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Just saw the IRS released their new list of tax scams to be careful about this year. I'm honestly shocked at how many non-credentialed tax preparers are out there trying to rip people off! These people don't even want to sign the returns they prepare (huge red flag) while they push all these fake tax credits and supposedly "secret" deductions that don't actually exist. Has anyone else noticed how aggressive these scammers have gotten lately? My neighbor was telling me about some preparer who promised they could get her a $15,000 refund when she normally gets like $1,200. The guy wanted 30% of whatever refund she got! Thank god she called me before going through with it. I'm thinking of reporting the place but not sure if it'll do anything. What's your experience with these shady tax businesses? Anyone have advice on how to find legitimate preparers who won't get you in trouble with the IRS?
Filed my 2023 taxes back in February and still nothing. Looking at my transcript and seeing codes 571 and 290 but no direct deposit date. Already verified my identity through id.me months ago. Starting to lose my mind checking WMR every day. Anyone else dealing with this or know what these codes mean? I just received a Letter ID L0012865649 from Indiana Department of Revenue dated January 14, 2025 with a Form 1099-G. It shows: Recipient's Identification Number Box 2: State or local income tax refunds : $1106 Box 3: Refund is for tax year : 2023 State of Indiana FID : 356000158 Year of Issuance : 2024 The letter says "If you itemized deductions on your federal income tax return and claimed a deduction for state and local income taxes paid, you may need to report some or all of the amount shown in Box 2 to the IRS. Additionally, any of this refund amount reported as income on your federal income tax return should be deducted from your income on your Indiana tax return." It also mentions I can visit https://www.in.gov/dor/individual-income-taxes/form-1099-8 for FAQs or use Indiana's new e-services portal called INTIME (Indiana Taxpayer Information Management Engine) to view my individual tax account and message them with questions. But I'm confused because I'm still waiting on my federal refund from 2023! I filed in February, verified through id.me months ago, and keep seeing these 571 and 290 codes on my transcript with no DDD. Does this 1099-G from Indiana have anything to do with my federal refund delay? Is anyone else experiencing these long delays with the same transcript codes? I check WMR obsessively and it's driving me crazy.
Ugh I feel your pain! Been waiting since March 2023 myself with similar codes. That 1099-G from Indiana is totally separate from your federal refund - it's just saying you got a state refund in 2024 for your 2023 taxes, which you might need to report as income on your 2024 federal return if you itemized deductions. It has nothing to do with your federal refund delay. The 571/290 codes are actually good signs though - means they released a hold and made an adjustment. You should hopefully see movement soon! π€
Hey tax people! So this might be a weird question but I've been a sperm donor for about 8 months now at a clinic that's about 25 miles from my house. I go there twice a week so it adds up to quite a bit of driving. I was wondering if I can deduct the mileage on my taxes since technically this is "medical" related? Or maybe it counts as some kind of self-employment thing since I get paid a small amount each time ($75)? I've kept all my receipts and a log of my trips just in case. The clinic gives me a 1099 at the end of the year so I know I have to report the income, but can I offset some of it with the driving expenses? Really appreciate any help on this weird situation!
Anyone know if you should be making quarterly estimated tax payments on donation income? I just started doing this and don't want to get hit with penalties.
Great question! Since you're getting a 1099, you're absolutely right that this is treated as self-employment income. Here's what you need to know: **Yes, you can deduct mileage!** Use the business mileage rate (65.5 cents/mile for 2025), not medical. With your 50 miles round trip twice weekly, that's about 5,200 miles annually - roughly $3,406 in deductions. **File on Schedule C** - Report your donor income and expenses here. You'll also need to pay self-employment tax (15.3%) on your net profit after deductions. **Keep detailed records** - Your mileage log with dates, odometer readings, and trip purposes is perfect. Also save receipts for any other business expenses. **Consider quarterly payments** - Since no taxes are withheld, you may need to make estimated quarterly payments to avoid penalties if you'll owe more than $1,000. The math works in your favor: $7,800 annual income minus $3,406 mileage deduction = $4,394 net income subject to self-employment tax. Much better than paying tax on the full amount! You're doing everything right by keeping good records. This is a legitimate business expense that many people in similar situations can take advantage of.
