called the irs about this last month - got transferred 3 times just to get the same answer: no weekend deposits period.

Just to add some context - this is actually due to the Federal Reserve's payment processing system (ACH) which doesn't operate on weekends or federal holidays. It's not just the IRS being old-fashioned, it's the entire banking infrastructure. Your refund gets queued up and processes on the next business day. Most banks will show "pending" deposits over the weekend but won't actually credit your account until Monday.

Something nobody's mentioned yet - check your state's specific regulations too. AICPA ethics are one thing, but state boards of accountancy often have their own rules about this. In my state, there are additional disclosure requirements and separate engagement letter needs for CPAs who offer multiple service lines. Had to learn this the hard way when I got a letter questioning my compliance 😫

This is such a timely question for me too! I'm in a similar situation where I've been approached about offering financial planning services alongside my tax practice. One thing I've learned from researching this is that documentation is absolutely critical. Beyond just the engagement letters, you need to maintain detailed records showing how you made your tax recommendations independently from any potential sales opportunities. I've started keeping separate files that document my tax analysis process before any discussion of other services even comes up. Also, consider the practical implications - managing two different licensing requirements, continuing education for both areas, and the time investment to stay current in both fields. It's definitely doable but requires serious commitment to maintaining competency in both areas. Have you thought about what your liability insurance situation would look like? That's another area where you might need additional coverage depending on how you structure things.

My accountant told me that Schedule C's with home office deductions get flagged more often. Anyone know if thats true?? I started working from home and want to claim the space but worried it'll trigger something.

As someone who's been freelancing for about 3 years now, I totally get the paranoia! What really helped me was understanding that the IRS is actually looking for patterns that don't make business sense, not just high expenses. For your situation with $7,500 in income, claiming legitimate software subscriptions and equipment is totally normal and expected. The key things that helped me feel more confident: 1. Keep detailed records of HOW you use business expenses (like what percentage of internet is actually for work) 2. Don't claim personal expenses as business ones (even if it's tempting) 3. Be reasonable with your deductions - if you're claiming more in expenses than you made in income, that's when eyebrows get raised I've claimed everything from Adobe subscriptions to a new monitor to client meeting expenses, and never had an issue. The IRS understands that freelancers have legitimate business costs, especially in creative fields where software and equipment are essential. Your income level actually puts you in a lower-risk category for audits. Just keep doing what you're doing - claiming legitimate expenses with proper documentation!

Has anyone here actually formed an S-Corp after being sole prop? I'm considering it for 2023 after getting hit with massive SE taxes like OP. Is it worth the hassle and extra costs?

I've been in a similar situation and it's incredibly frustrating! Unfortunately, as others have confirmed, retroactive S-Corp elections for 2022 are essentially impossible at this point. The deadlines are very strict. However, don't give up on reducing your SE tax burden! A few additional strategies to consider: 1. **Quarterly estimated payments for 2025** - Start making them now to avoid underpayment penalties and spread the cash flow impact 2. **Maximize retirement contributions** - If you haven't already, consider a SEP-IRA contribution (up to 25% of net SE income or $66,000 for 2023, whichever is less). This reduces your taxable income. 3. **Payment plan with IRS** - If the tax bill is overwhelming, the IRS offers installment agreements. You'll pay interest, but it can make the burden manageable. 4. **Professional review** - Given the size of your potential tax bill, it might be worth having a CPA or EA review your return one more time before filing to ensure you're not missing any legitimate deductions. For 2023 and beyond, definitely explore S-Corp election if your profits justify it. The SE tax savings can be substantial once you account for the additional compliance costs. Hang in there - this too shall pass!

idk but my cousin had the same issue last year and it turned out to be a mistake on their end. keep pushing!

Have you tried calling the IRS directly at 1-800-829-1040? They can usually tell you if there are any holds or offsets on your account that might not show up on the Treasury offset line. Also, if you have an online IRS account, you can check your account balance there - sometimes it shows pending offsets before they actually process. Keep documentation of all your calls and reference numbers in case you need to dispute something later.