r/taxhelp

I filed my itr through someone who i am not sure now is even a ca, she got me full 3l + refund but now i got this notice, and she has blocked me from everywhere.

I took advice from a family ca and he is saying that best chance is to avoid penalties and we should wait it out and shouldn’t reply to notices since there are no proofs of the filed exemptions, and half cooked receipts can be harmful and would put us in more trouble.

I am really not sure what we can do here and what are the options now. Can someone please help here

Disclaimer: I know you should never cash the 401k. That you're better off declaring bankruptcy and keeping it safe, that there's a penalty—all the stuff, I promise. This is just hypothetical. If it helps I am in the US in New York State.

Let's say I wanted to quit my job and cash my 401k. To avoid sliding into a higher tax bracket (for the portion above my current bracket) because of the cashout, would the best move be to:

• quit job at end of the year
• cash 401k at beginning of new year so that my only income so far that year is the 401k, thus keeping the majority of my income that year in a lower tax bracket?

For this hypothetical assume my only income that year will be cashing the 401k.

Am I thinking about this the right way? (yes I know I shouldn't even think about it at all, let me dream)

Needing fair input here for, quite frankly a tax situation I never dealt with before. A former employer (well known temp agency) failed to withhold tax for 2025, a few months ago I received a letter from the IRS stating I owed $1300 due to said former employers failure to withhold. Further investigation revealed said employer didn’t verify info on W-4 before sending to IRS, but said nothing.

Their tax compliance dept has said they are free of wrongdoing, but I‘m calling that BS if so much tax was not withheld. Yes, I filed an extension to pay the IRS by December which will be closer to $1600. Since this debt is largely the screwup of the employer, I’ve considered pursuing them to pony up at least half of what is owed in back taxes, and creating undue financial hardship.

How can this be pursued on the tax end of things?

Hello r/taxhelp! First time posting, so not sure if this question has been asked and answered frequently in the past.

I’m a classical musician, and take gigs from time to time. It’s never been much. I have a full time job in arts management, it occasionally took gigs for fun, extra money, etc. As a 1099, I’d make no more than like $3-$4000 per year as a contractor. This was never a big deal. The money I’d owe would just come out of the refund my wife and I would receive.

Well, happily I just took a position as a conductor! I’ll be starting at $55,000 per year, but as a 1099. Doing some basic research, I can tell the tax implications will be pretty severe. I was wondering if there are any interesting routes I could pursue to help shelter some of the tax burden. I’ve dumped this question into an AI and it gave me a few options like a Solo 401k, HYSAs, paying tax quarterly, etc.

Any other ideas/pitfalls/creative routes to take.

Also, and this seemed a bit bizarre, the treasurer of the org said we could convert this job into a W2 position. Healthcare is already provided by my arts management job, so that;s already taken care of. Would it be burdensome to covert this position to a W2 for my treasurer? Should I pursue this route?

I'm looking to get in good standing and get a payment plan that I can afford. If possible I'd like some penalty abatements and a settlement, however I am understanding if it's not possible. If I can get mercy than it'll help me get back in good standing faster but I realize my obligations and consequences.

I've avoided filing for several years. The IRS sent a final notice recently from a SFR they did on 2019. That amount due with the penalties and interest is 8k. I didn't withhold enough so I will owe. When I contacted the IRS they gave some protected amounts I'll owe for last five years. If i recall correctly it was in the range of 2-3k/yr for all but one year, which was 8k. I think I figured its about 24k total. But that's without the fees and interest.

I've called around to some local CPA and Enrolled Agents. I haven't had much luck getting in contact with anyone. I've also called some tax relief hotlines. What ive been told was a local company needed 500 retainer. 2OO-300 an hour and 500 for each return. So thats a few grand out the gate and who knows how much to work on abatements and settlement even if that's possible. I know there's no guarantee. But at least a peace of mind with a local professional. The national tax relief was 5-8k. And that's for everything, whatever that may entail.

