I want to add another important consideration that hasn't been mentioned yet - the timing of when you recognize your trading gains and losses for tax purposes. Since you mentioned you've been "tracking everything meticulously," make sure you understand that for tax purposes, you generally recognize gains and losses when you close positions, not when you open them. This is crucial for your quarterly estimated tax planning because if you have large unrealized gains in open positions, you won't owe taxes on those until you actually close them. Conversely, if you have unrealized losses, you can't use them to offset your tax liability until you realize them. Given that you're 8 months into the year with $78K in profits, I'd also suggest setting aside a separate "tax account" going forward - maybe 35-40% of each month's realized profits - so you're not scrambling to find cash for tax payments. Many full-time traders get caught off guard by the cash flow impact of quarterly payments, especially if they've reinvested their profits back into trading. One more tip: keep detailed records of all your trading-related expenses (platform fees, data subscriptions, home office costs, etc.) as these can significantly reduce your taxable income, whether you qualify for trader tax status or not.

Jumping in as someone who went through this exact transition from corporate job to full-time trading last year! A few additional points that might help: 1. **Safe Harbor Rule**: Since you mentioned this is new territory, the "safe harbor" rule is your best friend. If you pay 100% of last year's total tax liability spread across four quarterly payments (110% if your prior year AGI was over $150K), you're protected from underpayment penalties regardless of how much you make this year. This gives you peace of mind while you figure out your trading tax situation. 2. **Self-Employment Tax Nuance**: Be careful about that 14.13% self-employment tax calculation mentioned earlier. If you qualify for trader tax status, your trading profits might NOT be subject to self-employment tax - they'd be treated as capital gains instead. This could save you thousands. But if you're just considered an "investor" (even an active one), then yes, you might owe SE tax. 3. **Quarterly Payment Timing**: Don't stress too much about perfect quarterly amounts. I made uneven payments my first year based on actual performance each quarter, and it worked fine. The key is making sure your total payments for the year meet the safe harbor threshold. Since you're already 8 months in with solid profits, I'd calculate 25% of last year's total tax liability and make that payment for Q3 (September 15), then reassess for Q4 based on how the rest of the year goes. This approach has saved me from both penalties and overpaying. Good luck with the transition - it's definitely manageable once you get the system down!

I'm dealing with a very similar situation right now! Just received my Letter 6201 last week showing my 2022 return as "not on file" even though I definitely e-filed through TurboTax. Reading through all these experiences has been incredibly reassuring - I had no idea these COVID processing backlogs were still affecting so many people. The advice about finding your e-file confirmation and asking the IRS to check specific databases like "UNPROCESSED RETURNS" and "CORRESPONDENCE INVENTORY" is invaluable. I just found my TurboTax acceptance email with the confirmation number and electronic filing date, so I'm armed with that documentation when I call. What's really encouraging is seeing multiple people confirm that these processing issues typically don't affect future refunds, especially when your Letter 6201 shows no outstanding debt like yours does. The fact that your other years show as "timely filed" actually works in your favor - it clearly demonstrates this is a processing error rather than a compliance issue. @Laila Prince @Leo Simmons @Anastasia Kozlov - thank you all for sharing those specific strategies about which databases to ask them to search and the importance of being persistent with different reps. This community support has been amazing! Going to call tomorrow morning with all this new knowledge. Will definitely update this thread with how it goes. Stay strong everyone - sounds like these issues are very resolvable with the right approach! 🙏

I'm going through the exact same thing! Just got my Letter 6201 yesterday and it shows my 2020 return as "not on file" even though I definitely filed it through H&R Block. This thread has been such a lifesaver - I had no idea these COVID processing backlogs were still affecting so many people years later. What really gives me hope is seeing all these success stories where people found their "missing" returns stuck in various IRS databases. @Laila Prince's advice about asking them to check "UNPROCESSED RETURNS" and "CORRESPONDENCE INVENTORY" is exactly what I needed to know. And @Leo Simmons confirming that these processing issues don't typically affect future refunds is huge relief! I just dug through my emails and found my H&R Block e-file confirmation from 2020 with the acceptance number, so I'm ready to call tomorrow armed with that documentation. The pattern I'm seeing from all the successful resolutions is persistence and knowing the right questions to ask. Thanks to everyone who shared their experiences here - it's amazing how this community comes together to help each other navigate these frustrating IRS issues! Will definitely update with how my call goes 🙏

Since nobody mentioned this yet - you should seriously consider whether your LLC is being treated as a corporation or disregarded entity for US tax purposes. If you never filed Form 8832 to elect corporate treatment, a single-member foreign-owned LLC is by default treated as a disregarded entity. This distinction matters because filing requirements are different. A disregarded entity owned by a foreign person still needs to file Form 5472, but attached to a pro forma Form 1120 (not a full tax return). Understanding this might help you file the correct forms now.

