Based on everyone's experiences here, it's clear that Form 843 IS required along with your detailed letter for rev. proc 84-35 relief requests. I went through this exact process 6 months ago for my single-member LLC. Here's what worked for me: I completed Form 843 with "Request for penalty abatement under Revenue Procedure 84-35" in the reason section, then attached a comprehensive letter that specifically addressed each requirement in the revenue procedure. Make sure your letter includes: - Clear statement that you're requesting relief under rev. proc 84-35 - Detailed explanation of how you meet ALL the criteria - Timeline of missed filings and circumstances - Supporting documentation (bank statements, medical records, etc. if applicable) I mailed everything together via certified mail and got approval in about 10 weeks. The key is being thorough in documenting how you qualify - the IRS agents reviewing these requests need to see that you clearly meet every requirement outlined in the revenue procedure. Don't skip the Form 843 thinking the letter alone will suffice - you need both components for a complete submission.

Reading through everyone's experiences here has been incredibly helpful - I'm dealing with a similar situation where my LLC missed filing deadlines due to a family emergency that required me to travel out of state unexpectedly. One thing I haven't seen mentioned yet is the importance of checking which specific penalty you're requesting abatement for. Rev. proc 84-35 applies to failure-to-file penalties, but if you also have failure-to-pay penalties, those might require a separate approach or different documentation. Also, for anyone still unsure about the Form 843 requirement - I called the IRS practitioner hotline last week and confirmed that yes, Form 843 is absolutely required for formal abatement requests under rev. proc 84-35. The letter serves as crucial supporting documentation, but without the form, your request won't be processed through the proper channels. Make sure to keep copies of everything you send and use certified mail or fax with delivery confirmation. The IRS processes thousands of these requests, so having proof of submission is essential if you need to follow up later.

Have you considered adjusting your W-4 at your main job to have more taxes withheld? That might help offset the freelance tax burden. I do this since I have rental income that creates extra tax liability.

This exact same thing happened to me two years ago! The combination of freelance income + bonus really does create a perfect storm for tax surprises. One thing that helped me was understanding that the "tax brackets" are marginal - so when that extra $19k pushed you into higher brackets, only the income ABOVE each threshold gets taxed at the higher rate, not your entire income. Still expensive, but not as bad as it initially seems. Also, definitely look into whether you can still contribute to a traditional IRA for 2024 (you have until the filing deadline). Even a $6k contribution could reduce your tax bill by $1,320-$1,980 depending on your bracket. Every bit helps when you're staring down an $8,700 bill! For this year's freelance work, open a separate savings account and automatically transfer 30% of every freelance payment. Treat that money as already gone - it makes the quarterly payments so much less painful.

I've been following this discussion and wanted to add some perspective as someone who made this exact mistake a few years ago. I initially put my LLC's business checking account interest on my 1040 because that's what my tax software defaulted to, and it caused confusion during an IRS audit. The auditor questioned why I was reporting business-generated interest as personal income, and I had to provide bank statements and documentation to show that while the interest was reported on my personal return, it actually came from my business account. It wasn't a huge issue, but it definitely raised red flags and extended the audit process. Ever since then, I've been very careful to report business account interest on Schedule C line 6 where it belongs. The auditor actually told me this was the correct approach and recommended I amend previous returns if I had been doing it wrong (which I did). So from someone who learned the hard way - definitely put your business account interest on Schedule C. It saves you potential headaches down the road if you ever get audited.

This has been such a valuable thread! I'm a CPA and I see this confusion all the time with single-member LLC clients. You're absolutely right that business checking account interest belongs on Schedule C line 6. What I tell my clients is to think of it this way: if your LLC earned $1000 from services and $50 in interest, both amounts came through your business. The fact that one came from operations and one came from your bank account doesn't change that they're both business income for tax purposes. The story about the audit experience really highlights why proper classification matters. The IRS computer matching systems are looking for logical consistency - when they see a 1099-INT issued to your business EIN but that income reported on your personal 1040, it can trigger questions. One more tip: keep a simple spreadsheet each year showing all your business income sources (operations, interest, etc.) and where you reported each one on your return. This kind of documentation is invaluable if you ever need to explain your filing positions to the IRS.

I just did this last week for my three kids! The IRS.gov process is pretty straightforward now compared to previous years. I followed the guide on https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin and was able to get PINs for all three children in about an hour total. The verification part took the longest. Make sure you have your ID and their social security cards handy before you start.

I just went through this process for my two kids last month and wanted to share a few tips that made it smoother: 1. Do the ID.me verification during off-peak hours (like mid-morning weekdays) - it's much faster 2. Have both your driver's license AND a utility bill ready - the system sometimes asks for additional verification 3. Write down the PINs immediately and store them securely - you'll need them when filing next year's taxes One thing I wish I'd known earlier: if you use tax software like TurboTax or H&R Block, make sure it supports IP PINs before you start filing. Most do now, but it's worth double-checking. The peace of mind is totally worth the 30 minutes it takes per child!

Has anyone mentioned the implications for property taxes and homestead exemptions? If you own property in both states, you typically can only claim primary residence benefits in one state. Could affect property tax bills significantly.

This is such a complex situation! I went through something similar when my spouse and I had jobs in different states. One thing that really helped us was keeping detailed records of everything - days spent in each state, where we voted, which state our driver's licenses were in, etc. The employment situation with your wife potentially switching from salary to contract work is interesting - that could actually impact the tax analysis significantly since contract income is treated differently than W-2 income for state tax purposes. You might want to run the numbers both ways (her staying salaried in NJ vs. becoming a contractor) to see which scenario is more tax-advantageous overall. Also, don't forget about things like voter registration and car registration - these can be factors that states use to determine your "true" domicile if there's ever a question. Make sure whatever you choose is consistent across all your official documents.