So what you're saying is it's basically impossible for an app to do this right? That's pretty depressing considering how advanced AI is getting these days. Shouldn't a good AI be able to parse the tax code?

It's not impossible, but it's a massive undertaking that would require substantial resources. Current AI systems are getting better at parsing complex documents like the tax code, but the challenge isn't just understanding the code - it's applying it correctly to individual circumstances. The real complexity comes from how the different parts of the tax code interact with each other. Some deductions phase out based on income levels, some can't be combined with others, some require specific documentation or timing. AI systems are making progress in this area, but we're not yet at the point where they can replace the judgment of a tax professional who understands all these nuances.

Free File is terrible for finding deductions though. It's basically just electronic versions of paper forms. You have to already know which forms to fill out and which deductions you qualify for. It's the opposite of what OP is looking for.

Thanks for mentioning this! Our LLC was formed in 2022, so sounds like we only need to worry about the beneficial owners part? And unfortunately we're nowhere near the exemption thresholds - small family business here.

That's correct. Since your LLC was formed before January 1, 2024, you only need to report the beneficial owners, not the company applicants. And regarding exemptions, yes, if you're a small family business you'll likely need to file. The exemptions mostly benefit larger companies or those already under heavy regulation (like publicly traded companies, banks, credit unions, etc.). Most small businesses will need to file BOI reports for each entity they own or control.

Great point! Do we know if FinCEN is actively cross-checking these reports yet? With millions of filings coming in, I wonder how closely they're reviewing them.

Interesting idea! Do you know if there are specific credit cards that work better for this? I'd definitely consider this option if I could get approved for a decent limit.

Most major banks offer 0% intro APR cards if you have decent credit. Chase Freedom, Citi Simplicity, and Discover It all worked for me in the past. The key is making sure the 0% period is long enough for you to pay it off completely, and calculating whether the processing fee (usually 1.87-1.98% when paying taxes with credit card) is worth it compared to the IRS interest and penalties. For your $7,800 bill, you'd pay about $150 in processing fees, but then have no interest for 12-18 months depending on the card. Just be absolutely sure you can pay it off before the 0% period ends, because those interest rates will jump to 18-29% afterward.

Does anyone know if setting up a payment plan affects your credit score? I'm already dealing with some credit issues and don't want to make things worse.

Do you think TurboTax would catch something like the Qualified Business Income deduction? I've heard that's a big potential tax break for self-employed people, but I'm not sure if I qualify or how to calculate it.

TurboTax absolutely handles the Qualified Business Income deduction automatically. It determines your eligibility based on your business type and income level, then calculates the deduction without you needing to understand the complex rules. It also helps with things like the home office deduction (if applicable) and separates your self-employment tax calculations automatically. The software has gotten really good at guiding you through potential deductions with a simple interview process - it asks questions in plain English rather than tax jargon.

FreeTaxUSA is good but I found it doesn't give as much guidance for self-employment deductions. TurboTax specifically asks about industry-specific deductions you might miss otherwise. Worth the extra money in my experience since it saved me way more than the price difference.

Thanks for the advice about documentation. I've kept all the IRS letters so far, but haven't been great about noting down phone call details. Going to start doing that immediately. Do you think I should deposit the refund checks or hold off until this gets sorted out?

You should definitely deposit the refund checks - they'll expire if you wait too long. Just make sure you keep copies of them first. The IRS has already determined those refunds are rightfully yours based on the returns you filed. If it turns out later that someone was legitimately trying to pay your taxes (like a family member trying to help), you can always work out repayment with them directly. But more likely, it's someone using your information incorrectly, and holding onto the checks won't help resolve that situation.

This is actually a really good point. Most identity theft involves taking money FROM you, not paying your taxes, but it could be part of a more complex scam. Maybe they're building credibility with the IRS using your identity before doing something more sinister?