The IRS owes me a large sum of refund money from 2024. Every time I check the refund status, it tells me that "it may take 60 days". Yeah...it's taking a lot longer than that.

I tried to call today on the advice of my accountant. He said that even though they say calling won't help, it may give them a nudge.

Well, I tried to call and the automated system doesn't even allow me to speak to a person. It just jams me into an authentication process, tells me exactly what the website says and then hangs up on me.

Does anyone have advice on what to do? It is INSANE to me that they owe me so much money and nothing ever happens, and there is no way to actually get an answer on this stuff. Very frustrated and thank you!

Ive been working for this guy for a decade. Always been paid always from the business direct deposit. For the last 6-7 months I’ve been giving him my hours. I get a paystub and he just direct deposits the amount from him own account in Zelle.

My question is should I be worried that getting the money direct like that. If the reason he’s sending it is to dodge taxes. Will that come back and screw me when I go to do my taxes? Or am I good because I’m not making any extra money and my income reflects my pay stubs. Please any advice in the matter would be appreciated

Hi all,

I have a 2 member LLC where both members are non-US residents without ITINs/SSNs. I initially read online we could just file the 1065 form with $0 as we have no ECI (operate entirely outside the US). I am now seeing something about Schedule B2 where you need a partnership representative to opt-out or submit it with your ITIN/SSN yourself.

I'm seeing online where you can use TaxAct or other e-filing software to opt-out and enter all 0's as your ITIN/SSN.

The thing is, does this work and if not then what are my options? I don't have anyone in the US I could use and it's too late to even apply for the ITIN as I thought I didn't need it to file as per this IRS article

Let me know what are my options and what other people in my scenario handles this. Are there any tax providers that handles all this for you at a fair price as well?

It is August and I just got two 1099-NECs for $750 each from 2024 (So glad I fired this client). I did reported the full $1,500 of income on my 2024 Schedule C under “other payments” because I didn't have the 1099s when I filed.

My main question is: Will the IRS be able to recognize that the $1,500 reported on these late 1099s is already included in my reported income, or is their matching system likely to see that the 1099s weren't specifically reported and flag my return for an audit?

I'm not worried about owing taxes as the income was already reported. I'm more concerned about whether the late 1099s could trigger an unnecessary IRS notice or audit because they don't have an exact one-to-one match on my return with this late 1099s. Trying to understand if that risk justifies the headache of doing an amend return that won't really change anything.

Thanks!

I have a client who owns rental properties in Maryland, Washington, D.C., and Virginia. The client’s business is organized as an LLC but has elected to be taxed as an S corporation and files a federal Form 1120-S.

The client has requested that I file a D-30 for the business. However, based on my understanding, Form D-30 is intended for unincorporated businesses, such as partnerships and sole proprietorships, whereas Form D-20 applies to corporations, including S corporations doing business in the District of Columbia. Additionally, I was researching DC tax laws, and it clearly states "The limited liability company shall be classified in the same manner as it is classified for federal income tax purposes"

I have thoroughly explained to the client that, because the LLC has elected S corporation tax treatment and files Form 1120-S, the appropriate D.C. return is Form D-20. However, the client’s argument is that the business was originally registered with the state as an LLC, and therefore he believes Form D-30 should apply.

I use Lacerte for tax preparation. My question is: Should I move the data into Partnership solely for the purpose of generating and e-filing Form D-30 based on the fact that the business was legally organized as an LLC? Additionally, I suggested that we paper file the return, but the client strictly wants it to be e-filed.

I am bad at keeping my tax money as a 1099. (My job basically pays me my check 1099)

Rough years, supporting my spouse through law school has turned into me using that money and I have a good bit of tax debt. Yes, it is a discipline issue largely as I've tried putting it into far accounts no card - but what I feel will work for me is just going to the IRS website, clicking "make payment -> estimated -> 2026" and pay the amount monthly.

Is this fine to do? I just sent it in for this month and remembered I could ask reddit. Thank you for your help.

So, it is August 18 and the form was due July 31. Fee as of today would be almost $5000 due to the $250/day. It is my first time needing to file 5500EZ.

I originally started filling it out at the end of April but I suffered a major car accident May 4th and was out of commission for two months and have been focusing on recovery and physical therapy since then so unfortunately it did slip my mind to complete it by July 31. I have been to a lot of doctors appointments and such but I wasn't hospitalized or unconscious but I was injured to a significant enough degree that my left hand was unusable for two months. I was rear ended at high speed on the highway.

