Thanks for this info. Did you have to fill out any specific forms for the penalty abatement? And how long did it take to resolve after you contacted them?

In my situation, the IRS representative handled the penalty abatement over the phone once I explained the situation and provided evidence my business didn't exist during the tax period in question. I didn't have to fill out any special forms since it was clearly their error. It took about 6 weeks from my phone call until I received the official letter confirming the notice was withdrawn. The representative told me it would take 4-8 weeks, so that was accurate. Make sure you keep all documentation related to this issue, including notes about any calls (date, time, representative's ID number if they provide one).

Not everything is identity theft! The IRS makes mistakes all the time. Their systems are from the stone age and they're understaffed. I got a CP2000 for $12k last year because they couldn't match my Schedule C to my 1099s correctly. Took 3 months to sort out.

I hadn't even considered identity theft - that's a scary thought. I just checked my credit reports and don't see anything suspicious there, thankfully. But I'll definitely mention this possibility when I speak with the IRS. If someone created a business using my information back in 2020, I need to know about it.

Wait, student loans count as support provided by the student?? I had no idea. What about if the parent is a cosigner on the loan? And do parent PLUS loans count as support from the parent?

Student loans are indeed considered support provided by the student even if a parent cosigns, because the student is ultimately responsible for repaying the loan. This is a common misunderstanding that causes problems during audits. For Parent PLUS loans, those DO count as support provided by the parent because the parent is legally responsible for repaying them, not the student. This distinction is important when calculating the total support. Another thing people often miss is that qualified tuition paid directly by the parent to the educational institution always counts as support from the parent.

Yes, you should include the full tuition amount in the total support calculation. The scholarship portion counts as support provided by a third party (not by either you or your son). So when determining if you provided more than 50% of support, the formula would be: (Amount you paid) ÷ (Total support including full tuition) > 50% The "total support" denominator includes everything: full tuition (including scholarship portion), housing, food, medical, etc. from ALL sources.

I'm sure we don't qualify for FMLA - we're truly a small independent business with just 12 employees total. I did check into my state's laws and unfortunately we're in a state with minimal protections beyond the federal requirements. I'm going to look into the temporary disability option that a few people mentioned. I had no idea that might be available to me! And I'm definitely not going to file for unemployment fraudulently. After reading everyone's comments, I can see that's a terrible idea that could come back to haunt both me and my employer.

This is so true. My sister works for our state's unemployment department and they absolutely compare birth records with unemployment claims. They also check social media sometimes. Someone at her office caught a claimant posting about their new baby on Facebook during the exact period they claimed to be "laid off" and actively seeking work.

Wait what? 100% of meals can be deducted? I thought that was only for actual businesses, not independent contractors? And what counts as "far from usual work area"? Like is that a specific mile range?

Independent contractors ARE businesses - that's the whole point of being a contractor instead of an employee. As long as your wife files a Schedule C, she's operating a business and qualifies for these deductions. For the "far from usual work area" definition, there's no specific mile requirement in the tax code, but the general rule is that it needs to be far enough that it wouldn't be reasonable to return home for meals. Most tax professionals consider anything requiring an overnight stay or sites more than 50 miles from your home base to clearly qualify, but even shorter distances can work if there's a business necessity to remain on-site.

I'm not a tax pro but I've been a contractor for 6 years. The drive from home to first job site and last job site to home are considered personal commuting miles and NOT deductible. Only the miles between job sites during the day count as business miles. EXCEPTION: If you have a qualifying home office that serves as your principal place of business, then drives from home to job sites CAN be deductible business miles.

Thanks for this info! I'll definitely try emailing them. Do you remember roughly how long it took for them to respond to your email? I'm trying to get my taxes done in the next couple weeks.

They got back to me in about 3 business days, but this was in early February last year. It might take longer now since we're in peak tax season. I'd recommend sending the email request ASAP and being very specific in your subject line (something like "Request for 2024 1099-INT Form"). When they did respond, the actual document access was pretty quick - they sent a secure link that was valid for 48 hours where I could download the form.

I noticed that too! I think it's because they calculate based on the daily balance at a specific time of day, so if you move money in or out frequently, their calculations can seem weird. I started taking screenshots of my daily interest deposits just to be safe.

That makes sense about the timing! Thanks for explaining. I've been moving money between pods pretty regularly which probably causes the discrepancies. Screenshot idea is smart - gonna start doing that too.