That spreadsheet idea is really helpful! I haven't been tracking the credits that carefully. Do you think I need to go back and try to reconstruct this information for all of 2024, or is it enough to start tracking properly from now on?

You should definitely try to reconstruct the information for all of 2024 as best you can. The IRS expects you to report all income for the tax year, so you'll need to account for all the credits you received throughout the year. Start by checking any statements or documentation the company provides about your credit balance or transactions. Look through emails or your account on their system for records of sales and credits earned. If you have purchase records showing what you bought with the credits, compile those too. It's better to have incomplete records that you've reconstructed after the fact than no records at all.

This is an important point! The tax treatment can vary depending on the specific details of how these credits work and what your business relationship is with the company. If you're purchasing their products for resale, the discount approach might be valid. However, if you're simply providing a service (like sales or marketing) and receiving these credits as compensation, they're more likely to be treated as income. The key factor is whether these credits are fundamentally a payment for your services or a discount on purchases you would make anyway as part of your business.

4 Do you know if there's an easy way to get copies of old returns if you didn't save them? I can't find my 2022 return anywhere and I'm worried I'll need it.

21 You can request tax transcripts directly from the IRS website through their "Get Transcript" service. They offer several types, but what you'll want is the "Tax Return Transcript" which shows most of the line items from your original tax return, including your AGI. You can get these online immediately if you create an account on the IRS website, or request them by mail which takes about 5-10 business days. The online method requires more verification steps but gives you instant access. It's totally free either way and is the official solution for when you don't have copies of your previous returns.

6 I've used TaxAct for the past 3 years including one late filing. It handles penalties automatically and was way cheaper than TurboTax. The interface isn't as pretty but it gets the job done and has all the same features that matter.

So what about if there's a real business conference and I bring my kid who works for my business? Is any part of that deductible or is it all considered personal?

If there's a legitimate business conference and your child who legitimately works for your business has a valid business reason to attend, then their expenses related to the conference itself would be deductible as a business expense. This includes their registration, their portion of the hotel room during the conference dates, and their meals while attending business activities. However, if you extend the trip for sightseeing or vacation activities, those additional days would not be deductible. And any activities that are clearly personal in nature (like visiting tourist attractions or entertainment) wouldn't be deductible either, even during the business portion of the trip. The IRS looks at the primary purpose of each expense.

Your kids would only have to file taxes if their income exceeds the standard deduction (which is $13,850 for 2025). So if they make less than that, they typically don't have to file a federal return. But you still need to keep proper payroll records, issue them a W-2, and follow all employment laws.

Thanks for the warning! Did you have to do anything special to get it fixed when the payments stopped? Or just call the IRS? I'm definitely going to mark my calendar to check after each payment date now.

I had to call the IRS, which was a complete nightmare - took three days of trying before I got through. They claimed my bank had rejected the withdrawal (which wasn't true - my bank had no record of any attempt). They had to set up the whole payment plan again, and I had to pay an additional fee for the "reinstatement" even though it was their error. The most frustrating part was they had my current contact info but never tried to notify me until after I had technically defaulted. My advice is to check your bank account AND your IRS account online every month, and if you see any issues, deal with them immediately before they snowball.

Setting up an installment agreement before the filing deadline counts as meeting your obligation. The agreement itself is considered timely, even if the first payment comes later. There will still be some interest and smaller penalties, but you avoid the big failure-to-file penalty. It's like telling the IRS "I acknowledge I owe this and commit to paying on this schedule" rather than ignoring the debt. As long as you keep making the agreed payments, you're in compliance.

Thank you for explaining the tax implications. I hadn't even thought about how this might trigger an IRS review. Do you know if there are any legal options for small businesses to help employees with maternity leave? My employer seems to think unemployment is their only option.

Small businesses actually have several legal options to support employees during maternity leave. They can offer paid time off from their own funds (which is tax-deductible as a business expense), set up short-term disability insurance (which is relatively inexpensive), or establish a temporary flexible/remote work arrangement. Some states also have paid family leave programs that small businesses can participate in, where both employers and employees contribute small amounts throughout the year. And depending on how your employer structures your compensation, you might qualify for state disability benefits in some locations, which is completely separate from unemployment.

Is there any kind of whistleblower protection if someone reports their employer for suggesting this kind of fraud? asking for a friend...