Do you know what the minimum monthly payment the IRS will accept is? I probably owe around $5000 across three years and there's no way I can pay that all at once.

The minimum payment depends on how much you owe, but generally the IRS will accept payments that would clear the debt within 72 months (6 years). For $5000, that would be around $70-100 per month depending on interest and penalties. If you can't afford what they initially propose, you can request a lower payment based on your financial situation. They have a form called 433-F that lets you show your income and expenses to justify a lower payment amount. The key is to request the payment plan upfront rather than waiting for them to come after you.

People rarely go to jail just for failing to file, especially if you're voluntarily coming forward to fix the situation. The IRS generally reserves criminal prosecution for cases involving fraud, tax evasion, or deliberate concealment. Coming forward voluntarily to file back taxes is actually viewed favorably by the IRS. They're much more likely to work with you on payment plans and might even be able to reduce some penalties if you show good faith by filing now.

That's good to hear. I've been stressing out about my own situation with missed filings. Gonna try to get caught up too.

Wait really? I filed my 2021 taxes late last year and I don't think that unemployment exclusion was applied. Can I still amend my return to get that money back?

You can definitely still amend your 2021 return to claim the unemployment compensation exclusion if you qualify! You'll need to file Form 1040-X (Amended Return). You generally have 3 years from the original due date to file an amendment, so for 2021 taxes, you have until April 15, 2025. Keep in mind that the exclusion only applies if your modified AGI was less than $150,000. If you qualify, it's absolutely worth doing since it could mean a significant refund depending on how much unemployment you received in 2021.

Any idea how much a tax professional typically charges for a prior year return? I need to file 2021 too but I'm worried about the cost.

Did you need to bring in any specific documents for the amendment besides the missing 1099-INT forms? And how long did it take for them to process the amendment for you?

You'll need to bring your copy of the original tax return they prepared, the new 1099-INT forms, and your ID. It's helpful to also bring the receipt from your original tax preparation service. The actual appointment only took about 20 minutes since it was a simple change. As for processing time, H&R Block prepared the amendment same-day, but the IRS took about 14 weeks to process it once submitted. That's pretty standard for amendments - they take much longer than regular returns. Electronic amendments are faster (around 8-12 weeks) compared to paper ones (16+ weeks sometimes).

I tried using the free fillable forms for an amendment last year and honestly it was a nightmare. The 1040X seems simple but getting all the calculations right and making sure you're filling in the right columns is confusing. You have to manually input the original amounts, the changes, and the corrected amounts for every line that's affected. I ended up making a mistake on mine that caused a 3-month delay in processing. Not worth the headache for saving $40 on software in my opinion.

This is potentially dangerous advice without more context. Real estate professional status is one of the most audited areas by the IRS. Unless the original poster actually works in real estate as their primary profession, they almost certainly won't qualify. Having one rental property with some repair issues isn't enough to meet the substantial requirements for this status.

You're right that it's heavily scrutinized, and I should have been clearer. Real estate professional status typically requires working in real estate full-time and having multiple properties. For someone with just one condo that had issues, it's unlikely they'd qualify. A more realistic approach for most people is to ensure all legitimate expenses are captured on Schedule E, properly document everything, and then carry forward losses to future tax years when they can be used against rental income or when the property is sold.

That's interesting - I hadn't considered the casualty loss angle. The water damage was definitely sudden and unexpected (a pipe burst in the wall). Do you know how this would work with the insurance payments I received? The insurance covered about 85% of the damage, but I still had out-of-pocket costs.

I used TurboTax but I paid for it with my credit card during filing, so the fees definitely weren't taken from the refund. The weird thing is that the IRS "Where's My Refund" tool shows the full amount, but what's pending in my bank is less. That's what has me so confused.

In that case, it's almost certainly an adjustment or offset of some kind. One thing to check - did you receive all of your stimulus payments during COVID? Some people who claimed the Recovery Rebate Credit had it adjusted by the IRS if their records showed the stimulus was already paid. Also worth checking if your bank might have put a temporary hold on part of the deposit, though that's less common.

This happened to me too! I had a partial deposit and freaked out, then 4 days later the rest showed up. The IRS never explained why they split it. Something about fraud prevention maybe?