whatever you do, DON'T ignore the letter. I made that mistake and it took months to sort out. Just bite the bullet and deal with it asap

I had to go through this last year. It's annoying but not as bad as it seems. Just be patient and polite with the IRS folks, they're just doing their job. You'll get through it!

I'm in the same boat, OP. This whole process is so stressful. Sending good vibes your way!

Has anyone had luck negotiating the amount owed? I've heard mixed things about offer in compromise.

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 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.

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.

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

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

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!