Quick tip from someone who went through this exact scenario two years ago: gather proof of where you WERE during the time the IRS claims you were working at this company. I was a student too, and I provided: 1. My class schedule from that semester 2. My student ID swipe records showing I was on campus 3. My part-time job timesheets from the campus library 4. Bank statements showing regular withdrawals near campus (not near the supposed employer) The IRS attorney took one look at this package and realized it would be impossible for me to have worked full-time at the company in question. We settled before ever going to court. Also, call the SSA and request a wage and income transcript for that tax year. It might show who actually received the income (could be someone with a similar SSN to yours).

Just adding that I went through something like this and learned identity theft might be involved. Request an Identity Protection PIN from the IRS at https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin Also, check your credit report immediately. Someone might have used your SSN for employment and that could appear there. The company not existing anymore is actually common in these scams. Sometimes "companies" are created just to file fake W-2s and then disappear. Make sure you mention this suspicion in your court documents.

One thing nobody's mentioned yet - you should look into establishing a separate entity specifically for your real estate development activities. I have a plumbing business and rental properties, and my CPA recommended setting up: 1. My original S-Corp for the plumbing business 2. An LLC taxed as a partnership for the rental properties 3. A separate LLC for property development/flips This way, there's no confusion about which expenses belong where. My plumbing business can legitimately bill my development projects at market rates for any plumbing work. For materials, I keep separate accounts and credit cards for each business to avoid commingling funds. For your specific situation, materials for your rentals will still need to be depreciated over time, but with the right entity structure and cost segregation, you can optimize your tax situation significantly. Just don't make the mistake of running everything through your landscaping business like I initially did with my plumbing company.

I've been doing exactly what you're trying to do for about 7 years now. Started with a painting company, moved into flips, and now have 11 rental units. Here's what I've learned: 1. For flips: You CANNOT deduct materials as expenses through your landscaping business. These costs are part of your "basis" in the property and offset your profit when you sell. You might need to amend previous returns if you've been doing this wrong. 2. For rentals: New construction costs are capitalized and depreciated over 27.5 years (residential). BUT - you can do a cost segregation study that lets you depreciate many components much faster (5-15 years). This can front-load deductions in the early years. 3. Entity structure: Consider having your landscaping business be a legitimate contractor for your real estate projects. Charge fair market rates, keep proper documentation, and you can move some profit that way. 4. 1031 exchanges: Look into these for your flips if you want to defer taxes and build your rental portfolio faster. Don't get discouraged! The tax rules for real estate actually favor investors once you understand them properly. My tax bill is way lower now than when I was just running my painting business.

Anybody know why there's such a big gap between when they "process" your return and when they actually send the money? Seems like once they approve it they could just send the refund immediately. Mine was processed on 2/9 but refund date shows 2/21...that's ridiculous.

Pro tip: If you have the 846 code on your transcript with a specific date, that's your ACTUAL refund date. That's the date they send the payment to your bank. Then it usually takes 1-2 business days for your bank to post it. But the IRS doesn't always hit that exact date - sometimes it comes a day or two early. The processing date is different from the refund issued date.

11 One important thing no one mentioned: You need to fill out a W9 for EACH client you work with. But at tax time, you'll combine all your 1099 income onto a single Schedule C. Also, even if you don't get a 1099 from every client (maybe they paid you less than $600), you STILL have to report ALL income. The IRS doesn't care if you didn't get a form - you still owe taxes on every dollar you earn!

21 I'm confused by the responses here. I filled out a W9 for my client 6 months ago but haven't received a 1099 yet. Should I be concerned or is this normal?

One thing to watch for - if the funds went directly to your bank account instead of to the medical providers, make sure you keep extra good records. My sister had a similar situation and ended up getting a letter from the IRS because the crowdfunding platform issued a 1099-K (they have to for amounts over $20K). She had to respond explaining these were gifts for medical purposes, not income from selling goods/services. It got resolved but was stressful. Just keep all your documentation showing the source of funds and what they were used for, especially medical bills and related expenses.

Has anyone used TurboTax to file in this situation? I'm wondering if there's a specific place where this kind of thing should be noted, even if it's not taxable income. I'm worried about just not mentioning a large sum of money that went into my account.