I totally get that feeling of needing to mentally prepare before opening IRS mail! I went through the same thing last year when I received a letter from the Austin Processing Center about my freelance business. I let it sit on my kitchen counter for almost a week, building up all these worst-case scenarios in my head. When I finally opened it, it turned out they just needed me to verify some 1099 income that didn't exactly match what I reported on Schedule C - literally a $47 difference due to a client's reporting error. Took one phone call and a simple letter to resolve. The waiting and wondering was definitely the hardest part. Now I have a rule: IRS mail gets opened the same day I receive it, even if I can't deal with whatever's inside immediately. At least then I know what I'm working with and can plan accordingly. Whatever's in your letter, you'll handle it just fine. And if you need help figuring out next steps once you open it, this community is fantastic for walking through the process. Looking forward to your update when you're ready to tackle it!

I completely understand that anxiety! I received a similar letter from the Fresno center about 6 months ago regarding my photography business taxes, and I did the exact same thing - let it sit there while I mentally prepared for the worst possible scenario. Turns out it was just a CP2000 notice asking me to verify some 1099 income that a client had reported slightly differently than what I had on my records. The whole thing was resolved with a simple response letter and took maybe 30 minutes of actual work, but I probably spent hours worrying about it beforehand! One thing I learned from that experience is that the letter itself will tell you exactly what type of notice it is right at the top, and that can immediately help you gauge how serious it is. Most of the time, if it's something urgent like an audit, they'll make that very clear upfront. My advice would be to open it with a trusted friend or family member nearby if that helps with the anxiety - sometimes having moral support makes these things feel less overwhelming. And remember, even if it does require some action on your part, the IRS generally provides clear instructions on what they need and reasonable timeframes to respond. You've got this! Please update us when you find out what it is - I'm sure it'll be much more manageable than your mind is making it out to be.

I did a broker transfer from Merrill to TD Ameritrade about a year ago and can confirm it's not a taxable event for standard stock positions. The ACAT process moved everything without triggering any sales. One thing I'd add that might be helpful - if you have any foreign stocks or ADRs (American Depositary Receipts), those sometimes have special handling during transfers. In my case, I had some European stocks that took an extra few days to transfer compared to my domestic positions. The brokers had to coordinate with the foreign custodians, which added some complexity but didn't change the non-taxable nature of the transfer. Also worth mentioning - if you have any automatic investment plans or recurring purchases set up, make sure to pause those before starting the transfer. I forgot about a monthly investment plan and it tried to execute during the transfer window, which created some confusion that took a few days to sort out. The whole process took about 8 business days for me, and TD Ameritrade covered the $75 ACAT fee from Merrill. Having better research tools and platform features has definitely been worth the temporary inconvenience of the transfer process.

I recently went through this exact same process when transferring from Fidelity to Interactive Brokers last month. Can confirm it's not a taxable event - the ACAT transfer moved all my positions without any sales being triggered. One thing I'd recommend that saved me some headaches: before initiating the transfer, log into your current broker's website and download/print comprehensive reports showing your complete cost basis history for all positions. Not just the summary, but the detailed lot-by-lot breakdown showing every purchase date and price. I also took screenshots of every account page showing my holdings. This turned out to be super valuable because about 3 weeks after my transfer completed, I noticed that one of my older positions (a stock I'd been buying regularly for 4+ years) had some cost basis discrepancies. Having my original detailed records made it really easy to work with Interactive Brokers to get everything corrected. The transfer itself took 7 business days, there was a $75 fee from Fidelity that IB reimbursed, and I'm much happier with the lower costs and better trading platform. Just make sure you don't have any pending trades or unsettled funds when you start the process, as that can delay things.

Don't forget about state taxes too! Had an internship in California while being a resident of Texas and got absolutely blindsided by CA state taxes that took like 9% of my intern pay even though I was only there 12 weeks.

This is such a common confusion for students! One thing that hasn't been mentioned yet is that you should also consider whether you'll have any education expenses this year that could qualify for tax credits like the American Opportunity Tax Credit (AOTC). If you file independently and have qualifying education expenses, you might be able to claim up to $2,500 in credits yourself. But if your parents claim you as a dependent, they get to claim those credits instead (assuming their income isn't too high). The AOTC phases out for higher-income taxpayers, so sometimes it's more valuable in the student's hands. Also, make sure you understand how your stipend is classified. Some internship stipends are considered wages (subject to payroll taxes), while others might be considered fellowships or scholarships (which have different tax treatment). Your employer should clarify this on your tax documents. The key is running the numbers both ways - total family tax liability with you as dependent vs. independent - and seeing which scenario saves the most money overall for your family.

If you get a CP40, you need to act FAST. This is their "Intent to Levy" notice, which means they're about to start taking your money from bank accounts, garnishing wages, etc. You have 30 days from the date on the notice to request a Collection Due Process hearing by filing Form 12153. This will put a hold on any collection actions while you sort things out. Don't ignore this one!

I went through something very similar last year - got a CP40 out of nowhere for my 2020 taxes. Turns out the IRS had been sending notices to an address I lived at briefly during college, even though I'd been filing with my current address for years. Here's what worked for me: First, definitely verify it's legitimate by calling the IRS directly (use the number from their official website, not the notice). When you call, ask them to read you the mailing addresses they have on file for each year - this is how I discovered the problem. Second, request Form 12153 for a Collection Due Process hearing immediately. This stops all collection actions while you sort things out. You have 30 days from the notice date, so don't wait. Third, file Form 8822 to update your address with the IRS if there's been any confusion about where you live. Even if you think they have the right address, do it anyway to create a paper trail. The whole thing took about 3 months to resolve, but the Collection Due Process hearing gave me the time I needed without worrying about my accounts getting frozen. The IRS agent I finally spoke with was actually pretty helpful once I got through to them.

One thing nobody's mentioned - don't forget about state filings for your S-corp! Depending on your state, you might need to file separate state returns for both your S-corp and personal taxes. TurboTax Business handles most state S-corp returns, but the process can be even more confusing than federal. Also, if you do business in multiple states or have nexus issues, self-filing gets complicated real quick. My S-corp operates in two states and I tried doing it myself last year... ended up giving up and hiring an accountant midway through.

I successfully filed both my 1120-S and 1040 myself using TurboTax for the past two years. As a single-member S-corp, it's definitely manageable, but here are some key things that helped me: The biggest challenge isn't the software - TurboTax does a good job with the guided questions. The real work is in preparation. Make sure you have your books reconciled properly before you start. I use QuickBooks and export my P&L and Balance Sheet directly, which saves tons of time. One mistake I made my first year was not keeping proper documentation for business expenses. The IRS wants to see business purpose for everything, especially for home office deductions and travel expenses. Now I keep a simple spreadsheet with receipts and business justification throughout the year. The reasonable compensation issue is real - I research industry salary surveys for my role and document my reasoning. Better to err on the side of paying yourself a bit more in salary than dealing with IRS scrutiny later. Overall, I save about $1,000 annually doing it myself, and I feel much more in control of my tax situation. Just budget extra time your first year and don't wait until the last minute!