This thread has been absolutely fascinating to follow as someone who's been in a very similar situation! I had tax debt from freelance web development work from 2015-2017 that I completely mishandled in my late twenties - no quarterly payments, terrible record keeping, the whole disaster. What really stands out to me from reading everyone's experiences is how much the specific type of CNC status matters. I was initially placed in hardship-based CNC where they kept reviewing my finances every 12-18 months, which was stressful because I always felt like I was under scrutiny. When my status changed to "currently not collectible not due to hardship" about 18 months ago, I didn't understand why at first. Now after reading through all these insights, especially @Eve Freeman's real experience of watching a tax year actually expire, I realize this status change was actually much more favorable. The IRS essentially stepped back from active collection without me having to continuously prove financial hardship. @Ethan Davis, your timing situation sounds potentially incredible. If those 2014/2015 assessments really are from 2015, you could be looking at collection statute expiration dates very soon. The combination of CNC protection while approaching those 10-year marks could be perfect timing if you avoid doing anything that extends the statute. The "strategic patience" approach that @QuantumQuest and others have described has completely changed how I think about this situation. Sometimes the best action really is careful inaction when time is working in your favor. I'm definitely going to verify my own assessment dates more carefully based on all the advice shared here!

This has been such an incredibly informative discussion! As someone who's been dealing with similar tax debt issues from freelance work I completely mismanaged in my early career, I can't thank everyone enough for sharing their real-world experiences here. What really strikes me about this entire thread is how much the timing and specific type of collection status can matter in these situations. @Ethan Davis, your potential scenario is fascinating - if those 2014/2015 tax years were indeed assessed in 2015, you could literally be just months away from the 10-year collection statute expiration dates while already being protected by that favorable "not due to hardship" CNC status. @Eve Freeman's firsthand account of actually watching a tax year expire was incredibly reassuring. Knowing that it just quietly disappears from your transcript without any formal notification makes the whole 10-year rule feel much more tangible and achievable for those of us navigating similar situations. The concept of "strategic patience" that @QuantumQuest and others have described has been such a revelation. As someone who typically wants to jump in and actively solve problems, learning that sometimes the best approach is careful inaction when timing is working in your favor has completely shifted my perspective on debt management strategy. I'm definitely going to get my own transcripts professionally analyzed based on all the advice shared here. Understanding those exact assessment dates and collection statute timelines seems absolutely crucial for making informed decisions about whether to take action or maintain current status. This community has provided more valuable insights than months of trying to research this on my own - thank you all for being so generous with sharing your knowledge and experiences!

I'm going through the exact same thing right now! Filed with FreeTaxUSA on Tuesday night and it's Friday morning with still no acceptance notification. Coming from TurboTax where I'd get that green checkmark almost instantly, this is definitely nerve-wracking. But reading all these comments is really reassuring - sounds like 24-72 hours is totally normal for FreeTaxUSA. I'm going to check my account directly instead of waiting for the email notification since a few people mentioned that can be delayed. Thanks everyone for sharing your experiences!

I'm in the exact same boat as you! Filed with FreeTaxUSA Wednesday evening and it's now Friday afternoon with no acceptance notification yet. Coming from years of using TurboTax where I'd get that instant gratification, this waiting period is definitely anxiety-inducing. But after reading through all these responses, it sounds like 48-72 hours is completely normal for FreeTaxUSA's system. I actually just logged into my FreeTaxUSA account directly (instead of waiting for email) and can see my return status there. Might be worth checking yours too since some people mentioned the email notifications can lag behind the actual portal updates. The money I'm saving vs TurboTax will definitely be worth this temporary stress once I get that acceptance confirmation!

Has anyone used TurboTax for this kind of situation? Their multi-state option seems expensive but wondering if it's worth it or if it even handles this kind of situation properly.