I don't known what to do at this point. One guy advised I could just file them myself. Im not opposed to that idea and even try to work a payment agreement myself. I just want the benefit of doing it right and explore the right avenues.

I don't know if I can afford the payments they might offer. And understand they might scrutinize my earnings vs expenses in order to decide. I don't know if I'll qualify for any breaks or extended term.

I'm overwhelmed with it all but determined to get this behind me. Any advice how to proceed. I welcome any help and will answer any questions to help for clarity.

Looking for views from tax professionals/people who have dealt with a similar issue.

Facts:
AY 2024-25: I had no income under the head PGBP, so I filed ITR-2.
Before filing the return, I filed Form 10-IEA (Opting Out) on 20-Jul-2024 for AY 2024-25. The form was successfully e-verified and an acknowledgement was generated.
AY 2025-26: I had business income only because of F&O trading loss (non-speculative business loss) and a small intraday speculative profit, so I filed ITR-3 within the due date.
In the ITR-3, I specifically selected:
Form 10-IEA already filed in AY 2024-25.
Mentioned the acknowledgement number and filing date.
Selected “Continue to opt out of the new tax regime.”
Despite this, CPC processed my return under the new tax regime, denied all old regime deductions/exemptions, converted my claimed refund into a demand, and raised a demand of about ₹33.5k (overall impact ~₹1 lakh including refund).

Earlier, CPC had issued an e-proceeding seeking clarification regarding Form 10-IEA. I responded explaining that Form 10-IEA had already been filed, but the final 143(1) intimation still applies the new regime.
My questions are:

1. Has anyone seen this exact issue before?
2. Does filing Form 10-IEA in a year where there was no PGBP make it invalid when business income first arises in the following year?
3. Is this more likely to be a CPC processing issue or a legal interpretation?

Would you recommend:

1. Rectification u/s 154,
2. Direct appeal before CIT(A), or
3. Both (to protect limitation)?
   Are there any CBDT circulars, FAQs, tribunal rulings or case laws on this specific fact pattern?
   Would really appreciate views from anyone who has handled a similar matter.

I m looking to download the 2018 tax return I filed with TurboTax online. On the website, it says that I can only go back upto 7 years to download the filed return. Please let me know if these is an alternative to get the 2018 return I filed. Thanks!

I understand that getting an IP PIN yearly from the IRS would protect us from federal tax fraud but what about State Tax fraud?

Is there anything we can do to protect ourselves? Or would a rejected federal tax return also mean rejected state tax?

Thank you

On 6/10 I filed an amendment for 2024 which resulted in an extra $4100 (I know there will be additional penalties and interest). The amendment is still processing and I plan to set up an installment agreement for about 12 months. When I was reviving my transcript I saw a small 1099 that I missed which will result in about $400 additional taxes.

I know that I will need to file a second amendment when the first finishes processing but my question is, what happens to my installment agreement? I know that any new balance will cause it to default but will I have the opportunity to modify my current agreement before that happens?

I know a cp523 will eventually be sent out if I don’t pay the balance, but will I have time to modify the agreement before this letter is generated?

I was off work travelling for a very large portion of this financial year. I recently returned to Australia and found work on contract (day rates). I am already working but still negotiating the terms of my deal. Is there any reason I should not negotiate a significant signing bonus to be paid this financial year?

As I understand it (from current research / bonuses I have received in the past), bonuses are assessed as taxable income come EOFY the same as salary. The only rule I've found is that you cannot intentionally defer a bonus to a later date; absolutely nothing about bringing one forward.

I really appreciate any advice you can give me!

