Important tip: be aware there's a 3-year deadline for filing an amended return for a refund! For 2021 taxes, you generally have until April 15, 2025 (3 years from the original due date). Don't wait too long to file your 1040-X. Also, SAVE EVERYTHING related to this amendment. The IRS can sometimes take 4-6 months to process 1040-X forms, and having copies of everything you submitted makes follow-up much easier if needed.

The 3-year deadline is still based on the original filing date, not when you paid the balance after receiving the notice. So for your 2021 return, you still have until April 15, 2025 to file the 1040-X for a refund - paying that IRS bill doesn't extend this deadline. Regarding e-filing amendments - you're right that it's still mostly paper filing for 1040-X forms, though some tax software now allows e-filing of certain simple amendments. For complex situations like missing cost basis with supporting documentation, you'll likely need to mail it in. Make sure to send it certified mail so you have proof of delivery. One more thing for the original poster - when you file your 1040-X, you might want to include Form 4852 (Substitute for Form W-2/1099) if your brokerage didn't provide corrected forms. This helps explain why the cost basis was missing on your original return and strengthens your case for penalty abatement.

Don't forget you might need to look into sales tax too, depending on what state you live in and where your customers are! I sell digital art files online and had to register for a sales tax permit in my state. The rules are different for digital goods vs physical products though, so you'll want to check your specific state laws.

Does anyone know if hand modeling sites typically send 1099s? I do something similar and last year none of the platforms I used sent me any tax forms, even though I made around $3k. I'm freaking out that I'm gonna get in trouble with the IRS!

Compared to other verification situations I've seen, yours seems to be moving along the standard path. When verification happens on weekends versus weekdays, there's typically a slight difference in processing speed - weekend verifications often take about 1-2 days longer than weekday ones because the actual processing doesn't begin until Monday. Also, if you're comparing your timeline to pre-2023 experiences, keep in mind that the current IRS systems have been updated and generally process verified returns about 20% faster than in previous years, assuming all other factors are equal.

I went through this exact same process about 3 weeks ago and can share my timeline. I verified my identity on a Tuesday evening, called to confirm the next day, and the verification notice disappeared from my account within 24 hours. My direct deposit hit my bank account exactly 11 days later on a Saturday morning. One thing I noticed is that my transcript updated with a 846 refund issued code about 2 days before the actual deposit appeared in my account. So if you're checking your transcript regularly (which you can do on the IRS website), that code will give you a heads up that your deposit is coming soon. The waiting is definitely nerve-wracking, but based on what I'm seeing from others this season, your timeline sounds very normal.

MBA tax deductions are complicated! I got my MBA while working full-time in finance, and the IRS questioned my deduction too. Here's what my tax attorney told me - the key is whether your MBA qualifies you for a "new trade or business" vs. improving skills in your existing one. For example, if you were a marketing specialist before your MBA and continued as a marketing specialist (even with promotion), you have a stronger case than if you were in marketing before and moved to finance after. The IRS often argues that an MBA with a general business curriculum inherently qualifies you for new types of jobs, even if you personally didn't change careers. If you haven't already, check out Tax Court case Galligan v. Commissioner which specifically deals with MBA deductions. Might give you some ammunition.

I went through a similar MBA audit situation two years ago and ended up winning my case. The key thing that saved me was being extremely specific about how each course directly improved my performance in my existing role rather than qualifying me for new positions. What really helped was getting documentation from my employer before, during, and after my MBA showing that: 1) My job title and core responsibilities remained the same, 2) The company encouraged (but didn't require) the MBA for my current role, and 3) My performance reviews specifically mentioned how MBA coursework was improving my existing job functions. I also kept detailed records of how I applied concepts from each class to actual work projects. For instance, I documented how the financial analysis course helped me better evaluate marketing campaign ROI - something I was already responsible for but doing less effectively before the MBA. The $10,500 they're asking for is definitely worth fighting if you can build a solid case showing the MBA enhanced rather than replaced your existing skill set. Don't give up without a proper appeal!

Just to add another perspective, I formed an LLC for my freelance design business last year, and here's what I learned: it's absolutely NOT a free-for-all for deductions. I tried deducting my new laptop at 100% and got destroyed in an audit because I couldn't prove it was exclusively for business. Now I keep a separate credit card for business purchases, log work vs personal use for mixed items, and maintain a mileage log for my car. My tax guy says the key isn't the LLC - it's having a legitimate business with actual income and keeping meticulous records for anything you deduct.

Your friend's cousin is basically committing tax fraud, and it's only a matter of time before the IRS catches up. I see this all the time - people think forming an LLC gives them some magical shield to deduct personal expenses, but it doesn't work that way. The IRS has specific tests for business deductions: they must be ordinary, necessary, and directly related to your business activities. That truck? Only deductible if it's primarily used for the landscaping business. Personal vacations disguised as "business trips"? That's fraud. Electronics for personal use claimed as business equipment? Also fraud. What really gets people caught is the pattern - claiming tons of deductions with little to no business income, year after year. The IRS calls these "hobby businesses" and they have specific rules to prevent exactly what your friend's cousin is doing. When (not if) he gets audited, he'll face back taxes, penalties, interest, and potentially criminal charges. If you want to start a legitimate business, absolutely do it - but do it right. Keep separate accounts, maintain detailed records, and only deduct expenses that genuinely benefit your business operations.