4 Don't forget about state taxes! The IRS payment deadline applies to federal taxes, but your state might have different rules and deadlines for payment. Make sure you check your state's tax website too.

Hey Marcus! I just went through this exact situation last month and wanted to share what I learned. You're absolutely right to stress about this, but there are good options available. First, you do have until April 15, 2025 to pay without the failure-to-pay penalty, even though you filed early. But here's what I wish someone had told me - even if you can't pay the full amount by April 15, you should still file your return on time (which you already did!) because the failure-to-file penalty is way worse than the failure-to-pay penalty. If you can't pay by April 15, definitely set up an installment agreement ASAP. The IRS is actually pretty reasonable about payment plans. For amounts under $50k, you can usually get approved online instantly. The setup fee is only $31 if you do it online with direct debit, and you can choose a payment plan that works with your budget. One thing that really helped me was calculating exactly what each option would cost. Interest starts April 15 at about 8% annually, plus there's a 0.5% monthly penalty on unpaid balances. So if you owe $3,000 and set up a 12-month payment plan, you're looking at maybe $150-200 total in interest and fees, which isn't terrible spread over a year. Don't let the stress eat at you - the IRS deals with this situation constantly and they have systems in place to help. You've got options!

your in for a wait fam. they tried sending mine to closed account twice b4 getting it right 💀

Ugh this is my biggest fear! I'm still waiting for my 846 code but my bank account situation is sketchy too. How did you get through to the IRS to update your info? Every time I call it's like a 2 hour wait and then they hang up on me 😤 Hopefully the new DD info processes quick for you!

Has anyone tried just increasing their prices to cover the sales tax? I know it's not ideal but I wonder if customers would even notice a 6-8% increase if all your competitors are facing the same issue.

This is a really common issue that trips up a lot of dropshippers! The key thing to understand is that the Wayfair ruling changed how states determine nexus for sellers, but it didn't change the fundamental rule that legitimate resale purchases should be tax-exempt. Your supplier is charging you sales tax because they're treating you like a regular consumer rather than a reseller. The solution is definitely getting proper resale certificates as others mentioned, but here are a few additional tips: 1. Make sure your business is properly registered in your home state and you have a valid sales tax permit/license 2. Keep detailed records showing these are legitimate inventory purchases for resale 3. If your supplier pushes back, remind them that charging sales tax on legitimate resale transactions could actually create liability issues for them One thing I haven't seen mentioned yet - if you're approaching economic nexus thresholds in other states (typically $100k in sales OR 200+ transactions per year), you'll eventually need to register there anyway to collect and remit sales tax from your customers. But that's separate from this supplier issue. Don't let this eat into your margins unnecessarily - you shouldn't be paying sales tax on inventory purchases when you're a legitimate reseller!

The rules for crypto are still evolving. Has anyone tried taking the position that these weren't "theft losses" but "worthless securities" under Section 165(g) of the tax code? There's an argument that if you received actual tokens that became worthless, it could qualify. Different from never receiving anything.

I went through something similar with a crypto scam that cost me about $9,000 last year. After reading through all these responses, I wanted to share what I learned from my own research and consultation with a tax professional. The key distinction seems to be whether you can prove you actually received something of value (even if it later became worthless) versus being defrauded outright. In my case, I was able to show that I received tokens on the blockchain, even though they turned out to be completely worthless. My CPA helped me claim this as a capital loss rather than a theft loss. For anyone dealing with this, I'd recommend gathering every piece of documentation you have: transaction receipts, wallet addresses, blockchain confirmations, screenshots of the platform, any communications with the scammers, etc. The more you can document about what actually happened, the better chance you have of finding some tax relief. Also, don't give up if the first tax professional you consult doesn't know much about crypto. The rules are still evolving and many traditional tax preparers aren't up to speed on cryptocurrency taxation. It's worth finding someone who specializes in this area.

Consider the tradeoff between cost and risk. I tried saving money by using TurboTax last year after paying a CPA around $600 for years. Ended up missing a major deduction related to my side business that would have saved me $1,800. Back to using a professional this year! Sometimes cheaper isn't better when it comes to taxes.

I'm dealing with a similar situation - my tax preparer just quoted me $850 for what used to cost $500 two years ago. After reading through these comments, I'm seriously considering a hybrid approach: using one of these AI tools like taxr.ai to identify potential deductions I might be missing, then having a professional review the final return before filing. For what it's worth, I called around to get quotes from other preparers in my area and found the pricing varies wildly - from $400 to over $1000 for similar complexity. Location definitely seems to matter. One thing I learned is to ask upfront what's included in their fee and whether there are additional charges for things like e-filing, state returns, or follow-up questions. Has anyone tried negotiating with their current preparer? I'm wondering if loyalty discounts are a thing in this industry.