As someone new to this community, I want to thank everyone for this incredibly thorough discussion! I'm actually dealing with the exact same situation right now - my tax preparer just asked for SSN card copies for the first time, and I was really unsure about it. What I find most helpful about this thread is how it moved from initial skepticism to practical solutions. The security questions that @Noland Curtis provided are going to be my starting point when I meet with my preparer next week. I especially appreciate how @Reina Salazar followed up to share how her conversation went - it really shows that these concerns can be addressed professionally. I'm definitely going to look into getting an Identity Protection PIN as well. The fact that it's available proactively now seems like such a smart safeguard, especially given how common tax identity theft has become. One thing that strikes me is how much the tax industry has had to evolve in response to fraud. It sounds like what seemed like unusual requests are actually becoming standard practice to protect both clients and preparers. I'm curious if anyone knows whether these enhanced verification requirements have actually been effective in reducing tax fraud overall? Thanks again for sharing all your experiences - this community is incredibly helpful for navigating these kinds of concerns!

As a newcomer to this community, I have to say this discussion has been incredibly enlightening! I'm currently facing this exact situation - my tax preparer is requesting SSN card copies for the first time, and I was genuinely concerned about whether this was legitimate or a red flag. What I appreciate most about this thread is how it demonstrates the value of asking informed questions rather than making assumptions. The comprehensive list of security questions that several members have shared gives me a clear framework for evaluating my preparer's practices. I'm particularly grateful for the specific points about Written Information Security Plans and professional credentials - these are things I never would have thought to verify. The discussion about Identity Protection PINs has also been eye-opening. I had no idea this was available proactively to anyone, not just identity theft victims. Given how common tax fraud has become, it seems like such a straightforward preventive measure. I'm curious about one aspect that hasn't been fully explored - for those who have gone through this verification process with their preparers, have you noticed any changes in how they communicate about other aspects of your tax situation? I'm wondering if preparers who are more thorough about security documentation also tend to be more detailed in their explanations of tax strategies or potential deductions. Thanks to everyone who shared their experiences, especially those who provided follow-up updates. This kind of practical, balanced discussion is exactly what makes community forums valuable!

I went through almost the exact same situation three years ago - profitable business for several years, then suddenly hit with a significant loss due to market conditions. The emotional side really caught me off guard too. You build something from nothing, watch it succeed, and then feel like you're failing when circumstances beyond your control impact your bottom line. From a practical standpoint, that $27K loss is actually going to provide substantial tax relief. Since you've been making quarterly estimated payments based on previous profitable years, you're likely looking at getting most or all of that back, plus additional refund if the loss drops your overall tax liability below what you've already paid. The IRS won't bat an eye at one loss year after 5 profitable ones - that actually demonstrates you're running a legitimate business that responds to real market forces, not a hobby. I'd suggest filing as soon as you have all your documents ready since you'll want that refund for cash flow. Keep detailed records just like always, but don't second-guess legitimate deductions. If anything, make sure you're capturing every allowable expense since they're more valuable in a loss year for reducing future tax liability through carryforwards. The business will recover - mine did, and many others have too. This is just a rough patch, not a permanent failure.

Connor, I really empathize with what you're going through. Running a business through tough times is incredibly challenging, both financially and emotionally. The fact that you've maintained profitability for 5 years shows you have solid business fundamentals - this downturn is likely more about external market conditions than your abilities as a business owner. From a tax perspective, you're actually in a favorable position. Your $27K loss will directly reduce your taxable income, and since you've been making quarterly estimated payments based on previous profitable years, you should expect a substantial refund. The IRS won't view one loss year after 5 profitable ones as suspicious - it actually reinforces that you're running a legitimate business responding to real market conditions. Make sure to claim all your legitimate business expenses. Don't hold back on valid deductions like home office, vehicle use, equipment, supplies, or professional services just because you're showing a loss. These expenses are even more valuable in a loss year since they can increase your refund and create larger carryforward amounts for future profitable years. Consider filing early once you have all your documentation ready - getting that refund sooner will help with cash flow while you work on recovery. Many successful businesses go through cycles like this and emerge stronger. Your track record shows you know how to build profitability, and this temporary setback doesn't erase that experience.

Great thread! I wanted to share a cautionary tale about Form 8822-B timing. I moved my consulting business last year and filed the 8822-B promptly, but I made the mistake of not updating my address with my state's Secretary of State office at the same time. The IRS processed my federal address change fine, but I missed some important state tax correspondence because I forgot about the state-level requirements. Each state has different procedures - some require separate filings, others automatically sync with IRS records, and some have their own address change forms. For anyone doing an address change, I'd recommend creating a checklist that includes: IRS Form 8822-B, state business registration updates, state tax department notifications, and don't forget your business license and any professional licenses if applicable. It's a pain to coordinate, but missing state requirements can be just as problematic as missing IRS deadlines. Also, if you have quarterly estimated payments set up, double-check that your payment vouchers reflect the new address too - I had one payment get delayed because of an address mismatch.

Really helpful discussion here! I just want to emphasize something that might save others some headaches - when you're dealing with Form 8822-B and electronic signatures, make sure you check if your business has multiple EINs or entity structures that might need separate address changes. I run a small consulting business that's an LLC but elected S-Corp tax treatment, and I initially thought one 8822-B would cover everything. Turns out I needed to be more specific about which entity/EIN the address change was for, and I also had to consider whether my personal tax returns (Schedule K-1 from the S-Corp election) needed separate attention. The IRS agent I eventually spoke with explained that if you have multiple business entities or complex structures, it's worth calling to confirm exactly what forms you need and how to properly complete them. A small mistake in entity identification can delay the whole process significantly. Also, for anyone using electronic signatures - I found that Adobe Sign worked perfectly and included all the compliance features mentioned earlier in the thread. The key is making sure your e-signature solution captures the signer's IP address and includes a detailed audit trail, which both Adobe Sign and DocuSign handle automatically.

Has anyone successfully gotten a property tax exemption? I'm turning 65 next month and heard seniors can get their taxes reduced in some places.

I totally get your frustration - I felt the same way when I bought my first place three years ago! What helped me was understanding that property taxes are actually one of the most stable funding sources for essential local services. Unlike income taxes that can fluctuate with the economy, property taxes provide consistent revenue for things like schools, emergency services, and infrastructure that directly benefit your neighborhood. Regarding your concern about losing your home - yes, it's technically possible, but most counties have extensive programs to help people avoid this situation. Many offer payment plans, hardship deferrals, and senior exemptions (like others mentioned). The process usually takes years of non-payment before foreclosure, giving plenty of time to work out solutions. I'd suggest calling your county assessor's office to ask about available programs. Also, if your assessment seems too high compared to similar homes, it's definitely worth challenging it. The worst they can say is no, but you might save hundreds or even thousands annually. Your aunt might especially benefit from senior exemption programs that could freeze or reduce her taxes based on her age and income.

Does anyone else's WMR still say processing? Filed 2/1 and nothing has changed smh

pro tip: check your transcript instead of WMR. WMR is always behind