Has anyone used TurboTax for reporting crypto with all these fee adjustments? Their crypto section confused me last year.

I had the exact same confusion about bitcoin trading fees last year! After going through this myself, I can confirm what others have said - these fees definitely adjust your capital gains but aren't separate deductions. What really helped me was creating a simple spreadsheet to track everything. For each bitcoin sale, I had columns for: original purchase price, purchase fees, sale price, sale fees, and adjusted gain/loss. The formula was basically: (Sale Price - Sale Fees) - (Purchase Price + Purchase Fees) = Actual Gain/Loss. So for your $1,275 in fees, make sure you're adding purchase fees to your cost basis and subtracting sale fees from your proceeds before calculating gains. This will naturally reduce your taxable gains without needing to claim them as a separate deduction anywhere. Keep all your exchange statements showing these fees - the IRS loves documentation for crypto transactions. Good luck with your filing!

have you tried accessing your account online at irs.gov? sometimes there's info there that doesn't show up on the transcript or wheres my refund. might be worth a try

I'm going through almost the exact same situation right now! Filed in January with EIC and have been stuck with codes 570 and 810 for months. It's so frustrating not knowing what's happening or when it will resolve. From what I've learned lurking in these forums, it seems like the IRS is really cracking down on EIC claims this year, especially with self-employment income. The combination of your high withholding amount compared to your final income plus the substantial EIC is probably what triggered the review. I know it doesn't help much, but you're definitely not alone in this. I've been checking my transcript obsessively every Friday when it updates, hoping to see that magical 571 code show up. The waiting game is absolutely brutal when you need the money for important things like medical bills. Have you considered reaching out to your local Taxpayer Advocate office? I've heard they can sometimes help expedite cases when there's financial hardship involved. Might be worth a shot given your medical situation. Hang in there - from everything I've read, most of these eventually do resolve, it just takes way longer than anyone wants to wait. 😔

I think everyone is overthinking this. If your LLC remained active (you paid the fees, maintained registration, etc.) then it was never "started up" again - it was just continuing. Section 162 expenses are for ongoing businesses. Section 195 startup costs are for brand NEW businesses or completely new activities that are totally different from what you did before. The fact that you had a dormant period doesn't magically turn regular business expenses into startup costs.

Just wanted to share another perspective on this since I've dealt with IRS audits on business continuity issues. The key factor the IRS looks at is whether you had "regular and continuous" business activity, not whether you had revenue. In your case, maintaining business licenses, keeping a website active, and being ready to respond to business opportunities demonstrates continuity of operations. The IRS Revenue Ruling 58-112 specifically addresses this - a temporary cessation of business activity doesn't convert regular business expenses into startup costs as long as the business entity remains active and you maintain the intent to continue operations. Your Section 162 treatment was absolutely correct. I've seen taxpayers get into trouble when they incorrectly reclassify continuing business expenses as startup costs during audits, because it raises red flags about whether they understand their own business structure. Stick with what you filed - you're on solid ground here.

Just wondering - has anyone used those "tax relief" companies that advertise on radio/TV for situations like this? They claim they can settle with the IRS for "pennies on the dollar" but I'm not sure if they're legit or scams.

I've been through almost the exact same situation - 6 years of unfiled returns after getting overwhelmed by an initial IRS notice. The anxiety was paralyzing, but dealing with it was actually much less scary than I had built up in my head. Here's what worked for me: I started by requesting my wage and income transcripts online from the IRS website. This showed me exactly what employers had reported each year, so I didn't have to track down old W2s. Then I filed all the missing returns at once using tax software (TurboTax actually handles prior years pretty well). The biggest shock? I actually got refunds for 3 of those years because I had overpaid through withholdings. The refunds almost completely offset what I owed for the other years. Don't let the anxiety keep you frozen - the IRS genuinely wants to work with people who are trying to get compliant. You've been having taxes withheld this whole time, which shows good faith. Start with getting those transcripts and you'll have a much clearer picture of where you actually stand financially. You might be pleasantly surprised.

Quick warning - don't forget to pay self-employment tax on your farm income! Schedule F income is subject to self-employment tax (15.3% covering both Social Security and Medicare). This catches a lot of new farmers by surprise.

Omar, your buddy gave you solid advice! As a newcomer to farm taxes myself, I was confused about this same thing last year. Schedule F business deductions are completely separate from your personal standard deduction - you get both! Think of it this way: your farm is a business entity, so those $3,800 in feed, equipment repairs, and seed costs are business expenses that get deducted on Schedule F. Meanwhile, you as an individual can still claim the standard deduction (or itemize if that's better) for your personal expenses. They don't interact with each other at all. Just make sure you keep detailed records of all your farm income and expenses, and that you're operating with genuine profit intent. The IRS wants to see that this is a real business, not just a hobby. Good luck with your farming venture!