This is 100% a tax scam called "refund fraud" and it's actually really common. The preparer is likely falsifying your coworkers' income or creating fake business expenses. Those ridiculously high refunds are a massive red flag. I worked in a tax office where someone was doing this. The preparer was fired when the company found out, but dozens of clients got audited. The worst part is the preparer had moved on and disappeared while the clients were left dealing with the IRS. They all had to repay the fraudulent refunds plus interest and penalties. The IRS is actually pretty good at catching these schemes. They have systems that flag returns with unusually high refunds compared to income levels. Your coworkers should immediately get a copy of their returns and review what was claimed. If they find false information, they should file amended returns ASAP before the IRS comes to them.

Tell your friends to RUN from this tax preparer immediately! I see several specific red flags that indicate what kind of scam this likely is: 1. If your coworkers don't own businesses but are getting huge refunds, the preparer is probably creating fake Schedule C businesses with losses to offset their W-2 income 2. The "meet at Starbucks" thing is classic for fly-by-night preparers who don't want a traceable location 3. The rush to "get refunds before IRS changes rules" is nonsense designed to pressure people I've seen cases where preparers like this file the return electronically, showing the client one version but actually submitting a different version to the IRS with all kinds of fake deductions. By the time the IRS catches up (and they will), the preparer is long gone.

I'm dealing with something very similar right now! Got a notice saying I owe $1,247 plus interest on my 2290 truck tax, but I have the canceled check from when I paid it back in February. The most frustrating part is they definitely processed it - I can see it cleared my business account. From what I'm reading here, it sounds like this is happening to a lot of people with Form 2290. I'm going to try the Business & Specialty Tax Line number that Dylan mentioned (866-699-4096) first thing Monday morning. Has anyone had success with just mailing in copies of the payment proof along with a letter explaining the situation? I'm worried about calling and getting stuck on hold for hours, but I also don't want the interest to keep building up while I wait for them to process mailed documentation. This whole situation is so stressful when you know you paid what you owe but they're treating you like a tax evader!

I've been dealing with IRS payment issues for years through my tax preparation business, and Form 2290 truck tax problems are unfortunately very common right now. The IRS has acknowledged there are systemic issues with how these payments get processed and applied to accounts. Here's my recommended approach based on what's worked for my clients: First, don't panic about the interest - if you can prove you paid on time, they'll reverse those charges once the error is corrected. Second, when you call that Business & Specialty Tax Line (866-699-4096), have your EIN, the exact payment date, amount, and check number (or confirmation number for electronic payments) ready before you dial. If you can't get through by phone, send a certified letter with copies of your payment proof to the address on the notice. Include the phrase "Request for Payment Trace" in your subject line - this helps route it to the right department faster. Most importantly, keep calling or following up every 2 weeks until it's resolved. These cases can take 30-45 days to fully process, but staying on top of it prevents it from falling through the cracks. The good news is once they locate your payment in their system, the correction usually happens quickly and they'll send you a letter confirming the account is settled.

Just a heads up - if your kids are under 18 and it's a sole proprietorship, having them as W-2 employees can save you both from paying Social Security and Medicare taxes on their wages. That's a 15.3% savings right there! My accountant saved me a ton by setting this up correctly last year.

One thing I haven't seen mentioned yet is documentation. Regardless of whether you go the W-2 or 1099 route, make sure you keep detailed records of the work your kids performed, hours worked (if applicable), and how you determined their pay. For seasonal work like yours, document what specific tasks they did - was it general labor following your direction, or more specialized independent work? Did they work set hours you assigned, or flexible schedules they controlled? These details matter a lot for proper classification. Also, consider having them fill out timesheets or work logs, even if they end up as contractors. It shows you're taking the classification seriously and helps protect you if there are ever questions. The IRS loves good documentation, especially with family business arrangements where they're naturally more suspicious. Since you mentioned this is your first time doing this, it might be worth consulting with a local tax professional who can look at your specific business structure and work arrangements. The potential penalties for misclassification often cost more than getting proper advice upfront.

Has anyone used the IRS transcript service for this? You can request a complete tax transcript that includes all filed schedules by using the Get Transcript tool on irs.gov. My bank actually preferred this over copies I provided because they knew it was coming directly from the IRS and included everything.

Great question! I went through this exact same situation with my credit union last year. The key thing to understand is that when banks say "ALL schedules," they literally mean every single schedule that was filed with your return, even if it shows zero amounts or doesn't seem relevant to your business. For your single-member LLC situation, you've covered the main ones (C, SE, and 1), but they might also want to see: - Schedule 2 (Additional Taxes) - if you had any additional taxes beyond what's on the main form - Schedule 3 (Additional Credits and Payments) - shows any tax credits you claimed - Any other schedules that were part of your original filing The easiest approach is to send them a complete copy of everything you filed with the IRS, including all pages. Banks often use third-party verification services that expect to see the entire return package exactly as it was submitted. If you're not sure what you originally filed, you can get an official tax transcript from the IRS website (irs.gov/individuals/get-transcript) which will show exactly what schedules were included in your return. This is actually what many banks prefer since it comes directly from the IRS. Don't stress too much about it - this is a standard request and once you provide everything, the process usually moves pretty quickly!

I've been self-employed for about 5 years now, and I've tried almost all the tax software options. Here's my two cents: TurboTax Self-Employed is good but expensive. It does handle Schedule C well and provides good guidance, but you're paying a premium for the brand name. H&R Block Self-Employed is similar in quality and price to TurboTax. TaxAct and TaxSlayer both handle Schedule C for significantly less money. FreeTaxUSA is my personal favorite - it handles Schedule C perfectly well, the interface is clean, and it's WAY cheaper than TurboTax. If your situation is truly simple as you describe (just income, standard deduction, QBI, and SE tax), any of these will work fine. The difference mainly comes down to how much guidance you want and how much you're willing to pay for it.

One thing no one mentioned yet - if your self-employment income is below a certain threshold (I believe it's around $73,000 for 2024), you can use the IRS Free File program to file for free, including Schedule C. Different companies participate in this program, including some versions of TurboTax, TaxSlayer, etc. Just go through the IRS Free File portal rather than directly to the tax software websites, otherwise they'll try to upsell you. This is different from the "free" versions advertised on their websites, which typically don't support Schedule C filing.