As someone who's been through multiple IRS notices, I want to emphasize that you're handling this exactly right by asking for help and not panicking. The CP2000 notice you received is actually one of the more straightforward ones to resolve. Since you've identified the PayPal income as the likely issue, here are your next steps: 1. **Review the proposed changes carefully** - The letter should show exactly how much additional tax, interest, and penalties they're proposing. 2. **Gather your records** - Pull together any documentation about that translation work, including PayPal statements, any business expenses you had, and records of what you actually earned. 3. **Choose your response** - You have three options: - Agree completely (if their numbers match your records) - Partially agree (if you want to claim business deductions they don't know about) - Disagree (if their information is wrong) 4. **Respond by the deadline** - This is crucial. Even if you need more time to gather information, you can request an extension. The good news is that since this appears to be legitimate unreported income rather than an IRS error, the resolution should be straightforward. Just make sure to respond within the timeframe given, and don't let the tax terminology intimidate you - the IRS forms usually have clear instructions for each option.

I've been following this thread and wanted to add some perspective as someone who works in tax preparation. The advice here has been really solid - Miguel, you're absolutely on the right track with identifying that PayPal income as the issue. One thing I'd emphasize is to keep detailed records of your response. When you send in your partial agreement (which I'd recommend given those business expenses), make copies of everything and keep a timeline of when you sent it. The IRS can sometimes be slow to process responses, and having documentation helps if you need to follow up. Also, since English isn't your first language and tax terminology can be confusing even for native speakers, don't hesitate to have someone review your response before you send it. Many community centers and libraries offer free tax help during filing season, and they might still have volunteers available to help review IRS correspondence. The key thing is that you're handling this proactively instead of ignoring it. That puts you way ahead of people who just panic and do nothing. You've got this!

turbotax is such a scam with there fees fr fr 🤮

Make sure u keep checking ur transcript every week. amendments can take forever but sometimes they randomly process faster then expected

I had the EXACT same timeline. Filed Feb 22, got told to wait 90 days. I didn't take that answer. Called every single day for a week straight until I got someone who actually looked at my file instead of just reading the script. They found that my return was just sitting there waiting for someone to review the documents I'd already sent in. Got my refund 10 days later. Don't just accept the 90-day answer - keep pushing.

I'm dealing with something very similar right now! Filed on February 18th and got the same "wait 90 days" response. What's really frustrating is that I run a seasonal landscaping business and this delay is hitting right when I need to purchase equipment for spring. I've been reading through all these responses and it sounds like there might be more options than what the first representative told you. Has anyone here had success with calling at different times of day to reach different representatives? I'm wondering if the 7 AM strategy mentioned by Ellie Simpson actually works, or if there are other optimal calling times. Also curious about the transcript analysis tools - seems like understanding what codes are actually on your account could help determine the best approach. The cash flow impact is real for small business owners like us. Even if we can't expedite the process, it would be helpful to at least understand what's actually causing the delay versus just getting the standard "wait 90 days" response.

Does anyone know which tax software handles this situation best? I'm using TurboTax and it keeps asking me to input a 1099-K that I don't have...

You're absolutely right to be proactive about this! I had the same concern with my online sales last year. The IRS actually expects you to report ALL income regardless of whether you receive a 1099 - it's your legal obligation whether the form shows up or not. Since you have your sales records from Shopify, you're in great shape. Just report your gross income on Schedule C and deduct any legitimate business expenses (Shopify fees, advertising, materials, etc.). The 1099 threshold confusion this year means many people are in your exact situation, and the IRS is well aware of it. One tip: save screenshots of your Shopify dashboard showing your total sales for the year. This creates a paper trail in case you ever need to prove your income reporting was accurate. Don't let the missing 1099 delay your filing - you've got everything you need to file correctly right now!

Don't forget about state taxes too! Federal is only part of the equation. Some states tax capital gains at the same rate as ordinary income, while others have special rates or exemptions. I sold SPP shares last year and was surprised that my state (California) wanted a bigger cut than I expected. The discount portion was fully taxable as regular income at both federal and state levels.

Great thread everyone! As someone who just went through this process, I wanted to add a few practical tips that helped me: 1. **Keep meticulous records from day one** - Don't wait until tax time to organize your SPP transactions. I created a simple spreadsheet tracking each purchase with columns for: date, shares purchased, price paid, fair market value that day, and discount received. 2. **Check if your broker provides tax documents** - Some SPP administrators will send you supplemental tax forms (like Form 3922 for qualified plans) that show the discount amounts. This makes reporting much easier than trying to calculate everything manually. 3. **Consider tax-loss harvesting** - If you have other investments with losses, you might be able to offset some of the gains from your SPP sales. Just be aware of wash sale rules if you're buying and selling similar stocks. 4. **Plan your sales strategically** - Since you mentioned needing money for a house down payment next year, consider selling your longest-held shares first to take advantage of long-term capital gains rates, and maybe spread the sales across tax years if it makes sense for your bracket. The complexity is real, but once you understand the basics it becomes much more manageable. Good luck with the house purchase!