Thanks for this detailed response! Do you think there's any advantage to having me listed as her representative with a Form 2848 for potential follow-up questions? Or is it better to keep it simple and just have her sign everything directly?

If you anticipate ongoing issues or follow-up questions, then yes, filing Form 2848 would be beneficial as it allows you to speak directly with the IRS on her behalf. This can be especially helpful if they need additional clarification or if something is still unclear after your initial response. However, if the documentation you're providing is straightforward and addresses all their concerns, keeping it simple with just her signature is probably sufficient. The key is ensuring all requested information is provided completely and accurately the first time to avoid delays.

Did the IRS eventually approve your Premium Tax Credit? My wife and I are going through something similar right now and I'm worried they'll deny it completely.

Thanks for this perspective. I ran some rough numbers and looks like the difference would be around $1,200. That's definitely significant enough to make me consider filing an amendment. Do you know if filing an amended return would affect my current refund that's being processed? Like would they hold the original refund until the amendment is processed?

Your original refund should process normally and you'd receive it as expected. The amended return processing happens separately and any additional refund would come later. The IRS treats these as two separate processes, so you won't lose your current expected refund by filing an amendment. If anything, you'll just get the difference as a second refund check/deposit after they process the 1040-X form.

Did you mail in your amended return or file electronically? I heard they finally started allowing electronic amended returns but not sure if that speeds things up.

I just checked a few days ago! The fees have definitely come down. ACI Payments is around 1.98% now for credit cards, and Pay1040 is showing 1.87% for most credit cards. Debit card fees are still flat rate (around $2.50-$3.95 per transaction depending on processor). One thing to watch for - sometimes the different processors have special deals with specific card types. Like Pay1040 has a lower rate for Mastercard than Visa right now.

Thanks for the current info! That's actually a decent drop from last year. With my 2% cashback card, I might actually break even or come out slightly ahead using Pay1040. Going to run the numbers before my next estimated payment. Just to confirm - the 2 payment limit is still per processor, right? So technically I could do 2 payments with Pay1040 and 2 more with ACI if I needed to split up a large amount?

I've heard rumors about this from some colleagues, but nothing official from the IRS yet. They've been modernizing their payment systems gradually, but direct credit card acceptance would require significant infrastructure changes on their end. The main challenge is regulatory - currently, federal agencies can't directly absorb credit card processing fees or pass them on to taxpayers without specific authorization. There was some language in the IRS funding bills about payment modernization, but no explicit timeline for direct credit card acceptance. I'd be surprised if it happened as soon as 2025, but it's definitely on their roadmap for future improvements. The current third-party processor system is clunky for everyone involved.

Thanks for the insight! That makes sense about the regulatory challenges. Seems like everything with the IRS moves at a glacial pace. Guess I'll have to keep dealing with these processors and their fees for a while longer.

How hard was it to get approved for the Offer in Compromise? I've heard they reject most applications. Did you need to hire someone to help with that process?

It's definitely not automatic, but it's not as impossible as some people claim. The key is proving that you genuinely cannot pay the full amount without causing significant financial hardship. You need to document all your income, expenses, assets, and liabilities very thoroughly. I did it myself using the IRS's pre-qualifier tool first to see if I might qualify. The paperwork is extensive - Form 656 and Form 433-A mainly - and you need to include a lot of documentation. It took about 7 months from submission to acceptance. They did counter my initial offer with a slightly higher amount, which I accepted. You don't necessarily need to hire someone, but you do need to be very organized and thorough with your financial documentation.

But doesn't filing your own return reset that 10-year clock? I heard that submitting anything to the IRS about old tax years can restart the collection period.

That's a really good suggestion about the state licensing database! I just checked my state's childcare portal and found our daycare, but unfortunately it only shows their state license number, not their federal EIN. I pay them by check so no digital payment records either. I think I'm going to try the "Applied For" option that the first commenter suggested, and then follow up with the daycare on Monday to get the correct number. Thanks everyone for all the suggestions!

This! Parent networks are amazing for this stuff. Also, sometimes daycares have their EIN on their website in the FAQs or enrollment sections. Worth checking if they have a site.