusion (you need the ACH routing number, not the paper check routing number) Try pulling your most recent tax return and entering EVERYTHING exactly as it appears there - every space, punctuation mark, and abbreviation. Also, clear your browser cache completely or try a different browser entirely. The 2-3 week wait time they quoted is standard bureaucratic nonsense, but don't let that stop you from calling back. Try calling right when they open (7 AM) for much shorter hold times. Ask them to read back exactly how your information appears in their system - character by character. Once you get through this initial nightmare, EFTPS is actually quite useful for scheduling future payments. Hang in there!

I feel for you - EFTPS can be incredibly frustrating when you're just trying to pay your taxes on time! I had a similar issue last year where the system kept rejecting my information even though everything seemed correct. One thing that worked for me was making sure I was entering my EIN without any dashes or spaces - just the 9 digits straight through. Also, double-check that you're using your legal name exactly as it appears on your tax returns, not any shortened or nickname versions. For your immediate Q2 payment deadline, definitely go with IRS Direct Pay like others have mentioned. It's completely free and you don't need to register - just have your bank account info ready. You can find it at irs.gov/payments/direct-pay and select "Estimated Tax" as your payment type. While you're working on getting EFTPS sorted out, you might also want to try calling them super early in the morning (like 7 AM) when hold times are much shorter. I got through in about 15 minutes calling right when they opened versus hours later in the day. Don't give up on EFTPS completely though - once you get past this initial setup headache, being able to schedule all four quarterly payments at the beginning of the year is really convenient. The system just has some quirky formatting requirements that aren't obvious upfront.

Don't forget you get to deduct 1/2 of your self-employment tax on your 1040! A lot of people miss this deduction. And if you use a portion of your home exclusively for managing these referrals, you might qualify for a home office deduction too.

Based on everything discussed here, Schedule C is definitely the right choice for your situation. I went through something similar last year with 1099-NEC income from a side consulting gig. One thing I'd add that hasn't been mentioned yet - make sure you're keeping track of when you received this income throughout the year. If this is ongoing, you might need to make quarterly estimated tax payments going forward since no taxes are being withheld from these referral commissions. The IRS expects you to pay as you go, not just at year-end. Also, since you're new to this, consider opening a separate business checking account for these referral payments and any related expenses. It makes record-keeping much cleaner and gives you better documentation if you ever get audited. Even though it's "just" $3,200, the IRS still expects proper documentation for business income and expenses. Good luck with your filing! Schedule C might seem intimidating at first, but it's pretty straightforward once you get the hang of it.

14 Has your cousin considered filing for the Streamlined Domestic Offshore Procedures? With a foreign partner involved, there might be international reporting requirements they've missed too. When I had a similar situation with my small business that had a foreign partner, we had to deal with FBAR filings and other international information reporting requirements. The foreign partner should also check if they have any US tax filing requirements based on their interest in a US LLC, even if they've never been to the US.

This is a complex situation that requires immediate attention. Your cousin is looking at significant penalties - potentially over $25,000 just for the unfiled 1065s alone ($210 per month per partner for up to 12 months, multiplied by 10 years). Here's what I'd recommend: 1. **Get professional help immediately** - Find a tax attorney or CPA who specializes in partnership taxation and penalty abatement. The foreign partner aspect adds layers of complexity with potential withholding requirements. 2. **File all delinquent returns first** - Don't wait for penalty notices. Filing shows good faith effort to comply. 3. **Reasonable cause strategy** - For penalty abatement, your cousin will need to demonstrate reasonable cause for each unfiled year. Common arguments include: reliance on professional advice, serious illness, inability to obtain records, or other circumstances beyond their control. 4. **Consider installment agreements** - Even with abatement, there may still be substantial penalties. The IRS offers payment plans for situations like this. 5. **Foreign partner compliance** - The German partner likely has US tax obligations too and may need to file their own returns. The key is acting quickly and having a comprehensive strategy. Each day of delay potentially increases penalties. A qualified professional can help navigate the penalty abatement process and potentially save thousands in penalties.