5 I messed up my backdoor Roth reporting last year and had to file an amended return. Make sure you keep track of your "basis" in the Traditional IRA across multiple years if you do this annually. Also, TurboTax really struggled with this - had to manually override some calculations.

Great question about backdoor Roth reporting! I went through this exact same confusion last year. You're absolutely right that you need Form 8606 - that's the key form you'll fill out yourself to report the non-deductible Traditional IRA contribution. Fidelity won't send you a separate form for that initial contribution, which is why you only got the 1099-R. Here's what I learned: Form 8606 Part I is where you'll report your $6,500 non-deductible contribution, and Part II handles the conversion to Roth. Since you converted right away with no earnings, the taxable portion should be zero. Just make sure to keep good records of your basis for future years if you plan to do this annually. One tip - double-check that you don't have any other Traditional, SEP, or SIMPLE IRA balances anywhere else, as those would affect the pro-rata calculation and make part of your conversion taxable. The IRS looks at all your IRA accounts combined when calculating the taxable portion.

As someone who's been through this exact transition, I'd recommend reaching out to firms NOW, even before starting any coursework. You don't need to be an expert to have these conversations - in fact, being upfront about researching your options shows initiative. I called about 8-10 local firms and simply said "I'm an experienced accountant looking to expand into tax preparation and I'm researching education options. Could I ask what software you use and what you look for in part-time tax preparers?" Most were happy to chat for 5-10 minutes. What I discovered completely changed my approach. Three firms in my area use UltraTax, two use Lacerte, one uses Drake, and only one uses ProSeries. If I had gone straight into Intuit Academy without this research, I would have been trained on software that only one local firm actually uses! The conversations also revealed that most firms prefer to train business tax skills in-house but want people who already know their software. This insight led me to focus on software-specific training first, then supplement with business tax theory later. One firm even offered to let me shadow during their next busy season if I completed training on UltraTax beforehand. That single conversation opened a door that wouldn't have existed if I'd just blindly picked a program. Do the market research first - it's absolutely worth the time investment!

This entire thread has been incredibly enlightening! As someone who's been wrestling with this exact decision for months, I'm realizing I've been approaching this completely backwards. I was focused on comparing course content and pricing, but Charlee's market research approach is genius. I just spent the morning calling five local firms, and what I learned was eye-opening. Four out of five use Thomson Reuters software (GoSystem or UltraTax), and none of them use Intuit's business tax software! One firm told me they'd actually prefer someone with strong Excel skills and basic tax knowledge over someone trained on the wrong software platform. Another mentioned they have a backlog of simple 1120S returns and would consider part-time help if I could demonstrate competency with their software. This has completely shifted my strategy. Instead of enrolling in either Intuit Academy or H&R Block courses, I'm now looking into Thomson Reuters training programs. It's amazing how 30 minutes of phone calls can save months of studying the wrong material. Thanks especially to Nina for starting this discussion and to everyone who shared their real-world experiences. This is exactly the kind of practical advice you can't get from course websites or marketing materials!

For anyone dealing with this situation, I'd recommend downloading IRS Publication 1494 "The IRS Collection Process" and keeping it handy. It's free on the IRS website and explains exactly how different types of levies work. Section 3 specifically covers Notice of Levy (Form 668-A) and confirms what others have said about it being a one-time seizure of property you have on hand. What really helped me when I dealt with this was creating a timeline showing: (1) when I received the notice, (2) exactly what funds I had for that vendor at that moment, and (3) when I sent the payment. This documentation proved invaluable when our auditor reviewed our files later. One thing to watch out for: make sure you're only withholding funds that actually belong to the taxpayer named in the levy. If you have payments due to a different legal entity (like their LLC vs. personal name), those might not be subject to the levy depending on how it's written.

