Make sure you get things in writing from that sleazy preparer if possible! I went through something similar and the texts where my preparer admitted to "being creative" with my deductions were crucial evidence that I wasn't trying to commit fraud. Also, don't forget to check your state tax situation! If your federal returns were messed with, chances are your state returns have issues too. My federal audit triggered a state audit automatically, and I wasn't prepared for that.

I'm so sorry you're going through this - it's incredibly frustrating when someone you trusted puts you in this position. The good news is that you're taking all the right steps, and the IRS does understand the difference between taxpayers who were deceived versus those who intentionally committed fraud. A few additional thoughts based on what others have shared: 1. Document everything with timestamps - not just emails, but also phone calls (write down dates, times, what was discussed). This creates a clear timeline showing your good faith efforts. 2. Consider requesting a copy of your preparer's PTIN (Preparer Tax Identification Number) history from the IRS to see if there were any prior complaints against him. This could strengthen your case that you weren't aware of his practices. 3. When you meet with the auditor, bring a written statement outlining exactly what happened, including how you discovered the fraud and what steps you've taken to correct it. Being organized and proactive will work in your favor. The fact that you refused his suggestion to lie to the IRS and that you're voluntarily correcting the other years shows clear intent to comply. Criminal prosecution is extremely rare for cases like yours where taxpayers were victims of preparer fraud and are cooperating fully. You're doing everything right - stay the course and keep documenting everything!

Doesn't the new 199A deduction make S corps less advantageous than before? I thought the QBI deduction gives sole props some of the same benefits without all the S corp hassle?

I went through this exact same situation two years ago and learned some hard lessons about timing that might help you. Like others have said, you definitely can't retroactively apply S Corp election to income already earned as a sole proprietor - the IRS is very strict about this. However, I'd strongly recommend forming your LLC in December rather than waiting until January. Here's why: even though the tax benefits won't apply to 2025, you'll have liability protection starting immediately, and more importantly, you can get all your business banking and accounting systems set up during the slower December period. One thing I wish someone had told me - start tracking your business expenses more meticulously now if you aren't already. When you switch to S Corp status, having clean books becomes much more important, and the IRS scrutinizes reasonable compensation heavily. Also, consider setting aside extra money for estimated taxes in Q1 2026. The payroll taxes and timing differences can create some cash flow challenges in your first quarter as an S Corp if you're not prepared for it. The savings are definitely worth it at your income level - I saved about $7,000 in my first year after accounting for the extra costs. Just wish I had planned the transition better!

Anyone else notice TurboTax keeps pushing their "live expert" add-on now? I tried it last year and it was... meh. The "expert" seemed to just be reading from the same help screens I could access myself.

I made the jump from TurboTax to a CPA when my income hit around $160k, and honestly wish I'd done it sooner. The biggest eye-opener wasn't just finding more deductions, but learning about tax strategies I never even knew existed. My CPA showed me how to optimize my 401k contributions, set up a backdoor Roth IRA (which TurboTax never suggested), and restructure some investments to be more tax-efficient. The first year alone, these strategies saved me more than double what I paid in CPA fees. At your income level, you're probably hitting some phase-out thresholds for certain deductions and credits that TurboTax might not explain clearly. A good tax pro can walk you through these and help you plan ahead for next year too. Even if you decide to go back to software later, having a professional review your situation once during this big income change could be really valuable.

I went through this EXACT same thing last week! I was literally checking my Credit Karma account every hour after seeing the fees taken out. It took exactly one full business day for mine to show up - fees were taken Tuesday morning and the deposit hit Wednesday around 10am. I was so worried because I had bills scheduled to auto-pay! The waiting is seriously the worst part, especially when you can see that they've already taken their cut but you're still waiting for yours. Hang in there!

I'm dealing with this same situation right now! Filed with TurboTax, got the refund advance in February, and just saw the fees come out this morning. It's reassuring to see so many people going through the exact same process. Based on what everyone's sharing, it sounds like 1-2 business days is pretty standard for the remaining balance to hit Credit Karma. I'm going to try to be patient and check again tomorrow evening. Thanks for asking this question - I was starting to worry something was wrong with my deposit!

Just wait for your regular refund date and skip all this advance nonsense. The IRS is actually pretty fast these days if you file electronically and use direct deposit.

I actually went through this exact situation last month. Yes, you definitely need to open a Credit Karma Money account - there's no way around it anymore since Intuit owns both companies. The good news is the account is completely free with no fees or minimum balance. The advance amount depends on your refund size but it's usually a decent chunk. Just be aware that once you get the advance, you're locked into keeping that account open until your full refund processes, otherwise they can hit you with penalties. Overall it worked fine for me but definitely feels like they're forcing you into their ecosystem.