IRS
CommunityGovernment Services
Can't reach IRS? Claimyr calls for you, so you don't have to wait on hold.
Claimyr is a pay-as-you-go service. We do not charge a recurring subscription.
Using Claimyr will:
- Connect you to a human agent at the IRS
- Skip the long phone menu
- Call the correct department
- Redial until on hold
- Forward a call to your phone with reduced hold time
- Give you free callbacks if the IRS drops your call
Ask the community...
- DO post questions about your issues.
- DO answer questions and support each other.
- DO post tips & tricks to help folks.
- DO NOT post call problems here - there is a support tab at the top for that :)
What's the best path to owning a tax office right now?
So I've been working as a tax preparer for a few years, mostly seasonal work at one of those big chain tax places (not saying which one lol). I'm thinking about branching out and eventually owning my own tax office. I have an accounting degree and some decent experience, but I'm not a CPA or EA yet. I'm trying to figure out what would be the smartest path to go down. Should I: 1) Try to buy an existing practice from someone retiring 2) Start completely from scratch and build my own client base 3) Look into franchising with a known tax prep company 4) Get more credentials first like my CPA or EA before doing anything Money is definitely a factor - I don't have a ton saved up, maybe $30k that I could invest in this. I'm in a mid-sized city with decent growth. Anyone done this before or have advice on the smartest approach? The tax software costs alone seem pretty steep when you're just starting out.
Join the conversation
How to handle Depreciation Deduction/Recapture on Furniture for my foreign rental property?
I inherited an apartment in Spain that used to be my vacation home, but I've been renting it out furnished for the past 3 years. Just found out I need to add depreciable assets on my Schedule E for US taxes (I'm a US tax resident). Apparently, the IRS requires this since there'll be depreciation recapture when I eventually sell, whether I claim the depreciation or not over the next couple decades. The property part makes sense, but I'm confused about how to handle the furniture. My plan is to continue renting furnished for many years until the furniture gradually gets worn out or damaged, then I'll replace pieces one by one. Eventually, it might become partially furnished or even unfurnished as things break down. My question is: If I start claiming depreciation on all these furniture items, and they're all eventually thrown out before I sell the property, how would depreciation recapture work for just the furniture? I'm thinking the furniture will be long gone by the time I sell the actual property. Would I still face recapture on items that were fully depreciated and disposed of years earlier? Also, should I itemize each furniture piece separately or group them together? The couch was around $2,400, dining table $1,800, beds probably $3,500 total, plus various smaller items. Trying to understand how this all works before I file!
Join the conversation
Has anyone used TurboTax to handle furniture depreciation for rental properties? I'm trying to figure out if the software can track individual asset depreciation schedules or if I need something more specialized.
TurboTax does have a rental property section where you can add depreciable assets, but it's pretty basic. It doesn't handle tracking the disposal of individual furniture items well over multiple years. I switched to TaxAct which has slightly better rental property features, but still had to maintain a separate spreadsheet for tracking my furniture items.
Thanks for that info! Sounds like I might need to keep a separate tracking system regardless of which tax software I use. I'm guessing none of the consumer tax programs really handle the complexity of multiple furniture items with different depreciation schedules and disposal dates.
One thing nobody mentioned yet - if your foreign country charges any kind of property tax on the furniture itself (some countries do this separately from real estate), you might be able to claim the Foreign Tax Credit for those taxes. It's another form to file but could offset some of your US tax liability. Also, make sure you're converting all your furniture costs and depreciation calculations to USD based on the exchange rate when you purchased the items, not current rates. This tripped me up for years with my rental in Thailand!
How to file multiple 1099-B forms from Robinhood for crypto and stocks?
Hey everyone, I'm in a bit of a jam trying to sort out some tax stuff from previous years. I've got 2 separate 1099-B forms from Robinhood - one for my cryptocurrency trades and another for my stock market investments. I'm pretty confused about how to handle them properly. Do I need to submit two completely separate 1099-B forms when I file these back taxes, or should I just combine all the totals onto a single form? I've never had to deal with multiple 1099-Bs before and I really don't want to mess this up and end up owing even more to the IRS. Any advice would be super appreciated!
Join the conversation
Don't forget that Robinhood's 1099-Bs are notorious for having incorrect cost basis info! I got audited in 2023 because of this. Double-check all your transactions, especially for crypto if you transferred any in from other wallets. Sometimes they show $0 basis when you actually paid something for the coins elsewhere.
Is there an easy way to fix this? I transferred some ETH from Coinbase to Robinhood in 2022 and I'm worried my 1099 is showing zero cost basis for those.
You'll need to manually adjust the cost basis on Form 8949. There's a column specifically for corrections. Just enter the correct amount you originally paid and include a brief explanation code (usually "B" for basis adjustment). Keep all your receipts and transaction records though! If you get audited, you'll need to prove your actual cost. For your ETH transfers, you'll need the original purchase price from Coinbase. The annoying part is Robinhood won't know that info, so your 1099 will likely show $0 basis. That's why many crypto traders end up significantly overpaying on taxes if they don't make these adjustments.
Has anyone had issues with Robinhood's 1099-B for wash sales spanning across both crypto and stocks? I know wash sale rules technically dont apply to crypto but Robinhood seems to be applying them anyway on my forms.
Robinhood is just following their internal reporting system. You're right that wash sale rules don't technically apply to crypto (it's treated as property not a security). When I did my taxes I had to manually adjust this on my forms and include an explanation.
