Can't reach IRS? Claimyr connects you to a live IRS agent in minutes.
Claimyr is a pay-as-you-go service. We do not charge a recurring subscription.
Using Claimyr will:
- Connect you to a human agent at the IRS
- Skip the long phone menu
- Call the correct department
- Redial until on hold
- Forward a call to your phone with reduced hold time
- Give you free callbacks if the IRS drops your call
If I could give 10 stars I would
If I could give 10 stars I would If I could give 10 stars I would Such an amazing service so needed during the times when EDD almost never picks up Claimyr gets me on the phone with EDD every time without fail faster. A much needed service without Claimyr I would have never received the payment I needed to support me during my postpartum recovery. Thank you so much Claimyr!
Really made a difference
Really made a difference, save me time and energy from going to a local office for making the call.
Worth not wasting your time calling for hours.
Was a bit nervous or untrusting at first, but my calls went thru. First time the wait was a bit long but their customer chat line on their page was helpful and put me at ease that I would receive my call. Today my call dropped because of EDD and Claimyr heard my concern on the same chat and another call was made within the hour.
An incredibly helpful service
An incredibly helpful service! Got me connected to a CA EDD agent without major hassle (outside of EDD's agents dropping calls – which Claimyr has free protection for). If you need to file a new claim and can't do it online, pay the $ to Claimyr to get the process started. Absolutely worth it!
Consistent,frustration free, quality Service.
Used this service a couple times now. Before I'd call 200 times in less than a weak frustrated as can be. But using claimyr with a couple hours of waiting i was on the line with an representative or on hold. Dropped a couple times but each reconnected not long after and was mission accomplished, thanks to Claimyr.
IT WORKS!! Not a scam!
I tried for weeks to get thru to EDD PFL program with no luck. I gave this a try thinking it may be a scam. OMG! It worked and They got thru within an hour and my claim is going to finally get paid!! I upgraded to the $60 call. Best $60 spent!
Ask the community...
- DO post questions about your issues.
- DO answer questions and support each other.
- DO post tips & tricks to help folks.
- DO NOT post call problems here - there is a support tab at the top for that :)
Join the conversation
Join the conversation
I've been through this exact nightmare myself - 3 years behind and absolutely paralyzed by anxiety about it. What finally got me moving was realizing that the IRS actually wants you to file those missing returns, and they're surprisingly reasonable to work with when you come forward voluntarily. Here's my practical advice: Start by gathering ALL your tax documents for the missing years (W-2s, 1099s, investment statements, etc.). Even if some are missing, get what you can and start there. The IRS can provide transcripts of what they have on file for you if needed. For the actual filing, while PriorTax is legitimate, I'd honestly recommend checking out FreeTaxUSA for multiple years since it's much cheaper (around $20 per federal return vs $45+ elsewhere). Yes, you'll have to mail the returns instead of e-filing, but that's an IRS rule for prior years anyway. The penalties really aren't as catastrophic as your brain is probably telling you. I owed about $5,800 across three years and my total penalties were under $900. The key is filing ASAP because that failure-to-file penalty (5% per month) is the real killer. Most importantly: stop letting fear keep you frozen. Every day you wait just makes it slightly worse. You've already taken the hardest step by deciding to deal with it. Trust me, the relief you'll feel once it's handled is incredible.
This is exactly what I needed to hear! I've been stuck in that paralysis phase for months now, constantly thinking about it but too scared to actually do anything. Your point about the IRS actually wanting you to file the missing returns is something I hadn't considered - I kept thinking of them as the enemy waiting to pounce. The penalty numbers you shared are really reassuring too. I think I've been catastrophizing this whole situation in my head. $900 in penalties on almost $6k owed really puts things in perspective. I'm definitely going to start gathering my documents this weekend. I know I'm missing some 1099s from freelance work, but like you said, I should start with what I have. Quick question though - when you say the IRS can provide transcripts of what they have on file, is that something I can request online or do I need to call that dreaded phone number? Thanks for the push I needed to finally get moving on this!
@Jasmine Quinn You can actually request tax transcripts online! Go to irs.gov and look for Get "Transcript Online -" you ll'need to verify your identity, but it s'way easier than calling. They ll'show you what W-2s, 1099s, and other tax documents were reported to the IRS for each year, which is super helpful for filling in gaps. The transcript won t'have everything like (if someone paid you cash and didn t'file a 1099 ,)but it ll'show you the major income sources the IRS already knows about. That way you can make sure you re'not missing anything they ll'eventually match up anyway. Diego s'advice about starting with what you have is spot on. I made the mistake of spending weeks trying to track down every single document before I started, when I could have been making progress with what I already had. You ve'got this!