I went through almost the exact same situation with my Delaware LLC that I abandoned after formation. The stress and panic you're feeling is completely understandable, but there is hope! Here's what I learned from my experience: Yes, you do need to file Form 5472 and a pro forma Form 1120 for each year, even with zero activity. The key is acting quickly now and putting together a strong reasonable cause statement. For your reasonable cause letter, emphasize these points: 1) You're a non-US resident who was genuinely unaware of the filing requirements, 2) The LLC had absolutely no business activity or transactions, 3) You're coming forward voluntarily to correct the situation, and 4) This was an honest mistake, not willful non-compliance. I filed my delinquent returns with detailed reasonable cause statements and requested penalty abatement. While I can't guarantee your outcome will be the same, the IRS did accept my reasonable cause and waived most of the penalties. The fact that your LLC truly had no activity works strongly in your favor. Don't let the $25,000 penalty amount scare you into paralysis - that's the maximum statutory penalty, but the IRS has discretion to reduce or waive penalties when there's reasonable cause. Get those returns filed ASAP with solid documentation of your circumstances.

As someone who's been through multiple deployments and dealt with complicated military tax situations, I'd strongly echo what others have said about avoiding those personal equipment deductions. The IRS is pretty strict about what constitutes a legitimate business expense versus personal equipment. One thing I'd add - if you're looking for ways to maximize your tax benefits as military, focus on the things that are clearly allowed: the moving expense deductions (which are still available for military even after the tax law changes), making sure you're properly excluding combat pay when beneficial, and taking advantage of any state-specific military benefits in your home state. Also, consider contributing to a TSP (Thrift Savings Plan) if you're not already maxing it out. The tax benefits there are substantial and completely legitimate. It's a much better use of your money than risking an audit over equipment that likely won't qualify anyway. The "ask for forgiveness rather than permission" approach with the IRS is definitely not recommended - they don't tend to be very forgiving, and military personnel can face additional scrutiny if there are issues with their taxes.

Active duty Air Force here - I've been dealing with military taxes for about 8 years now and want to emphasize what others have said about being very careful with equipment deductions. The IRS has gotten much stricter about military deductions since the Tax Cuts and Jobs Act. I learned this the hard way when I tried to deduct some tactical gear a few years back, thinking it was job-related. Got a letter from the IRS asking for documentation showing it was "ordinary and necessary" for my military duties. Since I couldn't prove the military required me to purchase it personally (versus issuing it), they disallowed the deduction plus interest. For your specific situation with the pistols and hockey gear - these would almost certainly be classified as personal expenses. The IRS doesn't care if your personal firearms use the same ammo as your duty weapon, or if hockey keeps you in shape for PT tests. They look at whether the military specifically required YOU to purchase these items at your own expense. Focus on the guaranteed benefits instead: TSP contributions, legitimate PCS moving expenses, and if you deploy, make sure you're handling combat pay exclusion correctly. These are worth way more than trying to squeeze deductions out of personal equipment purchases. The audit risk just isn't worth it, especially when there are plenty of legitimate military tax benefits you can take advantage of.

One thing I'd add to the excellent advice already given is to make sure you have all your documentation organized before filing. For a business vehicle sale, you'll need: 1. Original purchase receipt showing the $62k cost 2. Your tax return from the year you bought the SUV to see what depreciation you claimed 3. Sale documentation showing the $39k sale price 4. Mileage logs if you have them (though since it was 100% business use, this is less critical) Also, since you mentioned this was for an executive transportation service, make sure you didn't claim any personal use that would complicate the calculation. The fact that you used it 100% for business actually simplifies things - you just need to get the depreciation basis calculation right. If you're still lost after reviewing your prior year return, don't hesitate to get professional help. A mistake on Form 4797 can be costly, especially if the IRS determines you under-reported income from the sale. Better to pay a CPA for an hour of their time than deal with penalties and interest later.

I went through this exact same situation when I closed my consulting business and sold my company car. The key thing that tripped me up initially was understanding that even though I had a "loss" on paper (bought for $62k, sold for $39k), the tax treatment depends entirely on how much depreciation I had claimed. In my case, I had taken Section 179 expensing for most of the vehicle cost in the purchase year, which meant my adjusted basis was very low. When I sold the car, I actually had to report most of the sale proceeds as ordinary income due to depreciation recapture - the opposite of what I expected! The calculation isn't intuitive at all. Here's what helped me: I gathered my original purchase documents, pulled my tax return from the year I bought the vehicle, and made a simple chart showing: - Original cost: $62,000 - Total depreciation claimed: $XX,XXX - Adjusted basis: $62,000 - depreciation = $X,XXX - Sale price: $39,000 - Gain/Loss: $39,000 - adjusted basis TurboTax should walk you through this on Form 4797, but you absolutely need to know your depreciation history first. If you're uncertain about what you claimed originally, it's worth getting help from a tax pro. I initially tried to wing it and almost made a $15,000 error in my favor that would have definitely triggered an audit.