Seeking affordable tax preparation software recommendations for my new side business
Hey everyone! I've been working in the tax industry for about a year now and I'm planning to start my own small tax preparation business on the side. Nothing too fancy - just helping people with their 1040s. I'm trying to figure out what software would be best for a beginner tax preparer without breaking the bank. I've been looking at Tax Act which seems to run around $1350 for a professional package. That's currently at the top of my list, but I wanted to see if anyone has other recommendations or experiences to share before I commit. Any advice on budget-friendly tax preparation software for someone just starting out? What are you using? Any pros/cons I should be aware of? Thanks in advance for any help!
Join the conversation
I'm surprised nobody has mentioned ATX. It's what I use for my small tax business, and it's much more affordable than TaxAct. Think it was around $800 for the basic package that covers all individual returns including Schedule C. The interface isn't super modern but it's functional and their support is decent. They also have a pay-per-return option if you're just starting out.
Does ATX include all the forms I'd need for basic 1040s with some small business clients? And do they offer any kind of training or is it mostly learn-as-you-go?
Yes, the basic package includes everything you'll need for 1040s including all schedules (A, B, C, D, E) and common small business forms. They actually have pretty good built-in help content - when you're on a specific form, you can access relevant IRS instructions and explanations right there. They do offer some training webinars too, usually around the beginning of tax season. The learning curve isn't too steep if you already have some tax knowledge. Their customer service can help with software questions, but they won't give tax advice (no software company really does that for liability reasons).
One thing to consider - whatever software you choose, factor in the cost of tax research resources too! I learned this the hard way. You'll inevitably get client situations where you need to look up regulations or rulings. Tax Act Pro is decent for the price, but I ended up subscribing to TheTaxBook online ($90/year) for research. Made a huge difference in my confidence level with more complex returns.
Absolutely agree about need for research tools! I use both TheTaxBook and sometimes CCH answers when things get complex. Do you think the online version of TheTaxBook is better than the physical books? I'm old school and like having the paper versions.
Forgot to report client payment on taxes, now audited - options when 1099 arrived late?
So I'm in a bit of a mess and need some advice. I received around $13k from a client in January 2019, but I honestly forgot about it when filing my taxes (couldn't remember if it was 2018 or 2019 income - yeah, I know, my bad). The client didn't send me a 1099 until late March 2020, well after I had already filed my tax return for 2019. Of course, the IRS noticed the discrepancy and I just got a letter saying I owe about $4700 in taxes. I'm expecting to get at least that much back on this year's return, but the IRS letter says the $4700 is due by February 15th. I can pay part of it and set up a payment plan, then pay the rest when I get my refund. What I'm wondering is: do I have any options here since the client sent the 1099 after the February 1st deadline? I thought they were legally required to provide these forms by a certain date. Can I request an extension or somehow apply this to my current year's taxes instead? To be clear - I'm not trying to avoid paying taxes I legitimately owe. Just looking for advice on how to handle this situation given the late 1099.
Join the conversation
One thing nobody mentioned is that you should absolutely file an amended return (Form 1040-X) for that tax year ASAP. Even though you've been audited and received a notice, filing the amended return yourself shows good faith and might help with penalty abatement. Make sure to include a written statement explaining the situation with the late 1099. Also check if you had any additional business expenses related to earning that income - they could offset some of what you owe.
Wouldn't filing an amended return be redundant at this point? The IRS already knows about the income and has calculated what I owe. Would there be any benefit to going through that process now?
Filing an amended return is still beneficial even after receiving an audit notice. When you file your own amendment, you have the opportunity to present the complete picture of your tax situation - including any deductions or credits related to that income that the IRS might not have considered. The IRS calculation in the notice only adds the income they discovered and recalculates your tax. They don't automatically apply any potential deductions you might be entitled to from that business relationship. By filing Form 1040-X, you're taking control of the narrative rather than just accepting their adjustment.
You might want to file Form 843 (Claim for Refund and Request for Abatement) to request elimination of the penalties. I had success with this after a similar situation. The IRS can waive penalties for "reasonable cause" - and while the late 1099 isn't a get-out-of-jail-free card, it does support your case that you were missing information.
I second this. I had penalties waived using Form 843 when I had a similar situation with a late 1099-K from PayPal. Make sure to include dates, copies of when you received the 1099, and a clear explanation. Be super polite and straightforward in your letter!
Omar Mahmoud
Whatever path you choose, make sure you have proper E&O (Errors and Omissions) insurance before preparing a single return. One bad mistake on a high-value client can bankrupt you without it. Also, think about your client focus. Do you want to do mostly 1040s? Or focus on small businesses? Each requires different expertise and software. I found focusing on small contractors and self-employed folks to be my sweet spot - they need more help than simple W-2 filers and are willing to pay for expertise.
0 coins
Chloe Harris
Any recommendations for good E&O insurance providers specifically for tax preparers? My quote from [insurance company] seemed crazy high.
0 coins
Omar Mahmoud
Check out Insureon or NAEA's member insurance program if you're an Enrolled Agent. I've found the NAEA rates to be quite reasonable. Also look at Landy Insurance Group - they specialize in coverage for tax professionals and understand the specific risks. Make sure your policy covers representation during audits, not just errors. The difference in premiums isn't huge but the protection is significant. My premium is around $1,200/year for $1M in coverage, which is well worth the peace of mind.
0 coins
Diego Vargas
Anyone considering buying or starting a tax practice needs to factor in the massive changes coming with technology. AI and automation are already changing the industry. The basic 1040 market is getting squeezed by free/cheap DIY options. The real value is in advisory services, tax planning, and helping with complex situations. If I were starting today, I'd focus on becoming an expert in specific niches (crypto taxes, real estate investors, expat taxes, etc) rather than trying to compete on volume of simple returns.
0 coins
Oliver Weber
AuthorThat's a really good point about specializing. I've been wondering if the traditional tax office model will even exist in 10 years with all the AI stuff happening. Do you think it's still worth buying an existing practice with all these changes coming?
0 coins