I went through almost the exact same situation a couple years ago - was 3 years behind and absolutely terrified about what would happen. Let me share what I learned that might help: First, yes PriorTax.com is legitimate and IRS-authorized, but it does get expensive when you're filing multiple years. I ended up using a mix of services to save money - TurboTax for one year and FreeTaxUSA for the others. The most important thing is to file those returns ASAP, even if you can't pay everything immediately. The failure-to-file penalty is 5% per month (up to 25%) while the failure-to-pay penalty is only 0.5% per month. So filing stops the bigger penalty from growing. For your 2023 1099 income, make sure to report it on your 2023 return specifically - don't try to add it to a current year return. The IRS will eventually match that up anyway since they received a copy of the 1099. Regarding payment, yes you can absolutely pay all your back taxes when you file. If you can't afford to pay everything at once, the IRS has very reasonable payment plan options - you can even set them up online for a small fee. The penalties really aren't as devastating as your mind is probably making them out to be. I owed about $4,500 total across three years and my penalties/interest were around $600. Definitely not fun, but not the financial disaster I was imagining. Don't let fear keep you paralyzed like I did - every month you wait just makes it slightly worse. The relief of finally getting it handled is absolutely worth it!
Thank you so much for sharing your experience! This is incredibly helpful and reassuring. I'm in almost the same boat - been avoiding this for way too long and building it up in my head as this massive catastrophe. Hearing that your penalties were around $600 on $4,500 owed really puts things in perspective. I'm definitely going to start gathering my documents this weekend and stop letting fear paralyze me. Your point about the failure-to-file penalty being so much worse than failure-to-pay is something I didn't know - that alone makes me want to get moving on this ASAP. Quick question: when you used the mix of TurboTax and FreeTaxUSA, did you run into any issues with having different software for different years? I'm wondering if there are any complications from not having everything in one place, or if it's pretty straightforward to just treat each year separately. Thanks again for the encouragement - I really needed to hear from someone who actually went through this successfully!
Join the conversation
I've been dealing with K-1 forms for a few years now and this is such a common frustration! The issue you're running into is that FreeTaxUSA, while great for most standard tax situations, has limitations when it comes to the more complex aspects of partnership tax reporting that K-1s often involve. Since you mentioned this is from a rental property investment, there are likely passive activity rules at play that require additional forms like Form 8582. Even though your situation might seem straightforward, rental property partnerships often trigger these rules automatically, and FreeTaxUSA just doesn't have the capability to handle the calculations properly. I'd strongly recommend switching to software that can handle K-1s properly rather than trying to work around it. TaxAct Premium seems to be the most cost-effective option that people have had success with based on the other comments here. Yes, it's more expensive than FreeTaxUSA, but filing incorrectly because of software limitations could cost you way more in the long run if the IRS flags your return for review. Don't feel bad about having to switch - this happens to tons of people every year when their tax situation gets just a bit more complex than basic software can handle!
This is exactly what I needed to hear! I was starting to feel like I was doing something wrong since FreeTaxUSA has worked perfectly for me in the past. It's reassuring to know this is a common issue and not just me being incompetent with tax software. You're absolutely right about not wanting to risk filing incorrectly - the potential headache and costs from an IRS review would definitely outweigh the extra money for better software. Based on all the recommendations in this thread, I think I'm going to bite the bullet and switch to TaxAct Premium. Thanks for putting it in perspective and making me feel less frustrated about the whole situation!
I've been through this exact frustration with FreeTaxUSA and K-1 forms! The issue usually comes down to specific reporting requirements that FreeTaxUSA simply can't handle. For rental property K-1s like yours, it's almost always related to passive activity loss rules or at-risk limitations that require additional forms. Here's what I'd recommend: First, check Box 20 on your K-1 for any letter codes - if you see codes A, B, C, or D, that's definitely what's causing the error. These codes indicate you need Form 8582 for passive activity limitations, which FreeTaxUSA doesn't support well. Based on everyone's experiences here, TaxAct Premium seems to be the sweet spot for handling K-1s without breaking the bank. It's more than FreeTaxUSA but way less than TurboTax Premier, and it actually knows how to properly process all the passive activity rules and generate the right supporting forms automatically. Don't try to manually enter K-1 info in other sections of FreeTaxUSA - that's asking for trouble with the IRS. K-1 income has to flow through specific schedules and forms to be reported correctly. Better to spend a bit more on proper software than deal with potential audit issues later!
This whole thread has been incredibly helpful! I'm completely new to dealing with K-1 forms - this is my first year having one from a small investment property my spouse and I bought with another couple. I was getting so stressed seeing that error message in FreeTaxUSA because I thought I was doing something wrong. Reading everyone's experiences here makes me feel so much better about just switching software instead of trying to figure out some complicated workaround. It sounds like TaxAct Premium is definitely the way to go based on multiple people's recommendations. Quick question - when you switch from FreeTaxUSA to TaxAct, do you lose the state filing that was included, or do you have to buy that separately? Just want to make sure I understand the full cost before I make the switch. Thanks for all the detailed explanations everyone!
