Wow thanks for mentioning this! I had no idea about the 20% down payment requirement. Do you know if there are any exceptions to this rule? I'm cash poor right now which is part of my problem.

Yes, there's an exception if you meet the IRS low-income certification guidelines. If you qualify as low income, both the $205 application fee and the 20% down payment can be waived. The qualification is based on your household size and income compared to federal poverty levels. If you don't qualify as low income but still can't make the 20% down payment, you can choose the periodic payment option instead. This requires you to propose monthly payments and start making these payments while your OIC is being considered. The downside is if your offer is rejected, those payments won't be returned.

This is actually a misconception. Once an OIC is accepted and you fulfill the terms, that tax debt is settled permanently. However, there is a 5-year compliance period where you must file all required returns and pay all taxes on time. If you don't, the IRS can revoke the agreement and reinstate the original debt.

Thanks for mentioning the state filing! I totally wasn't thinking about that. Do I need to wait until the federal amendment is processed before doing the state one?

In most cases, you should file both amendments around the same time. You don't need to wait for the federal amendment to be processed before filing your state amendment. However, some states do require you to attach a copy of your federal amendment (Form 1040-X) to your state amendment form. Each state has their own amendment form and process. For example, California uses Form 540X, New York uses Form IT-201-X, etc. Check your state's tax department website for the specific form and instructions. The state amendment process is usually similar to the federal one, but processing times can vary significantly by state.

Did you have to pay immediately or did they bill you after processing the amendment?

10 Did you find the Chamber of Commerce membership worth the cost? I've been considering joining but wasn't sure if it would actually lead to clients or just be another expense.

3 The Chamber membership was absolutely worth it for me, but it depends on how active your local chapter is. Mine hosts weekly networking events and monthly small business seminars, so I had plenty of opportunities to connect with potential clients. The key isn't just joining but being consistently present and helpful. I volunteered to give short presentations about tax topics at events, which positioned me as an expert. I didn't hard sell my services - just provided useful information and made myself available for questions afterward. This approach consistently brought in 3-5 new clients per event.

8 I tried the roadside signs one year - total waste of money. Got maybe 2 clients from it. Digital billboards were slightly better but still not great ROI. What actually worked better was putting flyers in apartment complexes and on community bulletin boards at grocery stores and coffee shops. Much cheaper and targeted people in my actual service area.

Could you use Section 179 to write off a vehicle for a small rental car business? Or would that only apply to actual cars in the rental fleet?

You can potentially use Section 179 for vehicles used in your business, including those that support operations like yours might. However, there are specific limitations for passenger vehicles - typically around $18,000 for the first year (the exact amount changes annually). Vehicles actually in your rental fleet would be considered inventory rather than capital assets until you place them in service as rental vehicles. Once they're actively being rented, they become depreciable assets. But remember, Section 179 has specific rules for "luxury" passenger vehicles which limit the deduction regardless of business use percentage.

Ouch that sucks! What kind of documentation were you missing? I'm thinking of doing something similar for my business.

I tried using a regular CPA for my foreign accounts last year and it was a disaster. They missed the FBAR filing completely and had no idea how to handle the nominee situation. Had to amend everything later. If you have international accounts, especially with this nominee complexity, definitely get someone who specializes in expat or international taxes.

That's really helpful to know. I was hesitant to pay the higher fees for an international specialist, but it sounds like it could save me money and headaches in the long run. Did you find someone local or did you use an online service? I'm worried about missing some filing requirement and getting hit with those massive FBAR penalties I keep reading about.

I had no idea about Form 8938! The account had about $30,000 in it when the CD matured, so maybe I'm under the threshold? But now I'm worried about all these different forms. Do the FBAR and 8938 requirements still apply even if I use this "nominee" approach that others mentioned?

At $30,000, you're under the Form 8938 threshold if you're filing as single and living in the US, so that's good news. However, you would still need to file the FBAR if the account exceeded $10,000 at any point. Yes, the FBAR requirement applies regardless of the nominee situation - you still need to disclose the account since it's legally in your name. The nominee approach only affects how you report the income on your tax return, not the FBAR filing requirement. The good thing is that the FBAR is just an information return - filing it doesn't mean you owe tax on the funds.