Don't overlook the importance of addressing state taxes too! Many people focus only on federal tax delinquency and forget that state tax authorities can be equally aggressive in collections.

I want to echo what others have said about not panicking - you're taking the right step by addressing this now. As someone who works in tax resolution, I see situations like yours regularly, and they are absolutely manageable. One thing I'd add to the excellent advice already given: when you do start working with a tax professional, make sure they explain the "substitute for return" (SFR) process to you. If the IRS has been filing returns on your behalf for some of the missing years (using only the income they know about with no deductions), you'll want to file proper returns to claim any deductions you're entitled to and potentially reduce what you owe. Also, don't be surprised if your actual tax liability ends up being less scary than you're imagining. Many independent contractors significantly overestimate what they'll owe because they forget about legitimate business deductions - home office expenses, equipment, professional development, travel, etc. The key is to be thorough and honest in your reconstruction of those missing years. Your future self will thank you for taking action now rather than letting this drag on any longer.

I dealt with this exact same code 6657 penalty situation last year and successfully got it removed! Here's what I learned: **Most important tip**: Request abatement under BOTH "reasonable cause" AND "First Time Penalty Abatement" if you qualify. Many people don't realize you can use both arguments in the same letter. **For your letter, include**: - Clear statement that you're requesting abatement of IRC Section 6657 penalty - Explanation that payment was properly set up through TurboTax with sufficient funds - Bank statement showing available balance on the scheduled payment date - Copy of your TurboTax payment confirmation/screenshot - Statement that the same account worked when you paid manually later **Key phrase to use**: "The payment failure was due to circumstances beyond my control and not due to willful neglect or intentional disregard of tax obligations." **Important**: Send to the correspondence address on your CP14 notice (usually in the upper right corner), NOT the payment address. Use certified mail with return receipt. The whole process took about 45 days for me, and I got the full $235 penalty refunded plus interest. Don't give up - these technical payment failures are often the IRS system's fault, not yours. You have a strong case for abatement!

I went through almost the identical situation last year! The IRS direct debit system definitely has technical glitches that aren't the taxpayer's fault. Here's my step-by-step approach that worked: **For your abatement letter, include these key elements:** - Your personal info (name, SSN, address, tax year 2023) - CP14 notice number and date - Specific request for "abatement of Internal Revenue Code Section 6657 penalty" - Clear explanation that you had sufficient funds and payment was properly set up through TurboTax - Attach bank statement showing available balance on the scheduled payment date - Include TurboTax payment setup confirmation/screenshot - Emphasize that the same account worked when you paid manually afterward **Critical language to use:** Request abatement under "reasonable cause due to circumstances beyond my control" AND mention "First Time Penalty Abatement" if you've had clean compliance for the past 3 years. **Logistics:** Send to the correspondence address on your CP14 (not the payment address), use certified mail with return receipt requested. The fact that your bank account had sufficient funds and the payment worked later strongly supports that this was a system error, not your fault. I got my $190 penalty completely removed in about 6 weeks using this exact approach. Don't pay the penalty upfront unless you're worried about interest - if they approve abatement, you'll avoid the penalty entirely. Good luck! This is definitely worth fighting since it wasn't due to your error.

has anyone actually received their ertc refund yet??? filed 941-x last february and still nothing. getting worried the money will never come at this point :

I can confirm what others have said - your accountant is definitely wrong about claiming ERTC on current year taxes. As a small business owner who went through this process last year, you absolutely must file Form 941-X amendments for each qualifying quarter. I made the mistake of trusting my original CPA's advice (similar to yours) and almost filed incorrectly. The ERTC is specifically tied to payroll taxes from those pandemic quarters, not income taxes. There's no mechanism in the tax code to shift it to current year filing. My advice: find a new accountant who understands ERTC rules properly, or at minimum get a second opinion from someone who specializes in employment tax credits. The penalties for filing incorrectly could be severe, and you don't want to deal with that headache later. The extra paperwork for proper 941-X filings is worth doing it right the first time.

Just want to add another important tip - if you're using a credit card to pay your CP14 balance, check if your card offers any cash back or rewards for tax payments. Some cards categorize these payments as "government services" which might earn you points. Also, make sure you're not close to your credit limit before making the payment. I've seen people have their payments declined because they didn't account for the processing fee on top of the balance owed. The last thing you want is a failed payment when you're trying to stop penalties from accumulating! And definitely double-check that you're using one of the IRS-approved processors (PayUSAtax, Pay1040, or ACI Payments). There are some sketchy websites out there that look official but aren't actually authorized by the IRS.

I went through this exact same situation last month with a CP14 notice. Here's what worked for me: 1. Use the IRS.gov website to access the approved payment processors - don't Google them separately as there are fake lookalike sites. 2. For the payment category, select "Form 1040 payment" or "Individual tax payment" - there's no specific CP14 option. 3. Make sure to enter the correct tax year from your notice (probably 2024), not the current year you're making the payment. 4. Have your SSN, notice number, and exact balance amount ready before starting. I used Pay1040 and it worked perfectly. The fee was about $15 on a $800 payment. The key thing is making sure all your identifying information matches exactly what's on the CP14 notice so the payment gets applied correctly. One more tip - set up an online IRS account if you don't have one already. Even though their payment system was down when you tried, you can usually track when your payment gets processed and see your balance update in real time once it goes through.

Don't forget about the business use percentage! If you're using your Santa Fe for both personal and business purposes, you can only depreciate the business portion. For example, if you use it 70% for business and 30% personal, you can only take depreciation on 70% of the cost. Also, have you considered just taking standard mileage for 2022 and 2023 instead of actual expenses with depreciation? With your low income, it might be simpler and possibly more beneficial.

Your situation is more common than you think! The good news is that filing late doesn't disqualify you from bonus depreciation - what matters is when you actually placed the vehicle in service for business use. Since you bought the Santa Fe in March 2022 and presumably started using it for business then, you can still claim 100% bonus depreciation for 2022. However, you'll face late filing penalties and interest on any taxes owed. Given your low income across 2022-2023, I'd strongly recommend running the numbers on a few different scenarios: 1. **100% bonus depreciation in 2022** - This will likely create a large NOL that carries forward 2. **Section 179 election** - You can choose exactly how much to deduct (maybe just enough to zero out your 2022 income) 3. **Standard mileage method** - Might be simpler and more beneficial given your income levels With three Schedule Cs and varying income levels, the optimal strategy isn't obvious. You'll need to track business use percentage carefully and allocate between your different businesses based on actual mileage. Consider getting professional help given the complexity - whether that's a tax software that can model different scenarios or speaking with a tax professional who can run the numbers for your specific situation.