This is such an important point. I'm in New York and was surprised to learn they have an additional tax for S corporations that I wasn't expecting. Always research your specific state requirements before making the switch.

This is brilliant! I hadn't thought about proving where I actually was during that time. I can definitely get my class schedule, campus card swipes, and my work-study timesheets from the university admin office. Did you just compile all this into a packet? And did you send it to the IRS attorney directly or submit it through the Tax Court system?

I compiled everything into a single PDF with a cover page that had my name, tax ID (last 4 digits only), tax year, and case number. I included a simple timeline showing how my documented whereabouts made it impossible for me to have worked at the company in question. I actually did both - I submitted it formally through the Tax Court DAWSON system AND sent a courtesy copy directly to the IRS attorney once they were assigned to my case. The direct approach with the attorney was what moved things along quickly. They appreciate organized evidence that makes their job easier. When the IRS attorney contacts you (they will), be polite and professional but also very clear about your evidence. They're often reasonable people who don't want to waste court resources on cases they're likely to lose.

This happened to my roommate! He had a CP3219A for income from a "consulting company" that had dissolved. Turned out someone had used his SSN for employment. The red flag was that the company was in Nevada, but he'd never even been to Nevada. OP should definitely check if the company was in a location that doesn't make sense for a college student. That strengthens the identity theft argument.

Thanks for mentioning this! Do you know what the income limits are to qualify? My mom's on a tight budget but not sure if she'd be considered low-income enough for assistance.

The income limits vary by state since these are state-administered programs, but generally for the QMB program (most comprehensive one), income needs to be at or below 100% of the Federal Poverty Level, which is about $1,215/month for an individual in 2025. Assets typically need to be under $9,900 for an individual (excluding your primary home and car). There are other programs with higher income limits though. The SLMB program (which pays just the Part B premium) allows income up to 120% FPL, and the QI program allows up to 135% FPL. Definitely contact your state's Medicaid office or local SHIP (State Health Insurance Assistance Program) counselor - they provide free assistance with these applications.

Be careful with those Medicare Advantage plans though. They look great with the $0 premiums but then restrict which doctors you can see. My dad switched to one and then couldn't see his cardiologist anymore because they weren't in network. And the out-of-network costs were insane!

Terrible advice. The IRS computers automatically match ALL W-2s against your filed return regardless of amount. Skip it and you're pretty much guaranteed to get a letter demanding the additional tax plus interest and penalties. The system is fully automated for this kind of matching, it's not about them "choosing" to come after you.

You're probably right, and I wouldn't recommend anyone else do what I did. I got lucky that year, but it's not worth the risk. The IRS matching system doesn't catch everything immediately, so sometimes issues like this can surface years later with added penalties. Better to deal with it properly upfront rather than potentially having a bigger headache down the road.

Great question! The reason tax professionals generally advise reporting it is because the IRS has already received a copy of that W-2. If you don't report it, their automated systems will flag the mismatch. The ideal solution is absolutely to get the company to issue a corrected W-2, but that can take time and companies aren't always responsive. If you can't get it corrected before the filing deadline, you have two options: 1) File Form 4852 (Substitute for W-2) explaining the discrepancy, or 2) Report the income and then file an amended return later if the company issues a correction. Either way, it's important to document your attempts to resolve the issue with the employer. Keep copies of emails, names of people you spoke with, and dates of your communications. This documentation is valuable if the IRS questions the situation later.

That makes sense! So it's more about avoiding the automated flag than actually paying tax on money you never received. I guess $63 wouldn't be much tax anyway, but it's the principle of the thing. Thanks for explaining!

I'm definitely guilty of using my personal Amazon account to buy supplies for my business. Is that a big no-no? Should I be setting up separate accounts for everything?

Using a personal Amazon account isn't ideal, but it's not a disaster if you keep meticulous records. The best practice is to use your business card/account for all business purchases to maintain clear separation. What's more important is having a dedicated business checking account and never commingling funds. Don't deposit business income into your personal account, and don't pay personal expenses directly from your business account. If you use a personal account for a business purchase, reimburse yourself properly with documentation. The goal is maintaining a clear paper trail showing your business operates as a separate entity. Small occasional crossovers with proper documentation won't necessarily void your liability protection, but consistent mixing of finances definitely could.

Good point! Also, some places have something called a "gross receipts tax" that applies to LLCs but not sole props in certain jurisdictions. I got hit with this in my city and wasn't prepared for it.