I had my CPA submit Form 14039 (Identity Theft Affidavit) after waiting 3 weeks for a verification letter that never arrived. This expedited the process and I received my refund via DD exactly 16 days later. The key was providing comprehensive documentation - including copies of my driver's license, social security card, and a utility bill showing my address. This approach bypassed the need for the verification letter entirely and resolved the hold on my account.

Just went through this exact situation last month! The verification letter took almost 4 weeks to arrive, but I didn't wait - called the 800-830-5084 number after 2 weeks and got it sorted immediately. Pro tip: call right at 7am when they open for the shortest wait times. They'll ask you questions about your previous tax returns, current address, and some credit-related info to verify your identity. Have your Social Security card, driver's license, and last 2 years of tax returns handy. Once verified, my refund processed within 9 business days. Don't let your CPA pressure you into thinking this is a huge delay - it's actually pretty routine and resolves quickly once you get through to them.

This is probably a dumb question but can you use a credit card to pay a CP2000? I've got points on my card and figured I might as well get something back from this painful experience lol

Just went through this exact same situation with a CP2000 from 2021! The key thing I learned is that you absolutely cannot set up the payment plan online through the regular IRS payment portal until after you've formally agreed to the CP2000 assessment. Here's what worked for me: 1. First, I had to decide whether to agree or disagree with the proposed changes on the CP2000 2. I signed and mailed back the response form agreeing to the assessment 3. About 2 weeks later, I called the specific number on my CP2000 notice (not the general IRS number) and requested the 180-day payment plan 4. The agent set it up over the phone and gave me a confirmation number The 180-day plan is nice because you don't have to provide financial statements like you do for longer payment plans. Just make sure to keep making payments even if you don't hear back right away - the interest keeps accruing! One tip: when you call, have your CP2000 notice in front of you with the specific reference number. The agents can pull up your case much faster that way.

Did your CPA provide any documentation about why they thought you qualified for HoH? I'm surprised they were so confident about this if you were trading off claiming the kids. When I got divorced, my tax person was super strict about HoH requirements and made me document everything.

First, my deepest condolences for your loss. This is such a difficult time and dealing with tax complications on top of grief is incredibly stressful. I think you should definitely file your wife's final return - it's required by law and avoiding it won't make any potential issues go away. The good news is that if you've been filing separately all these years, her final return should be relatively straightforward as married filing separately. Regarding your Head of Household status, I'd recommend gathering all your documentation from those years (mortgage/rent payments, utility bills, childcare expenses, etc.) to see if you truly met all the requirements the enrolled agent listed above. The fact that you alternated claiming the children as dependents could be problematic for HoH eligibility in the years you didn't claim them. Consider getting a consultation with a different tax professional for a second opinion on your situation. They can review your specific circumstances and help you determine if you need to amend any returns. It's better to be proactive about this than to wait for the IRS to potentially discover any issues later.

Everyone's talking about tax deductions, but what about depreciation? Even if you can't deduct it as a W2 employee, if you do start a side hustle you should look into depreciating expensive equipment over time vs. taking an immediate Section 179 deduction. Sometimes spreading it out makes more sense tax-wise depending on your income situation.

This is such a common frustration for creative professionals! I went through the exact same thing when I was doing marketing photography as a W2 employee. The tax law changes really hurt employees who invest in their own equipment. One thing that worked for me was approaching my manager with a "business case" presentation. I showed specific examples of how the new lens would improve our content quality - like being able to shoot in lower light conditions for evening property shots, or getting sharper detail shots of amenities. I also researched what our competitors were doing visually and showed how better equipment could help us stand out. My company ended up creating an "equipment stipend" as part of my compensation package. It wasn't a full reimbursement, but it covered about 60% of the lens cost and they structured it so it wasn't taxable income for me. Worth asking if your company has any flexibility with equipment allowances or if they'd consider it a business investment rather than an employee expense. If that doesn't work, definitely look into the legitimate side business route that others mentioned. Just make sure you're actually marketing services and trying to make a profit - the IRS is pretty strict about hobby vs. business classification.

Has anyone had to deal with the Net Investment Income Tax (NIIT) on foreign rental income? I heard the 3.8% NIIT applies to rental income even from foreign properties and that foreign tax credits don't offset it. Wondering if that's accurate.

I went through this exact same situation with my rental property in Toronto last year! A few additional tips that might help: 1. **Timing of currency conversion**: You can use either the yearly average exchange rate from the IRS or daily rates for each transaction. I found the yearly average much simpler for regular rental income/expenses. 2. **Canadian tax paid**: Even though you had a loss this year, keep all your Canadian tax documents. If you have Canadian taxes withheld or paid on rental income in future profitable years, you can claim those as foreign tax credits on Form 1116. 3. **Loss limitations**: Be aware that rental losses are generally considered "passive losses" and can only offset passive income unless you qualify for the $25,000 real estate professional exception (which requires significant involvement in real estate activities). 4. **Provincial vs federal**: Make sure you're accounting for both Canadian federal and provincial taxes paid when calculating foreign tax credits in future years. The good news is that once you get the process down for the first year, subsequent years become much more routine. I'd definitely recommend keeping detailed records of all your Canadian rental documents and currency conversions - it makes things so much easier come tax time!