Just a heads up - if you file and pay your back taxes, make sure you also remember to CHARGE AND COLLECT the correct sales tax going forward!!! Seems obvious but I made this mistake. I was so focused on fixing the past problem that I didn't immediately update my online shop to start collecting sales tax, and it caused me a whole second headache. Most e-commerce platforms (Shopify, Etsy, etc.) have built-in tools to automatically calculate and collect the right sales tax rates. Turn those on ASAP so you don't dig yourself a deeper hole while trying to fix the original problem.

I work for a state revenue department and wanted to clarify something important about marketplace facilitator laws. As of 2019-2021, most states (including yours likely) passed laws requiring large online marketplaces like Etsy, Amazon, eBay, etc. to collect and remit sales tax on behalf of sellers. HOWEVER - this only applies to sales made THROUGH those platforms. If you're selling directly through your own website, at craft fairs, or through other channels, you're still responsible for collecting and remitting the tax yourself. The good news for your situation is that if some of your sales were through marketplaces during the period in question, you can subtract those amounts from your total liability since the platforms should have already handled the tax collection and remittance for those transactions. When you respond to the revenue department, make sure to break down your sales by channel - marketplace sales vs. direct sales. This could significantly reduce what you actually owe. Also, don't forget that many states have small seller exemptions (usually around $100K in sales or 200 transactions annually), so double-check if you even exceeded the threshold that would require registration.

25 One thing nobody's mentioned yet: you might need to pay STATE taxes too, not just federal! For me in California, I set aside an extra 8% just for state taxes on top of the 25% for federal. Check your state tax rates and factor that in!

Great point about state taxes! Since you're in Ohio, you'll need to factor in Ohio state income tax too. Ohio has a progressive income tax rate that ranges from 0% to 3.99%. For your income level (around $24k annually), you're probably looking at around 1-2% for state taxes. So I'd recommend setting aside about 27-30% total: roughly 25% for federal (income + self-employment tax) and 2-3% for Ohio state taxes. Ohio also requires quarterly estimated payments just like federal, so you can usually pay both at the same time. Don't forget Ohio also has local income taxes in many cities - check if your city has additional income tax requirements. Some cities in Ohio charge an additional 1-3% on top of state taxes. You can check the Ohio Department of Taxation website to see what applies to your specific location.

According to the IRS.gov support page at https://www.irs.gov/help/account-help, you need to use the "Secure Access" recovery process. I'm in a similar boat - need my transcript ASAP for a mortgage application! The quickest way is to call the IRS Transcript request line at 800-908-9946 and request a mailed transcript (takes 5-10 business days) while you sort out your online access. You can also use Form 4506-T from the IRS website to request transcripts by mail.

I went through this exact same frustration last year! The key thing to know is that you can't actually "reset" your old account if you don't have access to that email anymore - you'll need to create a completely new account. Here's the step-by-step that worked for me: 1. Go to IRS.gov and click "Get Transcript Online" 2. Instead of trying to sign in, click "Create Account" 3. You'll be redirected to ID.me for identity verification 4. Have your driver's license ready - you'll need to take a photo of it 5. You might need to do a video call for verification (took about 10 minutes for me) 6. Once verified, you can immediately access your transcripts The whole process took me about 30 minutes, but it was so worth it to finally get access again. Since you mentioned this is urgent for your mom's medical expenses, I'd also suggest calling the transcript line at 1-800-908-9946 as a backup - they can mail you a transcript in 5-10 business days while you work on getting online access sorted out. Hope this helps and hope your mom is doing okay!

As someone who works in public finance, I think it's important to understand that "shutting down the IRS" isn't really a binary on/off switch. Even the most aggressive reform proposals recognize that some form of federal revenue collection would need to continue. The more realistic scenarios involve restructuring how taxes are collected rather than eliminating federal taxation entirely. This could mean consolidating collection functions with other agencies, implementing different tax mechanisms (like the consumption taxes others mentioned), or significantly simplifying the current system. What's often overlooked is that the IRS also handles non-tax functions like processing economic impact payments, child tax credits, and other federal programs. Any replacement system would need to account for these administrative responsibilities too. The transition period would be the biggest challenge - you can't just flip a switch and change how $4+ trillion in annual revenue gets collected without massive preparation and coordination across all levels of government.

This discussion has been really eye-opening! As someone who's always just filed my taxes and hoped for the best, I never realized how interconnected the IRS is with so many other government functions. What strikes me most is the timeline aspect - 7-10 years for a major transition seems both reasonable given the complexity but also politically challenging. How do you maintain momentum for such a massive reform across multiple election cycles? I'm also wondering about the international implications that haven't been mentioned yet. How would foreign tax treaties work? What about Americans living abroad who currently deal with IRS requirements? Would whatever replaces the IRS need to maintain all those international relationships and agreements? The logistics seem almost impossibly complex when you really think through all the moving pieces. Makes me appreciate that our current system, however flawed, at least functions at this massive scale.

Pro tip: If you can't get through on the phone, try reaching out to your local Taxpayer Advocate Service. They can sometimes help navigate tricky situations like this.

Another option to consider: if you have your old tax returns or W-2s handy, the IRS can sometimes verify your identity using info from those documents instead of relying on ID.me. When you call, ask specifically about alternative identity verification methods. I had a similar issue last year and they were able to walk me through it using my prior year AGI and some other basic info. Takes longer but it works!