This thread has been incredibly helpful! As someone who's been putting off organizing my tax records, I'm realizing I need to get serious about this before tax season hits. One question I haven't seen addressed yet - what about receipts from mobile payment apps like Venmo, PayPal, or Cash App? I use these for a lot of business expenses, especially when paying contractors or splitting costs with business partners. The transaction history shows the amount and date, but often doesn't have detailed descriptions of what was purchased. Should I be taking screenshots of these transactions and adding my own notes about what they were for? Or is the basic transaction record from the app sufficient as long as I can explain the business purpose? Also, for anyone who mentioned using receipt scanning apps - do you scan receipts immediately or do you have a system where you batch them weekly/monthly? I'm trying to figure out the most realistic approach that I'll actually stick to!

Great discussion everyone! I wanted to add something that might help with organization - I've been using a simple spreadsheet to track all my business expenses in real-time, with columns for date, vendor, amount, category, payment method, and receipt location (physical file vs digital folder). This has been a lifesaver because even if I lose a receipt, I have a record of when and where the expense occurred, which makes it much easier to request duplicate receipts from vendors if needed. Plus, during my audit preparation, I could quickly filter by category or date range to pull together related documentation. One thing I learned the hard way - if you're claiming home office deductions, take photos of your office space and keep records of when you set it up. The IRS wanted to see that my home office was used "regularly and exclusively" for business, and having photos with timestamps really helped establish that timeline. Also, for anyone worried about digital storage - I keep everything in Google Drive with a shared folder that my accountant can access. That way if something happens to me or my computer, my tax prep person can still access all the documentation. Just make sure you trust whoever you're sharing access with!

I just completed my ID.me verification yesterday and this entire thread has been a lifesaver! Reading through everyone's experiences really helps set realistic expectations for what's ahead. Like so many others here, I had multiple failed attempts with the facial recognition - it's almost like that's just part of the process at this point. Got the confirmation screen finally, so now I'm settling in for the waiting game. Based on all the timelines shared here, it sounds like I should expect anywhere from 3-9 weeks, with most people falling in that 4-6 week range. I'll definitely start checking my transcript on Friday mornings like everyone suggests - seems like that's when the real updates happen. It's reassuring to know that the 570 hold code is normal and that weeks of no movement doesn't mean something's wrong. Thanks to everyone who took the time to share their experiences and timelines - it makes this whole process feel much less overwhelming!

I completed my ID.me verification about 6 weeks ago and wanted to provide an update for everyone still waiting. After dealing with the usual photo upload issues (seriously, why is that system so problematic?), I finally got through the verification successfully. Like many of you, I started checking my transcript every Friday morning based on advice from this community. I saw the 570 hold code appear about 10 days after verification, and it stayed there for what felt like forever - about 4.5 weeks. Then last Friday morning, boom - 571 release code and 846 refund issued date all appeared at once! My refund is scheduled to hit my account this Wednesday. The waiting was absolutely brutal, especially when dealing with those medical bills that just keep coming. But I can confirm that no movement for weeks doesn't mean something's wrong - it's just the IRS working through their massive backlog. For anyone just starting this journey, that Friday morning transcript check really is the key to staying sane during the process. Hang in there everyone - your turn is coming!

Has anyone run into Zelle transfer limits when doing larger amounts? I tried to move $8k once and my bank limited me to $3500 per day.

One thing to keep in mind is that while these transfers aren't taxable, you should still keep good records of them. I learned this the hard way when the IRS questioned some large deposits in my account during an audit a few years back. Even though they were just transfers from my other bank, I had to provide documentation proving both accounts were mine and that the money wasn't new income. I'd recommend keeping screenshots of both accounts showing your name, and maybe even a simple spreadsheet tracking the transfer dates and amounts. It's probably overkill, but it'll save you headaches if anyone ever questions where that money came from. The IRS agent told me that clear documentation makes these situations resolve much faster.

Just make sure you're keeping really detailed records of all your ESPP transactions!!! I got audited last year because I messed up reporting my ESPP sales and it was a nightmare 😩 I didn't have proper documentation of my purchase prices and discount amounts for each lot of shares, and had to reconstruct everything from scratch. Now I keep a spreadsheet with every purchase date, offering date, discount amount, purchase price, fair market value, and sale information.

For handling ESPP sales with multiple lots, I've found that FreeTaxUSA actually handles these transactions much better than TurboTax. It has a more intuitive interface for entering the ordinary income portion separately from the capital gains/losses. The key is to make sure you're reporting each lot sale correctly: 1. The discount portion goes on your W-2 as ordinary income (your employer should handle this) 2. The capital gain/loss goes on Schedule D, using the fair market value on purchase date as your cost basis (NOT the discounted price you paid) If you're still having trouble, consider using Form 8949 to provide additional details for each transaction. The IRS wants to see that you understand the difference between the compensation element (discount) and the investment element (capital gain/loss). And definitely keep those detailed records like StormChaser mentioned - having everything documented by lot makes tax time so much easier!

Has anyone used tax software like QuickBooks or TaxAct for this? I have a similar situation with my S-Corp and wondering if the software handles these unrealized losses automatically or if I need to make manual adjustments.

I went through this exact same situation with my S-Corp last year and it was definitely confusing at first. The advice about Schedule M-1 line 5 is spot on - that's exactly where the unrealized loss goes. One thing I'd add is to make sure you document everything clearly in case of an audit. I kept a simple spreadsheet showing the original purchase price ($1,200), year-end fair market value ($550), and the calculation of the unrealized loss ($650). This helps if you ever need to explain the M-1 adjustment. Also, don't forget that when you eventually sell these stocks, you'll need to reverse this M-1 adjustment since the actual gain/loss will be recognized for tax purposes at that point. The unrealized loss adjustment is temporary - it just reconciles the timing difference between book and tax accounting. Your balance sheet approach sounds correct too - showing the securities at fair market value ($550) with the unrealized loss flowing through to reconcile your retained earnings. It all balances out once you get the M-1 schedule right.