I am 66 and my spouse is 62 and neither of us are collecting our benefits. My FRA is $3880 and my spouse’s FRA is $1949. I may not be accurate in my assumptions but I was hoping my spouse could take Social Security now at $1388 per month, and when I take Social Security at 67 (and collect $3880) my spouse would be eligible for the spousal excess or bump equivalent (a several hundred dollar a month increase). From my limited understanding of how this all works, Social Security compares our FRAs, and then calculates 50% of my FRA, and if it is 0 or less than my spouse’s FRA, my spouse would not be eligible. In our case, this calculation results in a negative $9 meaning the spousal excess will not trigger. Am I understanding this correctly and can anything be done (absent checking for errors on employment dates, etc) to move from - $9 dollars to greater than $0 so the spousal excess will kick in? Any other thoughts? Thanks in advance, I really appreciate it!

https://preview.redd.it/bleaefou1x9h1.png?width=730&format=png&auto=webp&s=e730b759f49138b05ad0bc875a7bc26309cffbe0

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I have been working with TAS via my congressman from May 1st and originally I had W2G and my 1099-R that weren't showing up and after TAS requested these and sending the same to TAS everything is showing up correctly of 5 weeks ago, but the refund is still stuck in 971 code.

Latest response I received from Congressman on my refund status as of last Thursday:

👀 I have reviewed the documents and believe they are sufficient along with the previously provided W2-G supporting documents. I have gone ahead and submitted my request to have the refund released. I will let you know if I receive any kind of pushback from the operating division. I will follow up again no later than July 21

I double checked all my wage transcripts and realized that my tax CPA didn't check the Digital asset transactions check box but when he calculated the aggregate losses and reported corrected losses, even if IRS considers these as proceeds, this will not affect my refund amt as losses in trading were more than this amount. Schedule D lines 2 and 3 were blank, and the digital-assets question on the 1040 was marked "No." Do I need to do anything related to this by sending an updated 8849 form to my TAS contact or just hold on to IRS to determine and issue a refund and refile the 8849.. I haven't got anything related to this from TAS advocate yet, but this is bugging me on the back of mind that this might be the holding issue for the IRS operations team.. Any one faced similar situation and any thoughts on next course of action here?

This year I made some sports bets on the Draft Kings App and so far I’ve:

Deposited: $5,000
Withdrawn: $6,000
Won: $11,000
Spent: $10,000

I’d for example deposit and wager $100 and then win back $150 total. Then I’d take that $50 of “profit” and use it to make more bets, winning some and losing some. All in all the initial deposit of $100 might result in 80$ in profit at the end of the day at $180 total. This would be over the course of making maybe 10 different bets with some “wins” reaching as high as $250 for example. This is why my “Spent” is recorded as higher than what I’ve deposited.

Come tax time in 2027, I’m seeing that basically I’d need to pay taxes on the full $11,000 in recorded wins even though I only profited $1,000 and deposited $5,000. I’ve used some online calculators and see that this would result in a tax bill of around $3,500. This is way beyond what I’ve technically profited.

My standard deduction is about $16k and job income is $75k. My recorded bets that counted as money that was wagered and lost totals about $2,000.

From what I’m understanding, I’d need to completely forfeit my standard deduction to itemize any of my losses to offset the $11,000 in wins, which doing the math is not worth it for me.

Can anyone confirm if I’m understanding this the right way? Am I screwed and need to plan to set aside $3.5k for tax season in 2027?

**Edit for additional information: I live in Oregon

Running into the same pattern across multiple client files this year. Client invested in a fund, fund's admin handles K-1 preparation, K-1 arrives in May or later, client comes to me with an amended return scenario or an extension-already-filed scenario. Four clients this year, two last year, one the year before. The trajectory is the wrong direction.

The pattern across the four files this year is consistent. Three of the four were funds using one of the SaaS style admins that outsource partnership tax to an external CPA partner. The handoff timing during busy season is where it breaks. The external CPA is doing returns for hundreds of other clients in February and March, the fund's K-1s aren't a priority in that queue, and the timing slips. The fourth file was a fund whose admin runs tax in-house but the admin had hired junior staff who couldn't handle the complexity, which is a different failure mode (staffing) from the SaaS-admin one (handoff timing).