Just wanted to add something that helped me when I dealt with a similar Notice of Levy situation - make sure you understand the "property in possession" concept clearly. The IRS defines this as money or property that you currently hold that belongs to the taxpayer at the time you receive the levy notice. In my case, we had already cut a check to the vendor but hadn't mailed it yet when we received the 668-A. Our attorney advised that since the check was still in our possession, those funds were subject to the levy. But payments we made after sending in the levy amount were not subject to withholding. Also, keep in mind that interest and penalties can continue to accrue on the taxpayer's debt even after you send in what you withheld. This doesn't affect your obligations, but it's why the vendor should contact the IRS directly to resolve their underlying tax issue rather than just waiting for the levy to be satisfied. One last tip: if you're ever unsure about compliance, err on the side of caution and document everything. The IRS is much more forgiving of businesses that clearly attempted to comply in good faith, even if they made minor procedural errors, than those who ignored the levy entirely.

Has anyone used an installment sale to spread out the tax hit? I'm considering selling my small manufacturing business next year and wondered if that approach actually works well in practice.

@Yuki Ito - I went through a similar asset sale situation with my electrical contracting business two years ago. One thing that really helped me was getting clarity on the depreciation recapture rules early in the process. Since you mentioned your equipment is mostly depreciated, that's going to be a significant factor. For the $78k in goodwill, that should qualify for capital gains treatment, which is great news for your tax situation. But here's something I learned the hard way - make sure you're accounting for any Section 179 deductions you took on equipment over the years. Those can complicate the recapture calculations. Regarding spreading the tax burden, you might want to explore an installment sale structure if the buyer is open to it. This allows you to recognize the gain over multiple years rather than taking the full hit in the year of sale. However, be aware that depreciation recapture generally has to be recognized in the first year regardless. My advice: don't commit to any purchase price allocation until you've run the numbers on different scenarios. The difference between a smart allocation and a poor one can easily be $15-20k in your situation. Take the extra week to get proper advice - the buyer will understand given the complexity involved.

Just went through ID.me verification two days ago and wanted to share my experience! As someone who's been lurking in this community for a while but never posted, this thread convinced me it was time to contribute. **What I had prepared:** - The IRS letter with verification code (kept it right next to my computer) - Current driver's license - Social Security number on a piece of paper - My tablet with full battery (found the larger screen easier than my phone) - Set up at my home office desk with good overhead lighting **My actual experience:** Total time was about 29 minutes, which included me double-checking everything multiple times! The automated system worked smoothly - no video chat required. The facial recognition worked perfectly on the first try, probably because I followed everyone's advice here about proper lighting and distance. **What really stood out:** - The process felt much more secure and professional than I expected - Clear progress indicators showed exactly where I was in the verification - Error messages were actually helpful when I initially uploaded a slightly blurry photo - The confirmation email arrived within minutes of completion Giovanni, reading through your original question and everyone's responses has been so helpful! Your cautious approach is exactly right. After going through it myself, I can say this community's advice was spot-on - being prepared and taking your time makes all the difference. The horror stories really are the exception, not the rule. You'll do great! 👍 Thanks to everyone who shared their experiences here - it made my verification process so much less stressful knowing what to expect!

Just completed my ID.me verification this week and wanted to add my experience to this fantastic thread! As a newcomer who was initially intimidated by the whole process, reading everyone's detailed experiences here made all the difference. **What I gathered beforehand:** - The IRS verification letter with code (absolutely essential!) - Current driver's license - Social Security number written down clearly - My smartphone with full charge - Set up at my kitchen counter with excellent natural lighting from a large window **My actual experience:** The entire process took about 26 minutes from start to finish. Like so many others here, the automated system handled everything perfectly - no video chat needed! The facial recognition worked on the first attempt, thanks to following all the lighting and distance advice shared in this thread. **Key takeaways:** - The interface was surprisingly user-friendly and intuitive - Email confirmations at each step provided great reassurance - The system gives helpful feedback if photos need to be retaken - Doing it mid-morning on a weekday felt like the right timing Giovanni, your instinct to prepare thoroughly before starting is absolutely perfect! After reading this entire discussion and experiencing it myself, I can confidently say the preparation advice everyone shared here is gold. The horror stories really are outliers - when you have everything ready and approach it calmly, it's actually quite straightforward. This community's willingness to share practical, real-world experiences has been incredible. Thanks to everyone who took the time to help fellow members feel more confident about this process! 😊