One thing no one's mentioned - report the preparer! If they're filing fraudulent returns, they're doing it to other people too. You can file Form 14157 (Complaint: Tax Return Preparer) with the IRS. If you suspect your refund was inflated through fraud, also file Form 14157-A. The IRS takes preparer fraud seriously because it affects their whole system.

I'm a seasonal preparer and just want to point out that sometimes legitimate preparers DO find deductions/credits that people miss when they self-prepare. Before assuming fraud, check if: 1) You might have qualified for EIC you didn't know about 2) Your education expenses qualified for American Opportunity Credit 3) You had self-employment deductions you didn't realize were valid 4) Your filing status changed in a beneficial way Not all big refunds are fraud - sometimes it's just expertise! Ask your preparer to walk through each deduction with you.

Has anyone dealt with dissolving an S-Corp that had PPP loans or EIDL during covid? We got both and I'm not sure if that affects the dissolution process at all.

I went through S-Corp dissolution in Texas last year and want to echo what others have said - your accountant's advice is incorrect on both counts. You can dissolve an S-Corp at any time during the year, not just at year-end. And you absolutely cannot skip quarterly filings just because you're planning to dissolve. Here's what I learned the hard way: even if you're losing money, you may still have employment tax obligations (payroll taxes, unemployment insurance) that continue until the business is officially closed. Missing these can result in penalties that accrue daily. The dissolution process itself took me about 10 weeks from start to finish. I had to file with both the state and IRS, settle all outstanding obligations, and issue final K-1s to shareholders. The final tax return covered the period from January 1 to the dissolution date. One thing that caught me off guard was that even though we had losses, there were still some tax implications when we distributed the remaining assets (mostly office equipment) to shareholders. Make sure you understand the tax consequences before you start the process. My advice would be to get a second opinion from a tax professional who specializes in business dissolution, or use one of the resources others have mentioned to get proper guidance. Don't let this drag on - the sooner you start the proper process, the sooner you'll be done with all the filing requirements.

ask him to explain EXACTLY what deductions or credits he's planning to use that turbotax isn't giving you. if he can't explain it clearly or gets defensive, run away!!!! my cousin's tax guy did this last year, claimed a bunch of fake business expenses and education credits she didnt qualify for. she ended up getting audited and had to pay back $4200 plus penalties!!!

This sounds like a classic case of a preparer who's going to claim deductions you don't qualify for. The jump from $1,450 to $3,200+ for a straightforward W-2 + side gig situation is a huge red flag. Here's what I'd recommend: Before you give this guy any documents, ask him to write down exactly which deductions or credits he plans to claim that TurboTax missed. If he mentions anything about business expenses for your W-2 job, home office deductions you don't qualify for, or education credits you're not eligible for - walk away immediately. The "knows all the tricks" line is what every shady preparer says. Legitimate tax professionals explain their strategies clearly because they're following actual tax law, not trying to game the system. Remember, even if this guy prepares your return, YOU are the one who signs it and YOU are responsible if the IRS comes after you for improper deductions. The extra $1,750 he's promising could easily turn into thousands in penalties and interest if you get audited. Trust your gut - if it feels too good to be true, it probably is. Stick with reputable software or find a CPA who will explain their work transparently.

Has anyone had luck getting an IP PIN with a foreign address? I'm an expat living abroad and can't get past the address verification step in the online system. The international IRS number is even harder to get through on than the domestic one.

I went through this exact same nightmare last year! What worked for me was creating an IRS online account first at irs.gov/account. Once you have that set up, you can access the "Get an IP PIN" tool more easily. The key thing that helped me was having my prior year tax return handy - you'll need the exact AGI (Adjusted Gross Income) from line 11 of your 2023 Form 1040. Also make sure you're using a phone number that's been in your name for a while, as that's part of their verification process. If the online verification fails (which happens to about 30% of people), don't panic! You can still call the IP PIN hotline at 800-908-4490, but try calling right when they open at 7 AM EST - that's when you have the best chance of getting through quickly. I got through in about 20 minutes when I called first thing in the morning. The $3,200 refund should still come through fine once you get your PIN and file. The IRS actually processes refunds pretty quickly once they receive a complete return - usually within 21 days. Good luck!

As someone who's made ISO mistakes before, I strongly recommend keeping a spreadsheet with all your grant dates, exercise dates, fair market values, and exercise prices. It's easy to lose track, especially if you have multiple grants or partial exercises. Also, don't forget about state taxes! Everyone focuses on federal, but states have different rules for how they treat ISO dispositions.

This is such a timely discussion! I just went through this exact situation last month. One thing that really helped me was understanding that the "disqualifying disposition" ordinary income treatment only applies to the spread at exercise, not the entire gain. So in your case, Mateo, if you sell now for $42,000 and you paid $12,000 for shares worth $35,000 at exercise, here's what happens: - The $23,000 spread at exercise becomes ordinary income (taxed at your regular income rate) - The additional $7,000 gain ($42,000 - $35,000) is treated as short-term capital gains This is different from a qualifying disposition where the entire $30,000 gain ($42,000 - $12,000) would be long-term capital gains. Also, don't forget you may have already triggered AMT liability when you exercised in March 2024, regardless of whether you sell now or later. That $23,000 spread was an AMT preference item in 2024. The decision really comes down to: pay ordinary income rates on $23,000 now + short-term capital gains on $7,000, versus waiting and potentially paying long-term capital gains rates on the full $30,000 (assuming the stock price holds).