I never thought about the fees for the money orders! That would be wild to pay double just to make a point. Do tax attorneys actually have any success fighting the IRS? Everyone I've talked to makes them sound like an unstoppable force.

Tax attorneys absolutely can be successful against the IRS. The key is finding one who specializes specifically in tax controversy or tax resolution, not just a general tax preparer. The IRS makes mistakes all the time, and they have various programs like Offers in Compromise that can reduce legitimate tax debts. I've seen clients get tax bills reduced by 50-70% with the right representation. The IRS is powerful but not infallible, and they have internal procedures for resolving disputes. The biggest mistake people make is trying to handle complex tax issues themselves without understanding the technical aspects of tax law.

This is the real answer! Audit reconsideration saved me when I had a similar issue. The key is having all your documentation extremely organized and being very specific about what errors were made in the original assessment.

1 Ahh that might be it! I think I might have selected Head of Household by accident. And I actually did take a couple classes at community college last fall that cost about $2,000 total. Would that qualify for that education credit you mentioned? I didn't even know that was a thing.

3 The American Opportunity Credit would absolutely apply to your community college expenses. It gives you a credit of 100% of the first $2,000 in qualified education expenses, which would give you a $2,000 credit right there. That along with the filing status confusion could explain a big chunk of that $5,000 estimate. Make sure you have Form 1098-T from your college which shows your tuition payments. When you file your actual return, use that form to claim the education credit correctly. This is definitely something worth looking into!

19 I've used both. For multiple W-2s they're pretty similar, but I found TurboTax's interface a bit more intuitive. Both will double-check that you've entered everything correctly. TurboTax has this W-2 import feature that can sometimes pull your info directly which saves time and reduces errors. H&R Block is usually a bit cheaper though. If price is important, go with H&R Block. If ease of use matters more, TurboTax might be better. Both will get you an accurate refund if you enter your info correctly.

That's an interesting approach. Did you just search for "tax attorney consultation" or how did you find someone willing to do this?

I actually found her through my state's bar association website. They have a referral service where you can search for attorneys by specialty and many list whether they offer consultation services. I called a few and specifically asked about a one-time paid consultation. A good approach is to be very clear upfront about what you want - I literally said "I'm looking for a one-time paid consultation to get answers to specific tax questions as I'll be handling my own filing." Some weren't interested, but others were perfectly happy with this arrangement.

Can confirm this! I volunteered with VITA for 3 years and we regularly had people come in just to ask questions about their tax situation. As long as it's not during the busiest parts of tax season, most volunteers are happy to help even if you're not having them prepare your return.

Yes, this will definitely be a problem! The bankruptcy trustee requires your most recent tax return and will likely require you to file any unfiled returns before proceeding with your case. In my bankruptcy last year, I had to quickly file my missing return before we could move forward.

Thanks for letting me know! I'll make sure to get my 2023 return filed before I start the bankruptcy process. I was hoping to avoid it but sounds like that's not an option.

That's really helpful - I actually might be getting a small bonus in a few months but didn't think about how that would affect things. I'll definitely bring this up with my attorney. Did your cousin's entire bonus get taken or just a portion?

My cousin had to surrender the entire bonus because his Chapter 7 case was still open when he received it. The timing was particularly unfortunate - his discharge came just two weeks after the bonus was paid. Had he received it after the discharge, he would have been able to keep it. In Chapter 7, any assets or income you receive before your case closes can be claimed by the trustee. Chapter 13 works differently since you're on a payment plan, but unexpected income can sometimes lead to a modification of your plan payments. Definitely discuss any potential future income with your attorney to plan accordingly.

Thanks for mentioning the code M thing - I had no idea about that. Is that something I need to include in my response to the CP2000, or is that only relevant for filing my tax return?

For responding to the CP2000 notice, you don't necessarily need to reference code M specifically, but it's helpful to understand that's how it should have been reported. What's most important for your CP2000 response is to clearly show your original cost basis for the CERN shares and the conversion value. If you're disputing the amount on the CP2000, you'll want to complete the response form they provided, attach your supporting documentation from Morgan Stanley showing your purchase history and the conversion details, and provide a clear explanation of why you believe the notice amount is incorrect. If you're not disputing the amount and just paying it, you can simply follow the payment instructions.

This is really good advice. I went through a similar situation with Adobe acquiring another company and initially got a CP2000. After digging through all the paperwork, I found documentation that it qualified as a tax-free reorganization. Saved me thousands in unexpected taxes!