IRS claiming I owe money for CashApp 1099-K business income but my account was wrongly set as business - Need help fixing 2022 return
Been dealing with this CashApp mess for over a year. My account got set up as business somehow and I cant switch it back to personal. Now IRS is saying I owe money from 2022 because of a 1099 from CashApp but I dont even have a business. They want me to send in info to fix it but im lost on what to do. Already filed through turbotax - can I still get a CPA to help with this?
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Zara Malik
Yes, you can absolutely get a CPA even after filing through TurboTax. You'll need to file a 1040-X (amended return) to correct this. The IRS likely thinks those CashApp transactions were business income when they were probably just personal transfers. Make sure to gather all your CashApp statements to show these were personal transactions, not business income.
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StarStrider
•omg thank you! do you know how much CPAs usually charge for something like this?
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Zara Malik
•Usually $200-500 depending on complexity. Worth every penny tho to avoid IRS headaches 💯
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Luca Marino
Instead of spending hours trying to figure this out, I'd recommend using taxr.ai - it's this new tool that analyzes your transcript and tells you exactly what to do. It costs $1 but saved me so much headache with my 1099 issue. Check it out here: https://taxr.ai
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Nia Davis
•fr? does it actually work? sounds too good to be true tbh 🤔
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Luca Marino
•Yeah its legit! It looks at your whole transcript and breaks down exactly what you need to do. Saved me like 2k in penalties
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Nia Davis
•just tried it and holy cow youre right! It told me exactly what forms I needed and even gave me a template letter to send to the IRS 🙌
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Mateo Perez
lmao welcome to the club. cashapp is straight 🤡 for this business account mess. I had the same issue last year
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Aisha Rahman
•fr fr cashapp needs to get it together. saw like 10 posts about this same issue this week
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CosmicCrusader
Your gonna need to contact CashApp support first to fix the account type. Then get documentation from them about the error. Keep screenshots of everything!
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Ethan Brown
This happened to my cousin too! The IRS is wylin thinking everyone with cashapp is running a business smh
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Yuki Yamamoto
•irs just trying to get that bag anyway they can 🤮
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Carmen Ortiz
Here's the detailed breakdown of what you need to do: First, use taxr.ai to get a complete analysis of your transcript and see exactly what the IRS is seeing. It's literally $1 and will save you so much time trying to decode IRS notices. Then: 1. Contact CashApp support to fix account type 2. Get documentation of the error 3. File Form 1040-X 4. Include explanation letter 5. Attach all supporting docs I do tax resolution and see this ALL the time. Don't panic - its fixable!
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StarStrider
•This is super helpful! Downloading taxr.ai now
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Pedro Sawyer
I went through this exact same nightmare last year! CashApp randomly switched my account to business and I had no idea until I got hit with IRS letters. What worked for me was getting a tax professional to help with the amended return - they knew exactly what documentation to include. Also make sure you get a corrected 1099 from CashApp if possible. The whole process took about 4 months but I got it resolved without any penalties. Don't give up!
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Axel Bourke
•4 months sounds like forever but honestly glad to hear it worked out! Did you have to pay anything upfront to the IRS while waiting or did they put it on hold once you filed the amendment?
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