One thing nobody mentioned - if this is your first time missing tax payments, you might qualify for the IRS First Time Penalty Abatement program! It won't eliminate what you owe, but could wipe out the failure-to-pay penalties if you've had a clean tax record for the past 3 years. You have to ask for it specifically though - they don't automatically give it to you. Just another option to help reduce the total amount.

I went through a very similar situation a couple years ago - owed about $3,200 on 1099 income and was completely panicking. Here's what I learned that might help: First, definitely file your taxes on time even if you can't pay. The penalty for not filing is 5% per month (up to 25%) while the penalty for not paying is only 0.5% per month. Big difference! Second, don't overlook business deductions. As a freelancer, you can deduct a lot more than you might think - home office expenses, equipment, software, phone/internet, mileage, training costs, etc. I ended up reducing my tax bill by almost $800 just by claiming legitimate business expenses I hadn't thought of. Third, the IRS payment plans are pretty reasonable. I got on a plan for $85/month and the whole process was much less scary than I expected. You can apply online after you file, and if you owe less than $50,000 it's usually auto-approved. The move between states does complicate things a bit, but since you moved from California to Texas (no state income tax), you'll probably just need to file a part-year California return. Don't let the complexity paralyze you - just file and deal with any corrections later if needed. You've got options and this is definitely manageable!

Has anyone else noticed that the IRS website seems to work better at certain times of day? I had a similar issue last month, and I found that logging in very early in the morning (like 5-6 AM) sometimes showed my balance when it wouldn't show it during normal daytime hours. Might be worth trying if you haven't already.

I've been dealing with IRS payment plan issues for years, and what you're experiencing is unfortunately very common. The IRS systems are notoriously slow to update, especially when there are multiple processes happening simultaneously (like a payment plan application while you still have an outstanding balance). A few things that might help while you're waiting: 1) Keep trying to log in at different times - the system really does work better during off-peak hours, usually early morning or late evening. 2) Make sure you're using the correct login credentials. Sometimes people create multiple IRS accounts accidentally and end up logging into the wrong one. 3) If you submitted your payment plan application online, there should have been a confirmation number or reference ID. Keep that handy - you'll need it when you eventually get through to someone. 4) Even if your payment plan isn't officially approved yet, the IRS usually won't penalize you for late payments if you can show you applied in good faith before the deadline. But definitely document everything. The 3-week mark is still within normal processing time, though I know it's stressful not knowing. Most people I know who've been through this process say it took 4-6 weeks to get full confirmation and see their accounts update properly.

Has anyone dealt with the reverse problem? The IRS still thinks my grandmother is alive even though she passed away 2 years ago. We've sent death certificates multiple times but they keep sending her notices about unfiled returns.

This exact thing happened to my brother-in-law last year! The IRS had him marked as deceased due to a clerical error when his father passed away - somehow they mixed up the Social Security numbers during the estate processing. Here's what worked for us: First, don't panic about filing your joint return. You can request an automatic 6-month extension (Form 4868) while you sort this out, which buys you time until October. The key is to tackle both the Social Security Administration AND the IRS simultaneously, not just one at a time. Have your husband go to the SSA office with his birth certificate, current driver's license, and Social Security card. Ask them specifically for a "Statement of Earnings and Benefits" printout - this will show his account is active and he's alive. While you're doing that, call the IRS Practitioner Priority Service line at 1-866-860-4259. It's technically for tax professionals, but they'll help with urgent issues like this. Tell them it's an "erroneous death indicator" case and you need it expedited because it's affecting your ability to file your current year return. Keep detailed records of every call, including agent names and reference numbers. This whole process took us about 3 weeks to fully resolve, but it was worth doing it right the first time.

Just wanted to add one more important point - make sure you keep copies of all your documentation! Since you're crossing the border frequently from Canada, I'd recommend keeping a simple spreadsheet or calendar tracking your entries and exits. Even if you don't have perfect records now, start documenting going forward. Also, if you're unsure about any specific dates, you can request your I-94 travel history from CBP's website (i94.cbp.dhs.gov). This will show your official entries and exits which can help fill in gaps in your records. As a Canadian, some of your crossings might not show up if you didn't go through formal inspection, but it's still worth checking. The key thing is to be as accurate as possible on Form 8843 since it establishes your tax residency status. Good luck with your filing!

Just to add to all the great advice here - I went through this exact same situation two years ago as a Canadian F-1 student! One thing that really helped me was contacting my school's international student services office. They often have staff who are familiar with Form 8843 and can review your completed form before you submit it. Also, since you mentioned you live 15 minutes from the border, you might want to check if your bank or credit card statements can help reconstruct some of your travel dates. I used my transaction history to figure out which days I was on which side of the border when I didn't have other documentation. The most important thing is to be consistent and honest about your day counts. The IRS understands that border crossers don't always have perfect records, but they want to see that you made a good faith effort to be accurate. Don't stress too much - you're asking the right questions and getting good guidance here!

As someone who went the C-Corp route 5 years ago with similar income to yours, I want to share some real-world insights: 1. The administrative burden is significantly higher than pass-through entities. You'll need board meeting minutes, corporate bylaws, separate books, etc. 2. Medical expense reimbursement through a QSEHRA has been amazing - I deduct my family's healthcare costs pre-tax through the business 3. The retirement options are incredible. I've set up a cash balance plan that lets me put away almost $150k/year pre-tax, which is way beyond the limits of SEP IRAs or solo 401ks 4. The "double taxation" issue is real, but if you can keep money in the business for several years, the math often works out favorably 5. State taxes add another layer of complexity - some states have minimum corporate taxes or higher rates that can eat into the federal tax savings Worth noting that tax laws are always changing, so what works great now might not be optimal in 5 years.

Just throwing this out there - have you considered just staying as a sole proprietor but being more aggressive with retirement accounts and other tax strategies? I'm in a similar boat (31, single, ~$200k from consulting) and I've found that maxing out a Solo 401k with both employer and employee contributions plus setting up a SEP IRA has been enough to meaningfully reduce my tax burden without the corporate complexity. Also, you didn't mention what state you're in - that makes a HUGE difference. Some states have additional taxes on corporations that can wipe out the federal advantages.