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 option nobody's mentioned yet - have you considered an Offer in Compromise? If your financial situation truly doesn't allow you to pay the full amount, even over time, you might qualify to settle the debt for less than you owe. The 433-F is actually part of that application process too.

I went through almost the exact same situation last year with an inherited 401k that created a huge tax bill. Here's what I learned from experience: The IRS will definitely scrutinize your Form 433-F carefully when the amount is over $50k, but they're not necessarily looking to reject your installment plan - they just want to make sure you're paying what you reasonably can afford each month. That said, if you have the ability to pay down to $50k first, I'd strongly recommend doing that. The streamlined installment agreement process for amounts under $50k is SO much simpler. You'll avoid the 433-F entirely, get faster approval (often automatic), and have fewer ongoing compliance requirements. One thing to consider: even if you pay down to $50k initially, you can always request to modify your payment plan later if your financial situation changes. The IRS is generally willing to work with taxpayers who are making good faith efforts to pay. Also make sure you're factoring in the setup fee for the installment agreement ($31-225 depending on how you apply and pay) and the ongoing interest/penalties. Sometimes it's worth exploring other financing options first if you have good credit.

Has anyone else noticed that the IRS sometimes flags returns with newly issued SSNs for review? This happened to my sister. It didn't mean anything was wrong, but her refund was delayed by like 8 weeks. Might want to file early if you can!

I had a very similar situation when I got my SSN in late 2023! Just wanted to confirm what others have said and add a few practical tips: You're absolutely eligible for both credits. The Child Tax Credit has no timing requirements for when YOU got your SSN - only that your daughter has a valid SSN (which she does). For EIC, as long as you have your SSN by the filing deadline, you're good. A few things that helped me: 1. Keep all documentation showing when you received your SSN - sometimes they ask for verification 2. If you're using tax software, it might flag your return as "unusual" but don't worry, that's normal for first-time filers 3. Consider filing a paper return if the software gives you trouble - I had issues with TurboTax not recognizing my situation properly Also, make sure you understand the income limits for both credits. EIC has pretty generous limits especially with a qualifying child, but CTC starts phasing out at higher incomes. Good luck with your filing!

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.