


Ask the community...
The fact that we need to debate between different types of tax professionals just shows how INTENTIONALLY COMPLICATED our tax system is. In most developed countries, the government just sends you a statement with what you owe based on what's already reported to them. But no, here we need to choose between CPAs, EAs, tax attorneys, and tax preparers - all with different credentials, pricing, and specialties. And if you make mistakes or can't navigate this labyrinth of complexity? Penalties and interest that compound the already stressful situation. It's a system DESIGNED to benefit the wealthy who can afford the best tax professionals.
for real tho. my cousin in finland gets sent his tax form already filled out and just has to check if its right. meanwhile im spending hours trying to figure out if i can deduct my home office or if that'll trigger an audit π
For this specific situation - multiple years of unfiled returns plus an unreported home sale - I would recommend a tax professional with experience in IRS collections and the Voluntary Disclosure program. Based on my experience working with similar cases, here's what to look for: 1. Ask specifically about experience with unfiled return cases and IRS voluntary disclosure 2. Inquire whether they typically request penalty abatement when filing delinquent returns (this can save thousands) 3. Check if they're familiar with partial payment installment agreements and offer in compromise options 4. Make sure they'll pull and analyze your cousin's tax transcripts before filing anything Generally, I've found that Enrolled Agents who specifically advertise tax resolution services tend to be more cost-effective for these cases than general CPAs. Look for someone who regularly handles IRS collections issues rather than someone who primarily prepares current-year returns.
This is incredibly helpful, thank you! I hadn't heard of the Voluntary Disclosure program or penalty abatement before. I'll definitely ask about these specific things when interviewing potential tax pros. Do you think it would make sense to have my cousin request their own tax transcripts first, or is that something best left to the professional?
Here's what you need to know about tax returns and refunds: 1. Filing method matters: - E-filed returns are processed faster (usually 3 weeks) - Paper returns can take 6-8 weeks or more 2. Check your status: - Use the 'Where's My Refund' tool on IRS.gov - You'll need your SSN, filing status, and exact refund amount 3. Common delays: - Errors on your return - Incomplete information - Identity theft prevention measures - If you claimed certain credits (like Earned Income Tax Credit) 4. What to do: - Be patient if it's only been a few weeks - Double-check that you entered your direct deposit info correctly - If it's been more than 8 weeks, try contacting the IRS 5. For future reference: - Always keep a copy of your tax return - Consider using tax preparation software for accuracy - File electronically and choose direct deposit for fastest refund Hope this helps! Let me know if you have any other questions.
Wow, thanks for the detailed info! This is super helpful. I'll definitely check the 'Where's My Refund' tool first.
Great advice! I'd add that if you moved recently, make sure the IRS has your current address. You can file Form 8822 to update it.
Am I the only one who thinks its ridiculous that we have to jump through so many hoops just to get our own money back? The whole system needs an overhaul smh
Totally agree. In some countries, the govt just sends you a bill or a refund automatically. Why can't we have that?
just do it all at 100% and if u get audited say it was a mistake lol. the irs is so understaffed they audit like 0.1% of people anyway
This is extremely poor advice that could result in significant penalties and interest if caught. The IRS specifically targets improper business deductions for audit, and Schedule C filers are audited at higher rates than the general population. Willfully claiming 100% business use for mixed-use assets is tax fraud, not a "mistake." Penalties for fraudulent returns can include 75% of the underpaid tax amount plus interest and potential criminal charges.
I'm confused about business percentages vs. personal use. If I use my car 56% for business, does that mean I deduct 56% of ALL car expenses (gas, insurance, maintenance) or is it different for each type of car expense? And do I need to track the percentage separately for my home office, phone, internet, etc. or can I use the same percentage for everything?Sorry for the basic questions. This is my first year with a side business and I'm completely overwhelmed by Schedule C!
Great questions. For vehicles, yes, if you choose the actual expenses method (vs. standard mileage rate), you would apply the 56% business-use percentage to ALL vehicle expenses - gas, insurance, maintenance, depreciation, etc.For other expenses, you need to calculate and track the business percentage separately for each category:- Home office: Based on the percentage of your home's square footage used exclusively for business- Phone/internet: Based on estimated business usage of each service- Computer equipment: Based on business vs. personal useEach category needs its own justified percentage and documentation. This is why there's no "bulk edit" feature - different expense types typically have different business-use percentages.
Have you checked if there's an IRS office near you? Sometimes you can make an appointment and talk to someone in person. It's a pain, but it might be faster than waiting on hold forever.
3 months? Amateur. Try 8 months and counting π
Lukas Fitzgerald
I'm in the same boat, OP. This whole process is so stressful. Sending good vibes your way!
0 coins
Xan Dae
β’Thanks, appreciate the support! We'll get through this πͺ
0 coins
Ev Luca
Has anyone had luck negotiating the amount owed? I've heard mixed things about offer in compromise.
0 coins
Avery Davis
β’I tried that route. It's a long process and they scrutinize EVERYTHING. Unless you're in dire financial straits, it's usually not worth it imho
0 coins
Collins Angel
β’My cousin got his debt reduced by like 40% through OIC. But yeah, it took forever and was super stressful
0 coins