What I'm trying to figure out is whether this is a pre-tax season conversation I should be having with clients before they commit to LP positions. Asking GPs about their admin's K-1 preparation track record feels intrusive but the alternative is amending returns every June. Curious what other tax pros are doing on the front end of client LP commitments, and which admin workflows are still landing K-1s on time.

Hello to anyone that is able to help provide some advice. I moved from NY to NJ March 2025 and had filed my tax return with H&R Block this year.

Amount owed -

NYS - $464.51 (IT - 201)

NYS - $1,208.19

NJS - $3,754.58

IRS - $190.54

The thing is my salary was at that time 77k and I got an annual bonus that was 15k. On my NJ paper work it’s stating that my total wages are 168k which is no where close of what I made.

Originally when I was going back and forth with H&R Block they said that it was the way my job reported it but I went back to the service company that did our W-2 and they said it was correct (I’ll be calling them again tomorrow as I just got all the bills in the mail). They did update everything on their end when I originally moved so they were taking out taxes for both states.

I don’t have any other additional income other than my previous job and did not have any investment accounts. I paid someone separately to look at everything but I don’t really trust what she did and her responses were very obviously AI.

So my question is if this is normal or does it really sound like something is incorrect because I don’t want to continue fighting a battle that is worthless.

I just feel like they are taking advantage and if my salary was 77k why do I owe in total over 5.6k in taxes when they were taking out a great deal of money each check.

I thank you in advance for any responses on this.

Also for more context when I was living in NY I’d get refunds of about 2k so this is very alarming.

Tax year 2025, my husband kept getting paid Disability benefits even though SS was contacted by phone and fax 6 times to please stop sending benefits as he went back to work after bad setback with his cancer. Even filled out all appropriate paperwork at time of return to work. In the end:

He was overpaid in 2025, and had taxes withheld from all checks at time of payments for 10 months.

They did not send letter till year 2026 stating he owed all the 2025 payments back INCLUDING taxes (again) on all of that income, even though he already paid the taxes in once. Said it was their policy.

So now we have paid (example) 4,000 in taxes to them twice, on the same income.

Questions:

1. They claim we will get a form in 2027 stating we paid all the money back including the taxes, but will we actually get all the taxes back? (we always get a federal refund from his normal income so we wouldn’t be in the hole federal wise)
2. Anything else to expect or report in the process when filing next year, or just inputing the 1 form SS should send us that the money was all paid back with the tax info as well will be enough? I don’t want to miss any extra steps or forms in filing with our situation and screw up our taxes.

I'm doing research into how freelancers handle taxes and I keep seeing the same story: someone does everything right, earns good money, and then gets blindsided by a huge tax bill they weren't expecting.

I want to understand what actually happened in those moments.

If this has happened to you, can you tell me:

• What were you doing for work? (Uber, DoorDash, consulting, anything)
• When did you realize something had gone wrong?
• What did you wish someone had told you earlier?

Not selling anything. Not promoting anything. Just genuinely trying to understand this problem so I can build something that prevents it.

Hello I am a tik Tok shop affiliate I just started a few weeks ago. I'm not registered as a business or anything like that on TikTok.

I have made some commissions off of the products I've been posting and I'm wanting to now withdraw. This requires me to fill out the tax form.

I'm wondering what address I should put? If I put the wrong address is it going lock my commissions?

I've been living on the road doing different jobs across the country for the past few years. My address on my driver's license is in a totally different state that I no longer live in.

On top of that I haven't done my taxes in a few years and I don't recall what address I had my taxes sent to last?

In regards to the place I live now, the mailing I address I have is just a PO box. I basically live at a ranch that does not receive normal mail so I have to have a PO box.

Can anyone help me on what I should do? I just really want to avoid having my account locked because the address doesn't match or something. The information on the internet about this seems unclear.