Great thread with lots of helpful information! I just completed my Form 706NA payment process last week and wanted to share a few additional tips that might help others: 1. Double-check your bank account information before submitting - I made a typo in my routing number initially and had to start over. The IRS system caught it during verification, but it delayed my payment by several days. 2. If you're making a large payment (like the $34,500 mentioned in the original post), some banks have daily ACH limits that might prevent the transaction from going through. I had to call my bank to temporarily increase my limit for the estate tax payment. 3. Keep multiple copies of your confirmation page and save it as a PDF. I printed three copies and emailed the PDF to myself as backup. The confirmation number is crucial if you ever need to trace the payment. The whole process was actually smoother than I expected once I figured out the right options to select. The key is just being very careful about the tax year selection (as Vanessa mentioned) and making sure all your information is exactly correct before hitting submit.

I went through this exact process about 6 months ago and can confirm that the Direct Pay method works well for Form 706NA. One thing that really helped me was calling the IRS taxpayer assistance line beforehand to confirm I was selecting the right options - they verified that using "Form 706" in the system covers both regular 706 and 706NA filings. A few additional tips from my experience: - Make sure you have the estate's EIN ready before starting the payment process - The system will ask for the "primary taxpayer" - use the decedent's name exactly as it appears on the 706NA form - If you're making the payment close to the due date, consider doing it in the morning rather than late at night to avoid any potential system maintenance windows The confirmation email came through within about 10 minutes, and I was able to track the payment status through my bank. The whole process took less than 15 minutes once I had all the information ready. Don't stress too much about it - the IRS payment system is actually pretty straightforward once you know which buttons to click!

Just want to add that I had a similar massive refund one year ($18k when I normally got $1-2k) and I filed it without questioning because, hey, free money right? BIG MISTAKE. Two years later I got hit with an audit, had to pay back the entire amount PLUS penalties and interest. Ended up owing over $23k and it destroyed my finances for years. Don't mess with the IRS. If something seems fishy, it probably is.

This is exactly why I always tell people to be extremely cautious with new tax preparers, especially when they promise unusually large refunds. What you're describing sounds like classic "ghost preparation" tactics where preparers manufacture deductions and credits to inflate refunds. The -$35,000 "additional income" combined with $30,000 in credits is a huge red flag. These numbers suggest your preparer may be claiming fake business losses or inappropriate refundable credits like the Earned Income Tax Credit that you don't actually qualify for. My advice: DO NOT file this return. Get copies of everything your preparer did and take it to a reputable CPA or enrolled agent for a second opinion. Ask them to explain every single line item that's different from your previous returns. Also document everything about your interactions with this preparer - you may need it if you decide to report them to the IRS. The fact that she's giving you conflicting refund amounts ($25k vs $35k) is another major warning sign. Better to get a legitimate smaller refund than deal with years of IRS problems, penalties, and having to pay back fraudulent refunds with interest.

The actual stats on audit rates might make you feel better. For small Schedule C filers (under $100k), the audit rate is around 0.9%. Even with multiple years of losses, unless you have other major red flags, your chances remain relatively low. Make sure you can document that your expenses were legitimate business costs, not personal expenses, and you should be okay.

Has anyone here actually been audited for a small business with losses? I'd love to hear a firsthand experience about what happened and how it went.

WARNING: Be careful about reasonable cause. My husband tried this last year for his consulting business and it got REJECTED. He had to file as a sole prop for half the year and then as an S-corp, which meant TWO different tax returns and a ton of accounting headaches. The IRS is getting stricter about these late elections. Make sure your reasonable cause is actually reasonable and not just "I didn't know about it." We learned the hard way that "I was busy with client work" isn't good enough. If you're serious about making this work, talk to an actual tax pro who specializes in business formation, not just random internet advice.

I went through this exact situation 2 years ago as a freelance web developer. Here's what I wish someone had told me upfront: The timing is crucial, but you have more flexibility than you might think. You can form your LLC in August and still get S-corp treatment for your entire 2023 income, BUT you need to act fast once the LLC is formed. My recommendation: Form the LLC immediately in August, get your EIN the same day (you can do this online), then file Form 2553 within 2-3 weeks. Even if you're technically "late" by a few days, a simple reasonable cause statement explaining you're a first-time business owner unfamiliar with the election deadlines will likely be accepted. The key advantage is that once approved, you'll file a single 1120-S for the entire year instead of splitting between Schedule C and S-corp returns. This saves you significant accounting complexity and costs. One important note: Make sure you have reasonable justification for the salary vs. distribution split once you're an S-corp. The IRS expects you to pay yourself a "reasonable" salary for the work you do, with the remaining profits taken as distributions (which aren't subject to self-employment tax). Don't overthink this - thousands of freelancers make this transition successfully every year. Just don't wait until December to start the process!

Just wanted to add some perspective as someone who's been doing gig work for a while - the tax situation isn't as scary as it seems once you get organized! The key is treating this like a real business from day one. I use a simple spreadsheet to track my daily earnings, miles driven, and any expenses. At the end of each week, I calculate roughly 30% of my profit and transfer it to a separate "tax savings" account. For tracking mileage, I highly recommend using an app like Stride or MileIQ that automatically tracks your drives. Manual tracking gets tedious and you'll inevitably forget to log trips. One thing that surprised me: even though you're paying self-employment tax (which feels like a lot), you're also earning Social Security credits that count toward your future benefits. So it's not just money disappearing - you're building toward your retirement too. The $600 threshold just determines whether DoorDash sends you a 1099 form, but you're technically required to report ALL income regardless of whether you get a form. Keep good records and you'll be fine!

As someone who's been dashing for about 8 months, I'd say it's definitely worth it if you approach it right from the start. Here's what I wish someone had told me when I was at your stage: First, don't stress too much about the $600 threshold - others have explained it well, but just know you're still a ways from hitting it based on your current earnings. What I found most helpful was setting up systems early: 1. Download a mileage tracking app immediately (I use Stride - it's free and designed for gig workers) 2. Open a separate savings account just for taxes and transfer 25-30% of your weekly profit there 3. Keep a simple log of any equipment you buy (phone mount, insulated bags, etc.) The tax situation seems overwhelming at first, but it's really manageable once you get organized. I actually ended up owing less than I expected because the mileage deduction is pretty generous - I drive about 70% of my total earnings in deductible miles. One tip: don't just focus on gross earnings when deciding if it's "worth it." Track your profit after expenses for a few weeks to see your real hourly rate. That'll help you decide if you want to continue and which times/areas are most profitable for you. You're smart to think about this stuff early rather than scrambling at tax time like a lot of people do!