Just wanted to add that if you're planning to pay off your tax debt immediately anyway, you might want to look into the IRS Fresh Start program. Sometimes they offer penalty abatement if you pay in full. Might save you a chunk of money since penalties can add up fast on $13,500!

Great advice from everyone here! As someone who's dealt with IRS collections professionally, I can confirm that without formal levy notices, your account won't be automatically frozen when the deposit hits. The IRS has to follow strict procedural requirements before taking funds. One additional tip - when you do pay off that $13,500, make sure to get a zero balance transcript from the IRS afterward to confirm everything is properly credited. Sometimes payments can take a few weeks to fully process, and having that documentation protects you if any collection notices were already in the mail before your payment cleared. Also, definitely explore that Fresh Start program Sophia mentioned. First-time penalty abatement can be significant on a debt that size, especially if you've been compliant with filings and payments since the business closed. Worth a phone call to ask about it when you make your payment.

I went through something similar last year with about $8k in back taxes from some 1099 work. After doing a ton of research, I ended up handling it myself and it was way easier than I expected. The key thing is to not panic - the IRS actually wants to work with you if you're proactive. I called their main number early in the morning (around 7 AM when they opened) and got through in about 45 minutes. The agent was actually really helpful and walked me through setting up a 60-month payment plan. One thing I learned is that you can request "first-time penalty abatement" if you've been compliant in previous years. This can wipe out a big chunk of the penalties (not the actual tax owed, but the penalty fees). For me, this saved about $1,200. My advice: try the DIY route first. If you get stuck or overwhelmed, then consider getting help. But for a straightforward situation like yours, you can probably handle it yourself and save thousands in fees.

I went through a very similar situation about 18 months ago - owed around $14k from some consulting work where I messed up the quarterly payments. The stress and panic you're feeling is totally normal, but honestly the IRS is much more reasonable than those scary letters make it seem. I initially got quotes from three different tax resolution companies and they ranged from $3,500 to $6,200 just for their fees. One place literally told me they could "probably" get my debt reduced to $2,000 but couldn't guarantee anything. When I pressed them on specifics, it became clear they were just going to submit the same forms I could do myself. Instead, I ended up going the DIY route and it saved me thousands. Set up a 72-month payment plan directly through the IRS website for about $205/month. The whole process took maybe 30 minutes online, and I didn't have to deal with any pushy salespeople or worry about getting scammed. The reality is that for most people with straightforward tax debt like yours, those expensive services just aren't worth it. The IRS has gotten much better about working with taxpayers who are proactive about resolving their debt. Save your money and try handling it yourself first!

Your congressman's office can help! Mine got involved and suddenly IRS started moving on my case real quick

I went through something similar last year. After 6 months of getting nowhere with regular customer service, I filed a complaint with the Treasury Inspector General for Tax Administration (TIGTA). You can do it online at treasury.gov/tigta. They actually investigate IRS processing delays and can force action on stuck cases. Also consider sending a certified letter to the IRS office that handles your region - sometimes written complaints get more attention than phone calls. Keep pushing and don't give up!

If ur making under $5000 dont even bother filing tbh. I didnt file for 3 years when I was doing odd jobs and nothing happened. The IRS doesnt care about small amounts.

As someone who went through this exact same situation when I was 20, I want to emphasize a few key points that might help you feel more confident about the process: First, don't stress too much about perfect record-keeping for this past year - the IRS understands that many people doing casual work don't have pristine records. Make your best good-faith estimate of your total income and document how you arrived at that number. For your Schedule C, you can deduct reasonable business expenses even without perfect receipts - things like tennis balls, equipment, gas money for traveling to lessons, etc. Just be reasonable and honest. Going forward, definitely set up better tracking. I use a simple spreadsheet with columns for date, student name, amount, and method of payment. Takes 30 seconds per lesson and saves hours during tax season. One thing I wish someone had told me: even though you'll owe self-employment tax (about 15.3% on your net profit), you'll likely get most or all of your income tax back due to the standard deduction. So don't panic about owing huge amounts. The Roth IRA is absolutely worth it at your age - compound growth over 40+ years is incredible. You're making a really smart financial decision here!

Has anyone used TurboTax or H&R Block for filing US taxes from Canada? I'm wondering if the regular versions work or if I need something special for expat taxes.

I was in a very similar situation a few years ago - US citizen living in the UK with no income for several years due to health issues. The anxiety about being "in trouble" with the IRS was really overwhelming! Here's what I learned: Yes, technically you should file even with zero income, but the IRS is generally understanding about people who genuinely didn't know about the requirement, especially when no taxes are owed. The key is getting compliant going forward. Since you have no income, you likely qualify for the Streamlined Filing Compliance Procedures, which is designed for people in exactly your situation. You'll need to file the last 3 years of tax returns (even if showing zero income) and 6 years of FBARs if you have Canadian bank accounts over $10k. The good news is that with zero income, you won't owe any taxes or penalties. I'd recommend getting professional help just to make sure everything is filed correctly and to give you peace of mind. Don't let the anxiety eat at you - this is much more common than you think and very fixable!