This thread has been incredibly helpful! I'm in a somewhat similar boat - just discovered my partner has some tax compliance issues and I've been losing sleep over it. What really stands out to me from reading everyone's experiences is how much the "unknown" factor amplifies the stress. It sounds like once you actually understand what you're dealing with - whether through the AI tools people mentioned, getting tax transcripts, or talking to professionals - the situation becomes much more manageable. I'm particularly interested in what @Hiroshi Nakamura mentioned about the IRS preferring payment plans over asset seizure. That's reassuring since I keep imagining worst-case scenarios about losing our home or having bank accounts frozen. One question for those who've been through this: how long did it typically take from when your spouse finally filed the back returns to when you felt like the situation was truly resolved? I'm trying to set realistic expectations for how long this stress might last once we start addressing it properly. Also, has anyone dealt with state tax issues alongside federal? I'm wondering if state agencies are typically as willing to work with payment plans as the IRS seems to be.

I've been following this thread closely as someone who went through a very similar situation last year. What helped me the most was creating a timeline of exactly which years needed to be addressed and gathering all the documents first before doing anything else. One thing I haven't seen mentioned yet is that if your husband was doing contract work, he might actually be entitled to refunds for some of those years if taxes were withheld from his payments or if he's eligible for certain credits. I know it sounds counterintuitive when you're panicking about owing money, but my husband ended up getting refunds for 2 of the 4 years he hadn't filed, which significantly reduced the overall amount owed. Also, regarding your joint accounts - I'd suggest opening a separate account in just your name and moving some funds there temporarily while this gets sorted out. It won't protect assets that are already jointly owned, but it can give you peace of mind knowing you have access to some money that's clearly yours if anything gets frozen during the resolution process. The key thing I learned is that the IRS is surprisingly reasonable once you start communicating with them. They genuinely want to collect what's owed rather than destroy people financially, so payment plans are almost always available. Your husband just needs to stop avoiding this - every day of delay makes it worse and more expensive.

Update your address with USPS first! Sometimes they forward IRS mail even tho they say they dont

Just went through this exact same situation last month! The phone route is definitely your best bet, but here's what worked for me: Call the IRS Identity Protection PIN line at 800-908-4490, but also have Form 14039 (Identity Theft Affidavit) filled out beforehand just in case they ask for it. They were able to generate a new PIN for my dependent on the spot once I verified all the info. Also make sure you've updated your address with the IRS using Form 8822 - that helped speed things up for me. Good luck!

This is super frustrating but totally normal! I went through the exact same thing last year. The "review" message showed up for about 3 weeks, then completely vanished and my status reset to the beginning. I was convinced something went wrong, but my refund actually hit my account just 5 days after the message disappeared. The IRS systems are notorious for these confusing status changes. When that review message disappears, it usually means they've finished whatever internal process they were doing and your return is moving forward in the queue. The fact that it reset to the first stage is actually pretty common - their system architecture is ancient and doesn't handle transitions between departments very smoothly. Since you haven't received any letters asking for additional documentation, you're probably in the clear. Just keep an eye on your bank account over the next week or two. The $3400 should show up soon!

Don't panic! This exact scenario happened to me in 2023. The "We're reviewing your tax return" message appeared for about 3 weeks, then vanished completely and the status bar reset like yours did. I was convinced something had gone horribly wrong, but it turned out to be totally normal. What's likely happening is your return moved from one IRS processing center to another, or from the review department back to regular processing. Their ancient computer systems don't communicate well with each other, so the WMR tool gets confused and resets. Since you haven't received any CP letters in the mail requesting additional information, you're probably fine. In my case, I got my refund about 10 days after the message disappeared. The reset status bar is misleading - your return is still being processed, just not where the WMR tool can track it properly. I'd suggest checking your bank account regularly over the next 1-2 weeks. Your $3400 should hopefully show up soon! The IRS systems are frustrating but they usually get there in the end.

Has anyone used TurboTax Self-Employed for handling all the vehicle and equipment deductions? I've been using it for my lawn care business but not sure if it covers all these contractor-specific deductions properly.

Just wanted to add my perspective as someone who went through this exact decision last year. I was doing 1099 work in construction and had similar big equipment purchases coming up. The key thing I learned is that the tax deductions are identical between sole prop and single-member LLC - you'll file Schedule C either way. The LLC really is mainly for liability protection, which became important for me once I started bringing in subcontractors occasionally (sounds like you do this too). For your truck and equipment, you can absolutely write these off even if they create a loss. I used Section 179 to deduct my truck and most equipment purchases in year one rather than depreciating over time. Just make sure you can document the business use percentage if you use the truck for any personal driving. One practical tip: if you're planning to show a loss this year due to equipment purchases, make sure you have good records showing this is a legitimate business operation and not a hobby. The IRS looks more closely at businesses showing losses in early years. Keep contracts, business plans, marketing materials, anything that demonstrates profit intent. The liability protection of an LLC became worth it for me once I realized how much exposure I had with expensive equipment and occasional subcontractors. The annual fees vary by state but for me it was worth the peace of mind.

Quick question - I'm in a similar situation but I used a regular credit card (not 0% financing). Do I still deduct the full cost in year 1 even though I'm carrying some of the balance to next year? And what about the interest on the credit card - is that separately deductible?

This thread has been incredibly helpful! I'm dealing with a similar situation but with a different twist - I financed a desktop computer setup (monitor, tower, peripherals) through Best Buy's 0% financing for 18 months. The total was around $3,200 and it's 100% business use for my consulting work. Reading through all the responses, it sounds like I can take Section 179 for the full amount in year 1 even though I'm making monthly payments. But I'm wondering - since this was multiple items purchased together as a "bundle," do I need to depreciate each component separately or can I treat the whole setup as one business equipment purchase? The receipt shows individual prices for each item but they were all financed together under one agreement. Also, @Hannah White mentioned keeping good documentation - would the financing agreement and receipts showing the business purpose be sufficient, or should I be doing something additional to prove exclusive business use?