Just got a Final Balance Due Reminder - Notice of Intent to Seize (Levy) or Rights to Property from the IRS. They're saying as of January 8, 2020, they haven't received my overdue tax after sending several notices. They're threatening to levy (seize) my property if I don't pay immediately, and they're considering my noncompliance an "active choice." The notice says I owe $9,193.81 immediately for my 2022 taxes, and they're auditing me specifically for EIC and dependent claims. They've given me instructions to pay directly online from my bank account through irs.gov/directpay by selecting "Make a Payment" and entering: - Reason for Payment: Balance Due - Apply Payment To: Income Tax - Form 1040 - Tax Period for Payment: 2022 I need to gather my taxpayer ID number, Form 1040, my filing status, address from the outstanding tax year, and my bank routing number. If they determine I incorrectly claimed EIC or dependents and I truly owe this money back, will they automatically take my 2024 refund? Or will they start garnishing my wages? I'm really stressed about this and need to know what to expect. Can they really seize my property over this? I don't even have $9,193.81 available right now. π
Whatever u do DONT IGNORE IT! Thats the worst thing u can do frfr. Stay on top of it and youll be fine
Had a similar CP75 audit situation last year - they definitely won't take your wages right away. The IRS has to go through a whole process before garnishment. First they'll send more notices, then offer payment plans. If you do owe the $9,193, they'll likely offset your 2024 refund first before considering wage garnishment. The key is responding to the audit with all your documentation - school records for your kids, proof they lived with you, income verification, etc. Don't let the scary language freak you out too much, just gather your paperwork and respond within 30 days. You got this! πͺ
After my divorce was finalized, I discovered something my ex never disclosed during the proceedings - he had significant unpaid taxes from his business that were never included on the financial affidavit. The IRS has been coming after ME for this debt and has already taken around $27,000 from my tax refunds over the past few years. During the height of the pandemic, it was literally impossible to get through to anyone at the IRS to discuss my situation. I finally consulted with a CPA who advised me to file Form 8857 for innocent spouse relief. I was told I should get at least partial relief, if not full relief from these obligations. Well, I just received the letter from the IRS and my innocent spouse relief claim was DENIED. I'm absolutely devastated. The letter mentions I can appeal the decision, but I don't even know where to start. Can someone please explain why I'm being held responsible for my ex's business tax debt that I knew nothing about? What options do I have at this point? The stress of this situation is overwhelming me and I don't know what to do next.
Has anyone had experience with the Tax Court route? My innocent spouse relief was denied twice (initial application and appeal), so I filed a petition with the Tax Court. Currently waiting for my court date and wondering what to expect.
I represented a client in Tax Court for innocent spouse relief. The process is much more formal than the administrative appeal. You'll need to prepare a solid case with exhibits and possibly witness testimony. Many cases settle before the actual hearing when IRS counsel reviews the evidence. The Tax Court judges tend to be more sympathetic to innocent spouse claims than IRS examiners, especially when there's clear evidence the petitioner was excluded from financial decisions. My client's case was settled favorably right before the hearing when we presented additional evidence of financial abuse in the marriage.
Thank you so much for sharing your experience! That's really helpful. I've been gathering additional evidence of financial control by my ex, including statements from our marriage counselor. Do you think I should try to get an attorney at this point, or can I continue representing myself? The cost is a concern but losing would be worse.
I'm so sorry you're going through this - the stress of dealing with the IRS over something that wasn't your fault is truly overwhelming. Based on what you've shared, you actually have a strong case for appeal. The fact that these were business taxes from your ex's business that were never disclosed during your divorce proceedings is significant. This goes directly to the "knowledge" requirement - you can't be expected to know about tax liabilities that were actively concealed from you, especially during divorce when full financial disclosure is legally required. For your appeal, focus on documenting the concealment. Gather your divorce paperwork showing his financial affidavit didn't include these tax debts, any correspondence where you asked about taxes or finances, and evidence that you were excluded from business operations. Bank statements showing you had no access to business accounts will also strengthen your case. Don't let this denial discourage you. The initial denial rate is high, but many people succeed on appeal when they can clearly demonstrate they were kept in the dark about the tax issues. You mentioned the $27,000 already taken from your refunds - that's substantial enough to justify getting professional help if you can manage it, but you can also pursue the appeal yourself with careful preparation. Stay strong and don't give up. The system is designed to give you a fair review on appeal.
Hiroshi Nakamura
Anyone have recommendations for legit tax software that has good fraud protection built in? I used to use an accountant but trying to save money this year. Worried about accidentally falling for one of these tax scams the IRS warns about.
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Isabella Costa
I've had good experiences with TaxSlayer. It has built-in error checking and will flag unusual entries that might trigger IRS scrutiny. It's not as expensive as some of the bigger names but still has good security features. Whatever you choose, just make sure it's on the IRS Free File Alliance list so you know it's legitimate!
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Malik Jenkins
I'd actually recommend going against the software route if you're specifically worried about scams. Find a local enrolled agent who charges a reasonable fee. My EA costs $200 for a basic return which isn't much more than the premium versions of tax software once you add state filing, and she catches things software would miss.
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Amara Oluwaseyi
Thanks for sharing this - I had no idea the IRS published an annual "Dirty Dozen" list! Just looked it up and wow, there are so many scams I wouldn't have thought to watch out for. The fake charity scams especially caught my attention since we're always getting donation requests. One thing that really stood out to me was the warning about preparers who won't provide you with a copy of your return or refuse to sign it. That seems like such an obvious red flag now but I probably wouldn't have thought twice about it before reading this thread. For anyone looking, the IRS website has a really helpful section called "How to Choose a Tax Return Preparer" that walks through all the credentials to look for. They recommend starting with the IRS Directory of Federal Tax Return Preparers to find qualified professionals in your area. Definitely bookmarking that for next year!
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