Does ATX include all the forms I'd need for basic 1040s with some small business clients? And do they offer any kind of training or is it mostly learn-as-you-go?

Yes, the basic package includes everything you'll need for 1040s including all schedules (A, B, C, D, E) and common small business forms. They actually have pretty good built-in help content - when you're on a specific form, you can access relevant IRS instructions and explanations right there. They do offer some training webinars too, usually around the beginning of tax season. The learning curve isn't too steep if you already have some tax knowledge. Their customer service can help with software questions, but they won't give tax advice (no software company really does that for liability reasons).

Absolutely agree about need for research tools! I use both TheTaxBook and sometimes CCH answers when things get complex. Do you think the online version of TheTaxBook is better than the physical books? I'm old school and like having the paper versions.

Thanks for sharing that real-world example. Did your cousin face any criminal charges, or was it just the financial penalties? My friend is terrified of actually going to jail over this.

No criminal charges in his case. The IRS generally pursues criminal cases only when there's evidence of intentional fraud, hiding assets, or extremely large amounts. They're mostly interested in collecting the money. That said, he did have to deal with a revenue officer who monitored his compliance for several years, which was stressful. The biggest impact was financial - the penalties and interest nearly doubled what he would have paid if he'd filed on time. And the stress definitely took a toll on his health and marriage.

Can someone actually get caught up without using a lawyer or professional service? Like, are there resources to DIY this if you can't afford professional help?

Any recommendations for good E&O insurance providers specifically for tax preparers? My quote from [insurance company] seemed crazy high.

Check out Insureon or NAEA's member insurance program if you're an Enrolled Agent. I've found the NAEA rates to be quite reasonable. Also look at Landy Insurance Group - they specialize in coverage for tax professionals and understand the specific risks. Make sure your policy covers representation during audits, not just errors. The difference in premiums isn't huge but the protection is significant. My premium is around $1,200/year for $1M in coverage, which is well worth the peace of mind.

That's a really good point about specializing. I've been wondering if the traditional tax office model will even exist in 10 years with all the AI stuff happening. Do you think it's still worth buying an existing practice with all these changes coming?

Is there an easy way to fix this? I transferred some ETH from Coinbase to Robinhood in 2022 and I'm worried my 1099 is showing zero cost basis for those.

You'll need to manually adjust the cost basis on Form 8949. There's a column specifically for corrections. Just enter the correct amount you originally paid and include a brief explanation code (usually "B" for basis adjustment). Keep all your receipts and transaction records though! If you get audited, you'll need to prove your actual cost. For your ETH transfers, you'll need the original purchase price from Coinbase. The annoying part is Robinhood won't know that info, so your 1099 will likely show $0 basis. That's why many crypto traders end up significantly overpaying on taxes if they don't make these adjustments.

Robinhood is just following their internal reporting system. You're right that wash sale rules don't technically apply to crypto (it's treated as property not a security). When I did my taxes I had to manually adjust this on my forms and include an explanation.

I tried that first actually! One of my employers went out of business completely (restaurant that closed) and the other isn't responding to any of my emails or calls. That's why I'm looking at the Form 4852 option as a last resort.

That's definitely a challenging situation! With the restaurant that closed, you're right that Form 4852 is your best option. For the non-responsive employer, sometimes reaching out through a different channel helps - like finding them on LinkedIn or contacting former coworkers who might have better contact information. Since you've made reasonable attempts to get your W-2s, you're absolutely doing the right thing by using Form 4852. Just document your attempts to contact them in case the IRS asks questions later.

Yes! FreeTaxUSA does support Form 4852. I used it last year when I couldn't get a W-2 from a summer job. When you enter W-2 information, there's an option that says something like "I don't have this W-2" and it walks you through creating the substitute form. It was pretty straightforward.