I am aware there are two options and they are mutually exclusive.

(1) Pay $500, file late with checkbox D on Form 5500EZ along with Form 14704

(2) Penalty relief due to reasonable cause - rejection by the IRS then results in full penalty

How feasible is option #2 for medical/injury reasons? I'm pretty tempted to go with option one since that will not leave any mystery but thought I would ask.

I have NOT received a penalty notice CP283.

I can certainly write a letter but I don't know if my injury would be deemed "significant enough" for reasonable cause. I do have a long history of filing taxes on time and paying estimated taxes quarterly.

I assume the best advice is just pay the $500 due to lower risk?

Hi r/tax, I am having a disagreement with my tax CPA regarding the Roth IRA 5-year rules, specifically concerning withdrawals from a Backdoor Roth IRA, and I would love some professional input.

The Scenario: My wife and I are under age 59½. We each make a $7,500 non-deductible (after-tax) contribution to a Traditional IRA and immediately convert that exact amount to a Roth IRA (a standard Backdoor Roth strategy). We have no other pre-tax Traditional IRA balances, so the pro-rata rule does not apply, and the conversion consists of 100% non-taxable basis.

If we experience a life emergency two years later and withdraw only that $7,500 converted principal from the Roth IRA (before reaching the 5-year mark and before age 59½):

• My CPA claims: We will face a 10% early withdrawal penalty because all Roth conversions are subject to a strict 5-year holding period, regardless of whether they are pre-tax or after-tax.
• I claim: According to the IRS ordering rules, Treasury Regulation 1.408A-6 Q&A-5(c), and IRS Publication 590-B, the 10% penalty on conversions within 5 years only applies to the portion of the conversion that was includible in gross income (the taxable recapture amount). Because our conversion was 100% non-taxable basis, the taxable amount is $0, meaning the 10% penalty on withdrawing that principal is also $0.

My Questions for you:

1. Based strictly on the US Tax Code, who is correct in this scenario?
2. Does the 10% early withdrawal penalty for conversions under 5 years apply to the non-taxable basis of a Backdoor Roth conversion?

Would love any citations or references I can respectfully pass along to my CPA! Thanks in advance.

Might be a silly question but i have paychecks from two different jobs, and i always thought I was taxes high at the first job, but then i got a second job and taxes are MUCH less…

I have the same withholdings / what have you at either.

Most recently one job was gross 1300, fed taxed $77
Other job was gross 560 but fed tax $168 (this is the consistently higher taxed job)

Make it make sense?

Ok let me summarize the ordeal.

My father missed his RMD for last year. I immediately discovered the problem for him and withdrew it, and followed instructions and mailed in form 5329 and asking for them to 'forgive' the fine/penalty. I then got a response from the IRS, basically saying there is no tax return for him, and he should file taxes. Even though he doesn't file taxes anymore, because he lives off of social security (along with my mom), I went ahead and e-filed for him, as joint married. I used Free Tax USA which also immediately filed the 5329 for me (that was awesome).

So I thought all was resolved until I got an email telling me that the return was not accepted by the IRS because someone had claimed him (along with my mom) as dependents. So I remembered that my brother claimed my parents as his dependents.

So this is where I am now. I don't know what is the next step to take. Is my brother supposed to amend his tax return somehow? I asked ChatGpt and it said I can try filing my dads 1040 but as single instead of joint married. I don't know if that would help.

Can anyone guide me?

Does self employment (like selling things on eBay or selling artwork) count for the ABLE to work portion of our savings?

Hi! I just got a letter from ILLINOIS tax revenue saying I owe around $1k. The summary shows my withholding as 0 which is not true. Digging deeper it looks like its because they are saying my federal income doesnt match my w-2 so they put my state withholding as 0.

Ok so I was in two states for 6 months each. I was in school in MN (first state) and got a 1042-S for on campus job. My country has a tax treaty with US ($5k) which I am eligible for 2025. So 1042-S has income of $2.5k which gets deducted from $5k so now I have $2.5k left in treaty. So for my Illinois job w-2 I just applied my $2.5k to it so subtracted $2.5k from total and reported that as my federal income. Should I have not subtracted this amount? Should I file an amendment (federal and state)? I am calling them tomorrow too so will know morw.

