The IRS did something similar to my girlfriend last month! They claimed she hadn't filed for 2020 and 2021, but she definitely had and even had her copies and confirmation numbers. Make sure you keep ALL your tax records, especially confirmation numbers if you e-file! When you get your issues resolved, request an account transcript for all the years in question. It'll show everything that's happened with your account and any remaining balances. You can get these online now through the IRS website if you create an account.

Was in a similar situation in January. Recommendations: 1. Request transcripts for ALL years in question 2. File form 911 for Taxpayer Advocate help 3. Check if you qualify for First Time Penalty Abatement 4. Set up payment plan ASAP (even tiny payments) 5. Document EVERYTHING 6. Make sure ALL your addresses are updated with IRS Good luck!

Don't overlook the basis adjustment issues with QSBS when gifting. If you gift shares to a trust, the trust takes your basis (carryover basis), but if you wait and the shares pass at death, the basis gets stepped up to fair market value. This means that if your primary goal is QSBS stacking, gifting during life makes sense. But if you expect the value to grow beyond the $10M QSBS exclusion per trust, you might be better off keeping some shares to pass at death to get the basis step-up. Also, make sure you're monitoring the "active business" requirement - if your company starts accumulating too many investments or has too much passive income, you could jeopardize the QSBS qualification altogether.

This is such a timely discussion! I'm dealing with similar QSBS planning questions for my SaaS company. One thing I haven't seen mentioned yet is the importance of getting a qualified appraisal done before making any gifts to trusts. The IRS pays close attention to valuation discounts when gifting private company shares. Since you're gifting minority interests in a closely-held company, you can often apply discounts for lack of control and marketability - sometimes 20-40% depending on your company's specifics. This means you can gift more shares while using less of your lifetime exemption. Also, consider the timing around any board resolutions or major company decisions. If you're planning to authorize a new stock option pool or make other decisions that could affect valuation, coordinate the timing of your gifts accordingly. The other thing to watch out for is making sure your company doesn't inadvertently lose QSBS status. I've seen companies lose qualification because they acquired too many assets that weren't used in the active business, or because they started holding too much cash without a clear business purpose. Keep detailed records of how any excess cash is being used for business operations.

Having been through audit reconsideration myself, I strongly recommend faxing a hardship letter to the specific department handling your case. Make it ONE page only, explain the immediate financial impact (can't pay rent, etc), and request expedited processing. Include your case/reference number at the top. In my experience, a short fax got more attention than calls or multi-page letters. The IRS is drowning in paperwork, so making your hardship clear and concise can help get your case pulled from the stack.

I'm so sorry you're going through this financial nightmare. The IRS audit reconsideration process is painfully slow, but there are definitely steps you can take to get some relief while you wait. Since you're only left with $980/month after the levy, you absolutely qualify for economic hardship relief. Here's what I'd recommend doing immediately: 1. File Form 911 with the Taxpayer Advocate Service - this is specifically designed for cases like yours where collection actions are preventing you from meeting basic living expenses. 2. Request Currently Not Collectible (CNC) status by submitting Form 433-F. With your income level, you should qualify easily. 3. Contact the IRS collections department directly and request a temporary release of the levy based on economic hardship. Be persistent - document everything. The reconsideration process typically takes 6-18 months right now due to backlogs, but the financial hardship relief can happen much faster - sometimes within 2-4 weeks if you push hard enough. Also, make sure your CPA is actively following up on your case every 2-3 weeks. Don't just wait for those form letters - have them call and get status updates. You have the right to know what's happening with your case. Hang in there - this will get resolved, but you need to be proactive about the hardship relief while you wait.

Thanks everyone for all the helpful info! Just to add one more tip - if you're mailing your Form 8892, make sure you're using the current version of the form. The IRS updates forms periodically and they won't accept outdated versions. You can always download the most current Form 8892 from the IRS website at irs.gov. I made the mistake of using a form I had saved from a previous year and had to redo everything. Also, double-check that you're including all required information like your name, SSN, and the specific reason you need the extension - incomplete forms can get rejected and you'll lose valuable time. The certified mail suggestion from earlier posts is spot on. It's worth the extra few dollars for peace of mind, especially when you're cutting it close to the deadline.

Just wanted to share my experience from last year - I was in almost the exact same situation as you! I needed to extend only my Form 709 gift tax return, not my regular income taxes. One thing that really helped me was creating a simple checklist before mailing my Form 8892: - Current year's form downloaded from IRS.gov (not an old version) - All personal info filled out completely (name, SSN, address) - Specific reason for extension clearly stated - Estimated tax payment included (I rounded up to be safe) - Sent via certified mail with tracking The whole process was actually pretty straightforward once I stopped overthinking it. The hardest part was just accepting that yes, you really do have to mail it in - no e-file option. But the postmark rule gives you some flexibility as long as you don't wait until the last minute. Also, keep copies of everything you send, including the certified mail receipt. You'll want that documentation just in case there are any questions later.

You know what's interesting about this situation? The IRS actually has a right to hold your current refund against prior year liabilities. But what if you don't actually owe anything for those prior years? What if you were due refunds? You might be thinking "I don't need to file because I'd get money back" but there's a 3-year statute of limitations on claiming refunds. So you might want to calculate if you're actually due money from those unfiled years before they expire. The IRS won't remind you to claim your refunds before they expire, will they?

I went through this exact nightmare in 2022. The IRS held my $4,800 refund for 11 months while I scrambled to file 2019, 2020, and 2021 returns. Here's what I learned: First, prioritize getting your transcript immediately - it shows exactly which years are flagged and what hold codes are active. Second, file those missing returns electronically if possible, but don't stress if you have to paper file - both work, electronic is just faster for processing. Third, once you file the back returns, call the Practitioner Priority Line (855-821-0944) and ask them to manually review your account for hold release. I found this line had shorter wait times than the general taxpayer line. The agent was able to see my filed returns in the system and expedited the refund release. Total timeline from filing my last missing return to receiving my refund was 8 weeks. Stay persistent and document everything!