Join the conversation
One additional consideration that hasn't been mentioned yet - if you received a 1099-MISC from the sawmill for the $3,100 payment, make sure the income is reported in the correct section of your tax return. Sometimes mills will report timber payments as miscellaneous income rather than proceeds from sales, which could cause the IRS computer systems to flag a discrepancy if you only report it on Schedule D. If you did receive a 1099-MISC, you'll want to report the full $3,100 as "Other Income" on your Form 1040 and then show the offsetting capital gain/loss calculation on Schedule D. This way the IRS sees that you've accounted for all reported income even though the net tax treatment is still as a capital gain. Also, since you mentioned this was partly an environmental response to an invasive species, you might want to check if your state or county offers any tax incentives for invasive species management on private property. Some jurisdictions have programs that provide credits or deductions for property owners who take proactive steps to control invasive pests, though these are typically separate from federal tax considerations.
This is really helpful information about the 1099-MISC reporting! I haven't received any tax documents from the sawmill yet, but it's good to know how to handle it if I do get a 1099-MISC instead of a 1099-B. The dual reporting approach you described makes sense to avoid any computer matching issues with the IRS. I'm also intrigued by your mention of state or county incentives for invasive species management. I hadn't considered that angle at all, but since spotted lanternfly is such a serious problem in our area and we were essentially doing environmental remediation, it's worth investigating. Do you know if these programs typically require pre-approval, or can they be claimed retroactively if you have proper documentation of the invasive species threat? The timing is particularly relevant since we acted on professional arborist advice specifically to prevent further spread of the infestation to neighboring properties. Having that environmental protection angle could potentially provide additional tax benefits beyond just the capital gains treatment.
Most invasive species management programs I'm familiar with require pre-approval or at least advance notification to qualify for tax benefits. However, since you have documented professional arborist advice recommending the removal specifically for spotted lanternfly control, you might still have a case for retroactive consideration. I'd suggest contacting your county extension office or state forestry department - they usually administer these programs and can tell you definitively whether any incentives exist in your area and if your situation might qualify. Pennsylvania actually has been pretty proactive about spotted lanternfly management, so there's a decent chance some kind of program exists. Even if there aren't direct tax benefits, the environmental protection documentation could strengthen your position that this was a necessary property management decision rather than speculative timber harvesting, which supports the capital gains treatment you're already planning to use. The key is that you acted on professional advice to prevent ecological damage - keep emphasizing that aspect in your documentation since it clearly distinguishes this from a profit-motivated timber business.
As a tax professional, I want to emphasize a few additional points that could be crucial for your situation. First, make sure you're prepared for potential IRS questions about the fair market value of the timber. Since you received $3,100 from the mill, that establishes the fair market value, but if you're claiming any basis in the trees, you may need to substantiate that the timber was worth more than $3,100 before the pest damage. Second, consider keeping detailed records of the spotted lanternfly infestation in your area - photos, local government notices, extension service bulletins, etc. This creates a paper trail showing that your decision was based on legitimate environmental threats rather than market timing. Finally, since multiple neighbors participated, there might be economies of scale that affected the pricing. Make sure your individual allocation of both costs and proceeds is clearly documented and defensible. The IRS sometimes scrutinizes transactions involving multiple parties to ensure each person is reporting their fair share. One practical tip: if you're using tax software, you might need to manually override some entries since timber sales from personal property are relatively uncommon and the software might not handle all the nuances correctly. Consider having a tax professional review your return if the amounts are significant enough to warrant the expense.
This is excellent professional advice, especially about documenting the fair market value and pest infestation timeline. As someone new to this community, I really appreciate how thorough everyone has been in covering all the angles - from basic capital gains treatment to state-specific considerations and even environmental incentives. The point about tax software potentially not handling timber sales correctly is particularly valuable. Given the complexity of this situation with shared costs, pest management justification, and potential basis calculations, it definitely seems worth consulting a tax professional rather than trying to navigate all these nuances alone. One question I have after reading through all these responses - would it be advisable to get a professional timber appraisal to establish the pre-damage value of the trees, or is the actual sale price sufficient documentation for the IRS? It sounds like having that baseline value could be important if there are ever questions about the legitimacy of the transaction or the reasonableness of the pricing.
Join the conversation
I just went through almost the exact same scenario. One other thing to consider - if your grandfather is elderly or in poor health, it might actually be more advantageous from a tax perspective to inherit the property rather than receiving it as a gift. With an inheritance, you get a "stepped-up basis" to the fair market value at the time of death, which eliminates all the capital gains that accrued during his lifetime. Not a pleasant thing to think about, but it can make a massive difference tax-wise.
