Something important no one's mentioned - get EVERYTHING in writing! After my tax year mess up, I had a verbal confirmation from an IRS agent that my penalty would be removed, but it never happened. When I called back, they had no record of the conversation. Now I send all communications via certified mail with return receipt and request written responses. For phone calls, I follow up with a "confirmation letter" summarizing what was discussed and agreed upon. Mail it certified and keep the receipt.

I went through this exact same situation with my LLC in 2021! The "short year" checkbox is so misleading - I also thought it just meant partial business activity, not business termination. Here's what worked for me: 1. **Request a Collection Due Process (CDP) hearing** - This gives you formal rights and stops collection while you're resolving the issue. You have 30 days from the levy notice to request this. 2. **File Form 911 (Taxpayer Assistance Order)** - This is for when normal IRS processes aren't working. Since your amendment has been processing for 2+ months with penalties still accruing, this might qualify as a "significant hardship." 3. **Document your reasonable cause argument thoroughly** - I wrote a detailed letter explaining that the form was confusing, attached screenshots of the TurboTax interface showing how unclear the "short year" option was, and included evidence that my business was ongoing (bank statements, contracts, etc.). The key thing that finally resolved mine was getting assigned to a specific IRS case worker through the CDP process rather than dealing with different agents each time. It took about 4 months total, but they eventually removed all penalties and accepted my full-year amendment. Don't give up - this is absolutely fixable, just frustratingly slow! Your CPA meeting should help a lot with the formal documentation needed.

Just sharing a warning - I tried having my refund sent to my girlfriend's account last year and it was a HUGE mess. The bank initially accepted it but then froze her account for 10 days while they investigated. We had to provide all kinds of documentation proving we lived together and why I was sending my refund there. Even if your friend has the same first name, the last name difference will likely trigger fraud alerts. Just not worth the headache.

I'm a tax preparer and I have to strongly advise against sending your refund to someone else's account, even if you share the same first name. The IRS requires the name on the tax return to match the name on the bank account for direct deposit. While some banks might initially accept the deposit, they can (and often do) reverse it later when their fraud detection systems catch the name mismatch. Here are some legitimate alternatives that will be much faster than waiting for a paper check: 1. Open a new checking account online - many banks like Ally, Capital One 360, or Chime can approve you within minutes and provide account details immediately 2. Use a prepaid debit card that accepts direct deposits - you can get these at most grocery stores 3. Consider digital banking apps like Cash App, Venmo, or PayPal that provide routing numbers for direct deposits The temporary account freeze that Edison mentioned is very real - I've seen clients deal with this exact situation and it's a nightmare that can take weeks to resolve. Don't risk your friend's banking relationship over this. Take the extra day or two to set up your own account properly.

Just have her get a paper check if she doesn't want to use her account. Much simpler than dealing with the headache of mismatched accounts. Takes a bit longer but way fewer potential problems.

I'm a newcomer here but wanted to share what happened to me last year in a very similar situation. I tried to help my brother by having his refund deposited into my account, and it was a complete disaster. The bank rejected it immediately when they saw the name mismatch, then the IRS had to reprocess it as a paper check, which took an additional 8 weeks to arrive. My brother was counting on that money for rent and it really put him in a tough spot. What we should have done from the start was just help him open a basic checking account. Most banks have free options now, and it would have saved us months of headaches. Even a simple online bank account takes just a few minutes to set up and would have gotten his refund much faster than the mess we created. Learn from my mistake - always use the taxpayer's own account!

Has anyone actually received a CP2000 notice for this specific double-reporting situation? I'm curious what happens in that case.

I went through this exact situation two years ago and it was incredibly stressful! What really helped me was creating a simple spreadsheet documenting all the payments from that client - dates, amounts, and which forms they appeared on. This made it crystal clear that it was the same income being double-reported. The key thing to remember is that you've already correctly reported your income, so you're not actually in the wrong here. The IRS deals with this payment processor double-reporting issue constantly, especially with platforms like Stripe, PayPal, and Square becoming so common. If you do get a CP2000 notice (which honestly might not even happen), having that documentation ready makes responding super straightforward. You just explain the situation and provide the evidence. In my case, I never even got a notice - I think their systems are getting better at recognizing these situations automatically. For next year, definitely have that conversation with your client about not issuing a 1099-NEC when payments go through Stripe. Most small business owners don't realize they're creating this headache for their contractors!

The early deposit feature mostly applies to regular paychecks, not tax refunds. Tax refunds are sent by the Treasury in batches and the timing can be unpredictable. I wouldn't count on the "2 days early" thing for tax refunds specifically.

For anyone still waiting - just wanted to share that I also bank with Current and had a 4/15 DD date. Mine hit around 1:30pm today, so about 1 day early like most people have been saying. I think the key thing to remember is that the IRS releases these in waves throughout the day, so even if you have the same bank and DD date as someone else, you might get yours at different times. Don't panic if yours isn't there yet - it's probably coming soon! The stress of waiting is the worst part but it sounds like Current is being pretty consistent with the 1-day early timing for tax refunds.