I went through almost the exact same situation last year! My wife and I were in different states (she was in Oregon, I was in Texas) for about 10 months due to work. Here's what we learned: You're absolutely right that you can file jointly for federal and separately for each state. Since California is a community property state, you'll likely need to report half of your combined income ($85k) on your CA return, even though your husband doesn't work there. Colorado isn't a community property state, so your husband will mainly report his Colorado income. For the mortgage situation - since the house is in Colorado and you're both on it, the mortgage interest deduction will generally go on the Colorado return. However, if you're itemizing on your federal joint return, make sure you're coordinating this properly between states. One thing that caught us off guard was California's disability insurance (SDI) tax - make sure you understand how that applies to your portion of the community income. Also, don't forget to look into any credits for taxes paid to other states to avoid double taxation. Given the complexity with community property rules and your rental situation, it might be worth consulting a tax professional who specializes in multi-state returns, at least for this first year. The peace of mind was worth it for us!

As a new member of this community and someone who just launched a landscaping business this spring, I want to echo everyone's gratitude for this incredibly helpful discussion! I've been absolutely overwhelmed trying to figure out the COGS situation for my first tax season. The practical advice shared here has been invaluable - especially the "what is the customer paying for" test and the tip about taking photos of year-end inventory. I've been making this way more complicated than it needs to be, stressing about tracking every single item down to the ounce. What really resonates with me is how everyone emphasizes that reasonable estimates and consistent categorization matter more than perfect precision, especially for small operations like ours. I was getting paralyzed thinking I needed some sophisticated inventory management system right out of the gate. I'm definitely going to look into the small business taxpayer exemptions that were mentioned - if I can use the cash method and avoid the COGS complexity while I'm still getting established, that would be a huge relief. One follow-up question for the community: when you're doing that year-end inventory count, do you value leftover materials at what you originally paid for them, or do you try to account for any deterioration/loss of value? For example, I have some leftover plants that didn't get used and are looking a bit worse for wear after sitting around. Thanks again to everyone for sharing such practical, real-world experience. This thread alone has probably saved me hours of confusion and stress!

As a newcomer to both this community and the landscaping business, I can't express how helpful this entire discussion has been! I just started my own small landscaping operation a few months ago and have been absolutely stressed about the whole COGS situation for my upcoming first tax season as self-employed. The "what is the customer paying for" framework that several people mentioned is such a game-changer - it makes the distinction so much clearer than trying to memorize complex tax categories. Plants I install = COGS, equipment maintenance = regular expense. Simple and logical! I'm definitely implementing several of the practical tips shared here: the photo inventory system at year-end, physically separating job-specific materials from general inventory, and keeping receipts in two clear categories. These real-world solutions are exactly what I needed instead of getting lost in theoretical tax guides. The information about small business taxpayer exemptions is potentially huge for someone like me. If I can qualify for the cash method and avoid the inventory complexity while I'm still getting my systems established, that would eliminate so much of my tax anxiety. I'm also really appreciating the community aspect here - it's reassuring to know other new landscaping business owners are facing the same challenges and figuring it out together. Thanks to everyone who took the time to share their hard-earned experience and practical solutions!

As a quick aside, make sure you're still checking the "Not required to file Schedules L, M-1 and M-2" box on page 1 of your 1065 if you qualify for the exemption, even if you're filling them out for your own records. I've seen the IRS send notices when this box isn't checked but the schedules are included.

I've been dealing with this same issue for my LLC partnership and found a simpler approach that might help. Since you're exempt from filing these schedules, consider this workflow: 1. Complete Schedule M-1 as normal (sounds like yours is working fine) 2. For Schedule L, maintain your current book capital accounting method 3. Use the override function in H&R Block for Line 21 to match your books 4. Complete Schedule M-2 separately just to see the tax basis capital calculation This way you get the benefit of seeing both perspectives - your book capital (which is what you use to manage the business) and the tax basis capital (which shows what the IRS methodology would be). You don't need to force them to match since you're not filing. I actually find this dual approach more informative than trying to reconcile everything. It shows me how distributions and income allocations would be treated differently under tax rules versus my business accounting, which helps with planning future transactions. Just make sure to check the exemption box on page 1 of the 1065 as others mentioned!