Maya, you're definitely not alone in this situation! The good news is that you're being proactive about fixing it. Based on what others have shared here, you should still be able to amend your 2019 return, though time may be getting tight depending on when you originally filed. For your $8,400 in freelance income, you'll need Form 1040-X to amend, plus Schedule C for the business income and Schedule SE for self-employment tax (which will be around 15.3% of your net earnings). Don't forget that you can also deduct legitimate business expenses from that freelance work - things like software subscriptions, equipment, even a portion of your home if you had a dedicated workspace. The key is to file as soon as possible. Since you're voluntarily coming forward, you have a much better chance of getting penalties reduced or waived, especially if you have a clean tax history. The IRS tends to be more lenient with people who self-report mistakes rather than those they catch through audits or matching programs. Keep all your payment records and any receipts for business expenses. The fact that you found these records while cleaning shows you weren't trying to hide anything - just document that timeline in case they ask. You've got this!

Maya, I went through almost the exact same situation last year with my 2020 return! I had forgotten about some consulting income and was terrified about the consequences. Here's what I learned from the experience: First, breathe - you're doing the right thing by coming forward voluntarily. The IRS really does treat self-disclosure much more favorably than when they catch unreported income through their matching systems. For your situation, you'll definitely need Form 1040-X, Schedule C for the freelance income, and Schedule SE for self-employment tax. But here's something important that others touched on - make sure you're calculating your NET earnings for the SE tax, not the gross $8,400. Any legitimate business expenses you had (software, equipment, even mileage to client meetings) can reduce that amount. I ended up owing about $1,800 in additional tax plus interest, but I successfully got the penalties waived through first-time abatement. The key was explaining in my cover letter that it was an honest oversight, not intentional tax avoidance. One practical tip: gather your documentation now while you're motivated. I procrastinated for months out of anxiety, which just made the interest accrue longer. The sooner you file the amendment, the sooner the interest stops growing. You've got this! The hardest part is realizing the mistake - fixing it is actually pretty straightforward.

Based on my experience working with several clients in similar situations, the TAS has become much more responsive to hardship cases in 2024 compared to previous years. I've seen them accept cases as early as 2-3 weeks after amendment filing when proper documentation was provided. The key is submitting Form 911 with comprehensive documentation of your hardship AND proof that you've attempted to resolve through normal channels. I recommend calling the TAS intake line directly at 877-777-4778 rather than the general IRS line, as they can better assess your situation.

I went through almost the exact same situation two years ago with a burst pipe that flooded my basement right after filing an amended return. Here's what worked for me: I called the TAS line (877-777-4778) and explained that I had immediate housing safety concerns due to water damage. The key was having documentation ready - photos of the damage, repair estimates, and a letter from my insurance company showing the coverage gap. They accepted my case within 5 days of filing Form 911 because I could demonstrate that the water damage posed health risks and I couldn't afford repairs without my refund. Don't let anyone tell you that you have to wait months - if you have genuine hardship with proper documentation, TAS can act quickly. The whole process took about 6 weeks from when they accepted my case to getting my refund. Stay persistent and document everything!

Has anyone actually read the full Glenshaw Glass opinion? I just did and I'm not sure it's as clear-cut as some are making it out to be. The case was really about whether money from punitive damages counted as income, not about unrealized gains specifically. The phrase everyone quotes about "clearly realized" gains was part of a broader definition and might not be the constitutional barrier everyone thinks it is. I'm not saying unrealized gains taxes ARE constitutional - just that this particular case might not be the slam-dunk argument against them that people claim.

Great point about Eisner v. Macomber! That 1920 case is actually more directly on point than Glenshaw Glass for this issue. The Court ruled that a stock dividend wasn't taxable income because it was just a paper increase in value without any actual receipt of money or property that could be "severed" from the capital. The Court specifically said that income requires "the gain derived from capital, from labor, or from both combined" that has been "received or drawn by the recipient" for their separate use. Just holding an appreciated asset doesn't meet this test because you can't actually use that gain - it's still tied up in the original investment. This is why I think any unrealized gains tax would face serious constitutional challenges. The Supreme Court has been pretty consistent over the past century that you need some kind of actual receipt or realization event before something becomes taxable income under the 16th Amendment.

Just to add another data point - I recently applied for my EIN for a project management SAAS and also selected "Service" based on advice from this community. The application was approved without any questions or delays. One tip that helped me feel more confident: I looked up how established SAAS companies like Salesforce and HubSpot are classified, and they're all considered service providers rather than retail. The IRS really does view software subscriptions as providing ongoing access to a service rather than selling a product, so "Service" is definitely the way to go for your application.

This thread has been incredibly helpful! I'm launching a customer support automation SAAS next month and was facing the exact same dilemma. Based on all the experiences shared here, I'm confident that "Service" is the right choice for my EIN application. What I found most valuable was learning that this category selection is primarily for statistical purposes and won't lock me into any specific tax treatment later. The comparison to established companies like Salesforce and AWS really drove the point home - we're providing ongoing access to software functionality, not transferring ownership of a product. Thanks especially to those who shared their real experiences with successful applications. It's one thing to read the theory, but hearing from people who actually went through the process recently and had their EINs approved gives me the confidence to move forward without overthinking it.

I'm in exactly the same situation! Filed my 2023 return three weeks ago and it's been stuck on "Return Received" ever since. The waiting is driving me crazy, especially when you need that refund money. From what I've researched, the IRS is really backed up this year. A lot of people are experiencing longer processing times than the usual 21 days they advertise. I've been trying to stay patient but it's hard when you see the same status message day after day. One thing that's helped my anxiety a bit is remembering that "Return Received" means they actually have it in their system and it's not lost somewhere. I know it doesn't feel like progress, but at least we're in the queue. Has anyone here actually had success getting useful information from calling the IRS line? I'm debating whether it's worth the hours on hold just to hear "your return is being processed" which is what the website already tells us.

Same exact situation here! Filed my 2023 return on January 28th and it's been stuck on "Return Received" for over two weeks now. The daily checking is becoming obsessive but I can't help myself 😅 What's really getting to me is that friends who filed after me have already gotten their refunds approved. Makes you wonder if there's something specific triggering the delays this year. I've triple-checked my return and everything looks correct. I did try calling that 1-800-829-1040 number last week but gave up after being on hold for 3 hours. Might try the early morning strategy someone mentioned. The uncertainty is the worst part - at least if they gave us a rough timeline we could plan accordingly. Thanks for posting this, it's oddly comforting to know so many of us are in the same boat right now!