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I went through this exact process last month. Complete the verification first. Your amendment won't move forward until you do. It took me 20 minutes to verify online. Then my amendment started processing within 48 hours. Don't panic about the timing - this is normal procedure for independent contractors with amended returns.
I'm going through something similar right now! Filed my amendment three weeks ago after realizing I forgot to include some 1099-NEC income from a side gig. The verification request showed up about 10 days later. From what I've learned lurking in this community, it's totally normal - the IRS has ramped up identity verification especially for amended returns involving unreported income. I completed the online verification yesterday (had to answer questions about my previous addresses and loan amounts), and my transcript already shows the verification was accepted. The whole process was actually smoother than I expected once I stopped worrying about it. Just make sure you have your prior year tax info handy when you do the verification - some of the questions reference old returns.
One thing no one's mentioned - report the preparer! If they're filing fraudulent returns, they're doing it to other people too. You can file Form 14157 (Complaint: Tax Return Preparer) with the IRS. If you suspect your refund was inflated through fraud, also file Form 14157-A. The IRS takes preparer fraud seriously because it affects their whole system.
Does reporting actually do anything? I've heard the IRS is so backed up they never investigate these complaints.
They absolutely do investigate preparer fraud, especially when multiple people report the same preparer. The IRS has a dedicated office for this because preparers filing fraudulent returns is a huge problem that costs them billions. They don't have resources to go after every small discrepancy, but preparer fraud is one of their priority areas. I know someone who works for the IRS, and they said these reports definitely get reviewed, but it can take time. The more documentation you provide with your complaint, the more likely they'll act on it quickly.
I'm a seasonal preparer and just want to point out that sometimes legitimate preparers DO find deductions/credits that people miss when they self-prepare. Before assuming fraud, check if: 1) You might have qualified for EIC you didn't know about 2) Your education expenses qualified for American Opportunity Credit 3) You had self-employment deductions you didn't realize were valid 4) Your filing status changed in a beneficial way Not all big refunds are fraud - sometimes it's just expertise! Ask your preparer to walk through each deduction with you.
Thanks for bringing this up! I did get a copy of my return and I'm seeing some business expenses I don't recognize on a Schedule C. The thing is, my 1099-NEC was just for picking up serving shifts at a restaurant - not running my own business. She claimed nearly $12k in "business expenses" against that income. When I asked about it, she just said "that's how you maximize your return, don't worry about it." Seems sketchy.
That's absolutely a red flag! Just because you received a 1099-NEC doesn't mean you're running a business eligible for Schedule C deductions. If you were just picking up serving shifts, you were likely working as an independent contractor, not operating your own business with legitimate business expenses. $12k in business expenses against restaurant serving work is extremely suspicious unless you can document things like uniforms, equipment you purchased, vehicle expenses for deliveries, etc. The fact that your preparer said "don't worry about it" instead of explaining what specific expenses qualified is a huge warning sign. I'd definitely get that tax transcript from the IRS website and compare it to what she gave you. If there are business expenses you can't document or didn't actually incur, you need to file an amended return before the IRS catches it in an audit.
Has anyone dealt with dissolving an S-Corp that had PPP loans or EIDL during covid? We got both and I'm not sure if that affects the dissolution process at all.
I dissolved my S-Corp last year after receiving both PPP and EIDL. For PPP, as long as your loan was forgiven before dissolution, there shouldn't be any issues. You'll just need documentation of the forgiveness. With EIDL it's different - those typically need to be repaid. You'll either need to pay it off before dissolution or reach an agreement with the SBA. In my case, I had to personally assume the EIDL loan as part of the dissolution plan. Took some paperwork but wasn't too complicated.
I went through S-Corp dissolution in Texas last year and want to echo what others have said - your accountant's advice is incorrect on both counts. You can dissolve an S-Corp at any time during the year, not just at year-end. And you absolutely cannot skip quarterly filings just because you're planning to dissolve. Here's what I learned the hard way: even if you're losing money, you may still have employment tax obligations (payroll taxes, unemployment insurance) that continue until the business is officially closed. Missing these can result in penalties that accrue daily. The dissolution process itself took me about 10 weeks from start to finish. I had to file with both the state and IRS, settle all outstanding obligations, and issue final K-1s to shareholders. The final tax return covered the period from January 1 to the dissolution date. One thing that caught me off guard was that even though we had losses, there were still some tax implications when we distributed the remaining assets (mostly office equipment) to shareholders. Make sure you understand the tax consequences before you start the process. My advice would be to get a second opinion from a tax professional who specializes in business dissolution, or use one of the resources others have mentioned to get proper guidance. Don't let this drag on - the sooner you start the proper process, the sooner you'll be done with all the filing requirements.
ask him to explain EXACTLY what deductions or credits he's planning to use that turbotax isn't giving you. if he can't explain it clearly or gets defensive, run away!!!! my cousin's tax guy did this last year, claimed a bunch of fake business expenses and education credits she didnt qualify for. she ended up getting audited and had to pay back $4200 plus penalties!!!
this is so true! i used to work at a tax office (not saying which one lol) and some preparers would just make up business expenses or claim random credits to get bigger refunds and more clients. they knew most people never get audited so they played the odds. totally unethical but happens ALL THE TIME especially with earned income credit.
This sounds like a classic case of a preparer who's going to claim deductions you don't qualify for. The jump from $1,450 to $3,200+ for a straightforward W-2 + side gig situation is a huge red flag. Here's what I'd recommend: Before you give this guy any documents, ask him to write down exactly which deductions or credits he plans to claim that TurboTax missed. If he mentions anything about business expenses for your W-2 job, home office deductions you don't qualify for, or education credits you're not eligible for - walk away immediately. The "knows all the tricks" line is what every shady preparer says. Legitimate tax professionals explain their strategies clearly because they're following actual tax law, not trying to game the system. Remember, even if this guy prepares your return, YOU are the one who signs it and YOU are responsible if the IRS comes after you for improper deductions. The extra $1,750 he's promising could easily turn into thousands in penalties and interest if you get audited. Trust your gut - if it feels too good to be true, it probably is. Stick with reputable software or find a CPA who will explain their work transparently.
Giovanni Moretti
Has anyone used TurboTax to report gambling? I won about $2000 on a slot machine last year (got a W-2G) but probably lost $3000 overall for the year. Not sure how to handle this.
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Fatima Al-Farsi
โขI've used TurboTax for this. You report the $2000 W-2G as income, then if you itemize deductions (Schedule A), you can deduct losses up to the amount of your winnings. BUT you need documentation of those losses like a gambling diary or player's card statements. The catch is that most people are better off taking the standard deduction unless they have a lot of other deductions like mortgage interest or huge medical expenses. So you might end up paying tax on the $2000 win even though you had a net loss overall. It's one of those unfair things about gambling taxes.
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GalacticGuru
I went through something similar last year and can share what I learned. The key thing to understand is that the IRS threshold for slot machine reporting is $1,200 or more from a single spin - not cumulative winnings. Since you never hit that threshold and received no W-2G forms, you have no reporting obligation. Those 800+ transactions are just the casino's way of tracking every individual bet you made. Think of it like your credit card statement showing every small purchase - it's record-keeping, not something you need to report to the IRS. The fact that you had a net loss of $45 with no significant individual wins means this is a non-issue for your taxes. You can safely ignore this on your TurboTax return and focus on your actual tax obligations. The gambling statement is there for your records, but it doesn't create any tax liability when you had no reportable winnings.
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