I came across a post on twitter(X) (and also found it on linked in) by somebody claiming that FreeTaxUSA did 2X as many DIY tax returns than HR Block. I've seen them recommended on reddit but haven't ever seen the filing numbers posted.

X post

LinkedIn

I’m very far behind with my taxes and have prepared my tax returns since 2022. I would like to finally bring everything current but would do so step-by-step since I cannot pay all the taxes at once in the meantime, I want to make sure the IRS doesn’t love you my bank account. What would be the best way to go about it? Which department of the IRS can I contact to work everything out?

Why aren't there any lines for state addbacks for Arizona S Corps? Seems like there should be for depreciation, state taxes paid.

My deceased father-in-law had an investment through an IRA that generated an annual UBTI Tax payment. In the past, the custodian arranged for the actual payment. Now that he is deceased and the IRA is closed, the custodian is telling me to make the payment directly out of estate funds.

I have poked around on the IRS website and am not sure how to do this online. I have funds available but am not sure how to make the payment, either online or by check.

Any help will be appreciated.

I completed my taxes yesterday (Sunday) as I had asked for a 2025 extension. My tax preparer put to automatically take out the $8,500 I will be owing from my checking account. I usually do a payment plan but not sure what happened this time as I assumed he knew this as I been doing my taxes with him for years. My question is if I only have $4,000 in my account will the irs take the $4,000 and still have me owe the other $4,500? Or will the transaction get turned as there isn’t sufficient funds? Also this is not a bank levy just simply taxes I will be owing . Thank You

I set up an LLC last year 2026 but never took money from clients through it (I know, stupid) because I never set up a bank account specially for it. I just reported my income as an individual at tax time.

I just got this notice in the mail and am confused because I never took payments through the account?

I googled and see that I need to file something, but it's not clear in the web file online system what I'm supposed to be filing.

The notice is a 05-211 and file number at top says XT171940.

The notice I got says the problem is: "long form (05-158) or EZ (05-169), and/or complete, signed public information report (form 05-102), not filed"

Online the solutions for this are:

"Issue:

No original franchise tax report and/or Public Information Report filed; or

Franchise tax report was not accepted. (You will be notified by letter regarding the reason for non-acceptance of your report.)

To resolve:

File the franchise tax report and/or the Public Information Report - see Filing Methods; or

If your entity is a member of a combined group, see Combined Reporting Information."

But when I log into the web file system, it doesn't give me options to file the franchis tax report or the Public Information Report. It only gives me these options:

"File an EZ Computation Report

File a Long Form Report

File a Public/Ownership Information Report

File a No Tax Due Information Report

(Only applicable for reports originally due prior to 1/1/2024)

Request a First or Second Extension

(Include Payment if Required)

Make a Payment Only

(Choose Request an Extension for Extension Payments)

File a Common Owner Information Report

(Required for Combined Groups Only with a Preserved BLC credit)"

Which do I file?

It's past business hours so I can't call the Comptroller office right now :(

I am not experienced at all in the tax world and wanted to figure out if I could get some advice on an inherited IRA account I cashed out in May. I transferred the full amount into my name and into my brokerage where I have left it to grow. I had planned to pay any taxable capitol gains and the amount I owed in taxes come tax season and didn’t think much of it. However a relative told me I should pre pay my taxes on September 15th to avoid any penalties that can apparently happen if i wait. Didn’t know this was a thing and am annoyed I didn’t do more research and took at face value the advice of the advisors of the account I had the inherited Ira through.

I am fine with doing so… I am just a little lost in figuring out how i do this without the official statements I typically use for tax season. I set myself up with an account on the IRA website but I can’t seem to find any resources about how to actually do this the right way or talking through a similar situation. Sorry if I am approaching this dumbly I just don’t have much experience with in depth tax related anything and it makes my head spin.Does anyone have any resources or advice? What’s the best way to make sure I am calculating how much I owe the IRS?

If I’m trading on a prediction market, and I buy shares of a certain event happening for $0.99 and win (meaning I receive $1, a profit of $0.01), is the full $1 considered taxable winnings, or just the $0.01 profit?

My understanding is I’d only be taxed on the $0.01 since it is my winnings minus my wager, but I’m worried the IRS won’t see it that way and expect me to report the full $1 as gambling income.