It seems, perhaps, that there might be a possible workaround worth exploring. In some cases, the IRS Taxpayer Assistance Centers can potentially accept alternative documentation for children in lieu of the actual Social Security card. This might include a birth certificate along with medical records showing your child's SSN, or possibly school records with the SSN listed. I was, quite frankly, surprised to learn this when I faced a somewhat similar situation. You would likely need to call ahead to the specific TAC office where you plan to verify and ask if they can accommodate this exception given your circumstances. The flexibility varies significantly by location and individual IRS employee discretion.

I'm going through something very similar right now - filed in late January and have been stuck in verification limbo for weeks. What's been most helpful for me is keeping detailed records of every call, including the representative's ID number and exactly what they told me. The inconsistent information is maddening, but having those records helped when I finally reached someone who could actually see my full account status. One thing that might help while you're waiting for the Social Security card - call your local SSA office directly and ask about expedited processing due to IRS verification needs. Some offices can flag your request as urgent for tax purposes. Also, if you have any other documents with your child's SSN on them (like tax documents from previous years, insurance cards, or medical records), bring those as backup even though they might not accept them. I've heard some TAC offices are more flexible than others depending on your specific situation. The financial strain is real - I totally get it. Have you looked into whether your state has any emergency assistance programs while you're waiting? Some states offer short-term help specifically for tax refund delays.

One thing no one has mentioned - if your OIC gets approved, you'll be on a compliance period for 5 years. You have to file all returns on time and pay all required taxes when due, or they can revoke the OIC and reinstate the full original debt plus interest. Also, any tax refunds you would get during the year your OIC is accepted will be kept by the IRS.

Lucas, I was in a very similar situation - owed about $18k from a 1099 mix-up and was paying $300/month that felt like it was going nowhere. The OIC process is definitely worth exploring, but you need to be realistic about your chances. The key thing is your "reasonable collection potential" - basically what the IRS thinks they can realistically collect from you over the next 1-2 years through your current payment plan. If you're healthy, employed, and can maintain that $250/month payment, they might not see you as a good OIC candidate. That said, if your financial situation has changed since you started the installment plan (lower income, increased necessary expenses, health issues, etc.), you might have a stronger case. The IRS approved my OIC for about 40% of what I owed, but my income had dropped significantly due to a job change. Before you dive in, I'd suggest getting on the phone with the IRS to discuss your options. They can sometimes modify your existing installment agreement to lower payments if your circumstances have changed, which might be easier than going through the whole OIC process. Just be prepared for the phone system nightmare - it took me multiple attempts to get through to someone who could actually help.

Has your friend considered just using QuickBooks Self-Employed and doing the reconstruction themselves? I was in a similar mess with my Etsy business and managed to import the last 2 years of bank/credit statements and categorize everything retroactively. It took about a weekend per year of transactions, but I managed to create a reasonable accounting system that my tax preparer was able to work with. The software lets you split transactions, categorize them, and export reports that look professional enough for tax purposes. For the inventory issue specifically, I just created a spreadsheet showing reasonable COGS calculations based on my sales and industry standards. Wasn't perfect but it was acceptable.

I went through something very similar with my freelance graphic design business - had about 4 years of terrible recordkeeping with just bank statements and random receipts stuffed in a shoebox. Here's what I learned from the experience: First, definitely start with a CPA rather than a tax attorney unless there are signs of serious legal issues. CPAs are much more cost-effective for reconstruction work and most have dealt with this exact situation many times. The cash method is absolutely your friend's best option here. For businesses under $26 million in gross receipts, you can generally use cash accounting which means you deduct expenses when paid rather than trying to match them to specific sales. This eliminates a lot of the complexity around timing issues. For the inventory question - if your friend's business qualifies for cash method, they may also qualify for the small business exception that allows them to treat inventory as non-incidental materials and supplies, which means they can deduct costs when the items are used or sold rather than maintaining complex inventory accounting. The key is being proactive. I spent about $2,800 with a CPA who specialized in small business reconstruction, and it was worth every penny. They were able to create defensible books going back 3 years using just my bank statements, credit card records, and about 40% of my actual receipts. Most importantly - this is fixable! Your friend isn't doomed. The IRS would much rather see someone make a good faith effort to comply than ignore the problem entirely.

Has anyone actually had success approaching their nanny family about this after the fact? I'm in the same boat and worried about creating an awkward situation or even losing my job if I bring it up.

I'm dealing with a similar situation right now! Reading through all these responses has been really helpful. It sounds like the consensus is that you should definitely push for proper W2s since you're clearly an employee, not a contractor. From what I'm gathering, your best options are: 1. Approach the families with educational materials about household employment laws 2. If they refuse, file Form 8919 to report the wages and avoid overpaying self-employment tax 3. Consider Form SS-8 if there's a dispute about worker classification The point about losing $2,500+ by filing as self-employed really hit home - that's a huge amount! I think I'm going to try the educational approach first with my family, and if that doesn't work, I'll look into those IRS forms or maybe one of those services people mentioned to get proper guidance. Thanks everyone for sharing your experiences - it's reassuring to know I'm not alone in this situation and there are actual solutions available!

For anyone still wondering, I just went through this process for my visa application to the UK. Here's what worked for me: 1. For the most recent year (2024 taxes), I was able to go back into TaxAct and download the full return which included the Form 9325 equivalent. 2. For older years (2022-2023), I couldn't access my old TaxAct account, so I got Tax Return Transcripts from the IRS instead. 3. I included a brief cover letter explaining that the Tax Return Transcripts serve as official IRS confirmation that my taxes were filed and processed for those years. The visa was approved without any issues. From what the visa officer told me, they're mainly looking for proof that you've been tax compliant for the specified years, not specifically for Form 9325.

I'm dealing with this exact same situation right now! Just wanted to add that if you're using TurboTax, there's actually a specific way to find your Form 9325. After logging into your TurboTax account, go to "My Account" then "Tools" and look for "Prior Year Products." When you download your return, make sure you're downloading the "Complete PDF" version, not just the tax return itself. In my case, the Form 9325 was actually embedded in the very last pages of the complete PDF package. It wasn't a separate document but was included as part of the full filing package. The form shows your electronic filing PIN, date of acceptance, and confirmation that the IRS received your return electronically. Also, for anyone whose visa appointment is really soon - some embassies will accept a signed statement from your tax preparer (if you used one) confirming that your returns were e-filed and accepted. Obviously this won't work if you self-prepared, but it's worth checking if your embassy accepts this alternative documentation. Good luck with your visa application! I know how stressful this process can be when you're missing what seems like a critical document.