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!

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.

Just wondering if anyone here has experience with amended 720 forms? I messed up my first filing by using the wrong tax rate and am nervous about filing a correction.

Great question about Form 720 timing! I've been filing these for my small manufacturing business for about 3 years now. One thing I'd add to the excellent advice already given - if this is your first time filing Form 720, I'd strongly recommend doing a "dry run" of the form about 2-3 weeks before the deadline. Fill it out completely with your actual numbers, but don't submit it yet. This helps you identify any questions or issues while you still have time to get help. Also, since you mentioned handmade jewelry, double-check which specific excise taxes actually apply to your products. Not all jewelry items are subject to excise tax - it depends on factors like materials used and sale price thresholds. The IRS has specific guidelines for luxury goods that might not apply to all handmade items. For your first filing, I'd aim for mid-July submission (around July 15-20) to give yourself a buffer but avoid the last-minute rush. And definitely go electronic if possible - the confirmation receipt alone is worth it for peace of mind!

Just wanted to add that I made a huge mistake with my OIC by not being completely honest about a small side gig income. The IRS found out and instantly rejected my offer. If you have ANY side income or assets, disclose everything. They will find out and it's an automatic rejection if you're not 100% transparent. Also, check if you qualify for the "Fresh Start" program which has more flexible OIC terms. And sometimes an installment agreement might actually be better than an OIC depending on your specific situation and the amount of time left on the collection statute.

I went through the OIC process successfully about 18 months ago, so I can share some real-world insights. With your $47k debt and $3,100 monthly income, you're actually in a decent position for an OIC if you can demonstrate genuine financial hardship. A few critical tips from my experience: 1. **Documentation is everything** - The IRS will scrutinize every expense you claim. Keep receipts for everything and only claim legitimate necessary expenses. They have specific allowable amounts for things like housing, utilities, food, etc. 2. **Be conservative with your offer** - I initially wanted to lowball them, but my research showed that offers too far below their calculated "reasonable collection potential" get rejected immediately. Aim for something close to their formula. 3. **Timeline expectations** - My OIC took 8 months to get approved. During this time, collection activities stopped, which was a huge relief. 4. **Consider your collection statute expiration date** - If you're close to the 10-year mark, an installment agreement might actually be better than an OIC since the debt could expire naturally. The key is showing that paying the full amount would create genuine financial hardship while still offering something reasonable based on your actual ability to pay. Don't give up hope - it's definitely possible to get approved if you approach it methodically.

One warning about amending for the COVID distribution - make sure you check how this might impact any credits or deductions you claimed in 2020. When my spouse and I amended to include our 401k distribution (even with the 3-year spread), it pushed our income high enough that we lost part of our child tax credit. Still better than paying the 10% penalty, but something to be prepared for.

I'm dealing with a very similar situation right now! I took a COVID withdrawal in 2020 and completely missed filing Form 8915-E. Just got hit with a penalty notice last month. One thing I learned from my tax preparer is that you should also gather any documentation showing how COVID impacted you financially - like reduced work hours, job loss, or even increased expenses due to the pandemic. The IRS may ask for this when you file your amended return to prove the distribution was legitimately COVID-related. Also, regarding your HSA - if those expenses were truly for qualified medical costs related to your daughter's birth, you should be fine. Just make sure you have all the receipts and documentation ready. Hospital bills, doctor visits, even things like lactation consultant fees if you used HSA funds for those - it all counts as qualified medical expenses. The good news is that even though this is stressful now, the amended return process should resolve both issues. Just don't wait too long to file it since you're already a few years out from the original return date.