That's actually a really important point I hadn't considered. My grandfather is 87 and while he's in decent health, waiting to inherit rather than taking it as a gift could potentially save a lot in taxes. Though emotionally that's a tough calculation to make. I'll have to think about this angle too.
One thing that hasn't been mentioned yet is the potential impact of depreciation recapture if your grandfather has been claiming depreciation on the property (if it was used as a rental or business property at any point). Even with the primary residence exclusion, any depreciation taken would need to be "recaptured" and taxed at 25% when you sell. Also, make sure to get a professional appraisal when the gift transfer happens to establish the fair market value for gift tax purposes. The IRS can challenge valuations that seem too low, especially on high-value properties like this. Given the complexity and the dollar amounts involved, I'd strongly recommend consulting with both a tax professional and an estate planning attorney before making any decisions. The potential tax savings from getting this right could easily pay for the professional advice many times over.
This is really comprehensive advice! The depreciation recapture point is huge - I didn't even know that was a thing. Just to clarify, would that apply even if grandpa only lived in the house and never rented it out? Or is it only if he claimed rental/business depreciation at some point? Also wondering about the professional appraisal - is that required by law for gift transfers or just recommended to avoid IRS challenges later?
Yara Khoury
I went through this exact same situation last year and can confirm your software is correct! Schedule C losses absolutely can offset W-2 income - it's one of the legitimate tax benefits of running a business, even when you're starting out. The confusion you're experiencing is super common because many people think business and employment income are completely separate for tax purposes, but they're not. Your total income on your 1040 includes both your W-2 wages AND your Schedule C business income (or loss). When you have a business loss, it reduces your overall adjusted gross income. Just keep detailed records of all your business expenses and activities. The IRS wants to see that you're operating with a genuine profit motive - which it sounds like you are since you invested in equipment and were actively trying to generate revenue. Starting businesses often have losses in their early years due to startup costs, and that's completely normal and expected. Your $2.7k loss reducing your taxable income is legitimate and could save you several hundred dollars in taxes depending on your bracket. Don't worry about filing incorrectly - you're doing this right!
0 coins
Gianna Scott
•This thread has been so reassuring! I'm in my first year of freelance web design while keeping my full-time job, and I've been terrified about how to handle the tax side of things. I spent about $2,500 on a new laptop, software licenses, and marketing materials, but only brought in about $800 in revenue so far. Reading everyone's experiences here gives me confidence that I can legitimately deduct this loss against my regular salary. I've been keeping meticulous records of everything - every receipt, every business mile driven, even time logs showing how much effort I'm putting into growing the business. It's encouraging to know that early losses are normal and expected for new businesses, not something to be ashamed of or worried about from a tax perspective. Thanks for sharing your experience - it's exactly what someone like me needs to hear when navigating business taxes for the first time!
0 coins
Dylan Evans
I'm dealing with a very similar situation and this discussion has been incredibly helpful! I started a small online tutoring business this year while working my regular teaching job. Between setting up my website, buying equipment, and getting certified in additional subjects, I spent about $3,200 but only earned $900 in revenue. I was really worried that trying to deduct this $2,300 loss would be a red flag to the IRS, but reading everyone's experiences here has given me much more confidence. It sounds like as long as I'm genuinely trying to build a profitable business (which I am - I've been actively marketing and already have several students lined up for next year), then these startup losses are completely legitimate. One thing I'm curious about - does anyone know if there are specific documentation requirements for proving business intent? I've been keeping all my receipts and tracking my time, but I want to make sure I'm covering all the bases in case of an audit. Thanks to everyone who shared their experiences - it's so valuable to hear from people who've actually been through this process!
0 coins
GalaxyGlider
•Great question about documentation! From what I've learned, the IRS doesn't require specific forms to prove business intent, but having good records definitely helps. Here are some things that strengthen your case: 1. **Business plan or written goals** - Even something simple showing your strategy for profitability 2. **Separate business bank account** - Keeps personal and business expenses clearly divided 3. **Professional development records** - Like your certification costs, which show you're investing in expertise 4. **Marketing materials and customer records** - Proves you're actively seeking clients 5. **Time logs** - Shows the effort you're putting in (sounds like you're already doing this!) The fact that you have students lined up for next year is actually perfect evidence of business intent and growth trajectory. Your tutoring business sounds completely legitimate - educational services have natural startup costs and often take time to build a client base. One tip: consider keeping a simple business journal noting major activities, client meetings, marketing efforts, etc. It doesn't have to be daily, but having a record of your business activities can be really helpful if you ever need to demonstrate your profit motive to the IRS. You're clearly approaching this the right way - those startup losses are totally normal and deductible!
0 coins