I went through this last year. Let me tell you what worked for me: Get on a payment plan as soon as possible after filing. IRS Fresh Start program was a lifesaver. They let me pay a small amount monthly based on my actual ability to pay. Also, after you file all required returns, you can request penalty abatement through Form 843. I was able to get first-time penalty abatement which eliminated a ton of the failure-to-file penalties for my earliest unfiled year. Didn't help with interest, but still saved thousands. Don't forget about state taxes! Each state has different requirements and lookback periods. Some states (like CA where I am) can be even more aggressive than the IRS about collection.

I really appreciate everyone sharing their experiences here. As someone dealing with anxiety and depression like you mentioned, I want to emphasize that taking action - even small steps - really does help reduce the overwhelming feeling about this situation. One thing that helped me personally was breaking it down into very manageable chunks. Week 1: just request transcripts. Week 2: organize what I found. Week 3: tackle one year at a time. The mountain becomes much more climbable when you're not trying to solve everything at once. Also, don't beat yourself up about the COVID relief programs you missed. Focus on what you can control moving forward. The IRS genuinely wants people to get back into compliance, and there are more options available than most people realize. Consider reaching out to a Low Income Taxpayer Clinic (LITC) in your area if money is tight. They provide free or low-cost representation and can help navigate the process. You can find one through the IRS website or by calling the Taxpayer Advocate Service at 1-877-777-4778. You're taking the right steps by addressing this now. It's never too late to get back on track.

Does your cousin happen to have owned more than 5% of any US company whose stock he sold? That's the only scenario I can think of where a non-resident might owe tax on capital gains - if they had a substantial ownership interest in a US corporation.

Just to add some clarity for anyone following this thread - the original poster's situation is straightforward, but I want to emphasize that non-resident tax rules can have surprising exceptions. For example, if your cousin had been a "dual-status alien" (resident for part of the year), or if he had any US business activities beyond just holding investments, the analysis would be completely different. Also, some states have their own rules for non-residents that can catch people off guard. The good news is that based on what you've described - Australian resident, no US presence, simple stock sales through a brokerage - you're definitely on the right track with just filing the 1040NR and Schedule OI. The capital gains sourcing rules are pretty clear in this case. One small tip: make sure you keep good records of the stock transactions even though you're not reporting them as taxable income. If the IRS ever questions the return, having documentation of purchase dates, sale dates, and amounts will help explain why the gains weren't subject to US tax.

I went through this EXACT scenario but back in 2022. Honestly, just file an extension right now! Not worth stressing over the S-Corp issue for 2023 - it's too late to use it for last year. Just make sure you're set up correctly for 2024. Here's what I wish someone told me: the S-Corp election is really only worth it once you're making consistent profit. My accountant said rule of thumb is $40k+ profit before the savings outweigh the hassle and extra costs. The first year I spent more money on payroll services, extra tax filings, and accountant fees than I saved in SE taxes!

Just wanted to echo what others have said - you definitely missed the window for 2023 S-Corp election since your LLC was formed in 2024. The IRS is pretty strict about those timing rules being based on entity formation date, not when you started business activities. That said, don't stress too much about it! For a side business that started mid-year 2023, you're probably not missing out on huge tax savings anyway. The S-Corp election really shines when you have consistent higher profits. Definitely file that extension (Form 4868) ASAP to buy yourself time until October. And when you do meet with an accountant, have them run the numbers on whether S-Corp makes sense for 2024 based on your projected income. Sometimes the extra compliance costs and payroll requirements aren't worth it until you hit that $40k+ profit threshold that others mentioned. Good luck getting everything sorted out! The fact that you're thinking about tax optimization shows you're on the right track with your business growth.

Quick question - does anyone know if PayPal Friends and Family transactions over $600 are being reported to the IRS for the 2025 tax year? I thought that rule changed recently.

Just wanted to add something important that I learned the hard way - make sure you keep detailed records of ALL your transactions, not just the big ones. I had a similar situation with collectible sales through various apps (PayPal F&F, Venmo, cash, etc.) and during my audit last year, the IRS wanted to see documentation for everything. They were particularly interested in establishing a pattern of whether I was buying/selling as a hobby vs running a business. For your $8,100 sale, definitely report it as a capital gain like others mentioned, but also document any other card sales you might have done throughout the year - even small ones. The IRS looks at the bigger picture to determine if you're a casual collector or if this constitutes a business activity, which would change how the income is taxed. Bank statements, text messages, even photos of the cards can help establish your basis and the legitimacy of the transaction.

Based on what I've seen across multiple tax seasons, Liberty's Deep Blue Card typically processes 3-7 days slower than direct deposit to a bank account, but much faster than waiting for a paper check (which can take 4-6 weeks). If you're comparing it to other tax prep companies, H&R Block's Emerald Card and Jackson Hewitt's American Express Serve card have almost identical timelines. The real difference is in the fee structure - Deep Blue has higher monthly fees but lower one-time withdrawal fees compared to competitors. The most important thing right now is to keep checking your card balance daily because some people are reporting deposits without receiving notifications!

has anyone had any experience with this? My son got his refund on the card when he tried to use it, it was blocked, so when he called customer service Saturday they told him his account was blocked until they verified it was him, now he calls today, they told him it will take two business days to have access to his money has anyone went through this i thought they can unblock the card immediately