Has anyone tried using a CPA instead of an EA? What's really the difference? My buddy used a CPA for his back taxes and said it worked out fine.

I just want to echo what others have said about not panicking over those unopened IRS letters. I was in a very similar situation - hadn't filed for 3 years and was terrified to even look at the mail from the IRS. One thing I learned is that the IRS actually prefers to work with people who are trying to get compliant rather than those who continue to avoid the issue. When I finally got help, the penalties weren't as catastrophic as I had imagined in my head. For finding an EA in Minneapolis specifically, you might want to check with the Minnesota Society of Enrolled Agents. They often have local chapters that can provide referrals to members in your area who have experience with non-filer cases. Also, don't be afraid to interview a few EAs before choosing one. Most reputable ones will offer a brief consultation to discuss your situation and their approach. Ask specifically about their experience with 4+ years of unfiled returns and what their typical timeline looks like for getting everything resolved. You're taking the right step by seeking help now. The sooner you start, the more options you'll have for payment plans and penalty abatement.

Another thing to check - see if the tax filing site has a physical address and phone number listed. Scammy sites often only have a contact form with no real-world details. And make sure the company has been around for at least a few years!

Great advice from everyone here! I'd also recommend checking if the tax service offers customer support during tax season. Legitimate companies usually have live chat, phone support, or at least detailed FAQ sections. I learned this the hard way when I used a sketchy service a few years back that had zero customer support when I ran into issues. Another red flag to watch for: if they promise unrealistically large refunds or claim they can get you refunds that other services can't. The IRS calculates your refund based on your actual tax situation - no legitimate service can magically increase what you're owed. And definitely avoid any site that asks for upfront payment before you can even see what your return looks like. One more tip: save screenshots of any promises they make about fees or services before you start entering your info. That way you have proof if they try to add surprise charges later.

The good news is you don't owe taxes on moving your own money around, even if PayPal reports it. Since these were transfers between your own accounts with no actual profit, you have zero taxable income from these transactions. When you file your taxes, include a brief explanation (just a paragraph) stating that the 1099-K amounts represent personal transfers between your own accounts with no income realized. Keep your PayPal transaction records and bank statements as backup documentation. The fact that you lost $47 in fees actually helps prove this wasn't a profitable business activity. This situation is becoming more common with the new $600 reporting threshold, so the IRS is getting familiar with these cases. As long as you can document that it was your own money moving in circles, you'll be fine. Don't overthink it - a simple, honest explanation attached to your return should prevent any issues. The IRS matching system flags discrepancies between 1099s and reported income, but providing upfront documentation explaining legitimate reasons for the difference is exactly what tax professionals recommend.

I'm dealing with a very similar situation right now and this thread has been incredibly helpful! I had around $1,800 in PayPal transactions this year that were essentially me paying myself invoices for project expenses - totally legitimate but definitely confusing from a tax perspective. What I've learned from reading everyone's responses is that the key is documentation and clear explanation. I'm planning to attach a simple statement to my return explaining that these PayPal transactions were personal transfers with no profit, and I'm keeping all my transaction records and bank statements showing the money flow. One thing I want to add for anyone else in this situation - make sure you understand the difference between actual business income and just moving money around. If you were doing any legitimate business activity (even if unprofitable), you might need to file differently than if these were purely personal transfers. In my case, these were project-related but not business income, so I'm treating them as personal transfers. The $600 reporting threshold is definitely causing confusion for a lot of people, but it sounds like as long as you can document what actually happened, the IRS understands these situations. Thanks to everyone who shared their experiences - it's really reassuring to know others have dealt with this successfully!

Don't forget that if you had any futures positions open at the end of the year, they're considered "closed" for tax purposes due to the mark-to-market rules, even if you didn't actually close the position. This means any unrealized gains or losses as of December 31st are treated as realized for tax purposes and reported on your 2024 return. Then when you actually close the position in 2025, your basis is adjusted to that December 31st value. This is different from stock trading where unrealized gains/losses aren't taxed until you actually sell.

Great question about futures tax reporting! As someone who went through this exact confusion last year, here are the key points that helped me get it sorted out: 1. **Section 1256 Treatment**: Your E-mini S&P and commodity futures are definitely Section 1256 contracts, so you get the 60/40 tax treatment regardless of holding period. This is actually advantageous since 60% gets long-term capital gains rates. 2. **Forms You'll Need**: TD Ameritrade will send you a 1099-B, but you'll also need to file Form 6781 to properly report the 60/40 split. The totals from Form 6781 then flow to your Schedule D. 3. **Day Trading Doesn't Matter**: Since you're day trading and not holding overnight positions, the mark-to-market rules at year-end won't affect you - all your positions are already closed. 4. **Record Keeping**: Make sure to keep detailed records of all your trades. Sometimes brokers make errors on the 1099-B forms, so having your own records is crucial for verification. One thing that really helped me was organizing all my trade confirmations by month and cross-referencing them with my 1099-B when it arrived. The $32K profit you mentioned should be straightforward to report once you have the proper forms filled out. Consider consulting a tax professional if you're still uncertain - futures taxation can be tricky the first time around.

I think everyone's missing an important point - if you received more than $600 from this company, they are REQUIRED BY LAW to provide a correct 1099-MISC with their TIN. You should report them to the IRS for non-compliance. There's actually a form specifically for this: Form 3949-A.

I went through this exact situation last year with a startup that issued me a 1099-MISC missing their EIN. Here's what worked for me: 1. First, I sent a formal email to their accounting department (and cc'd the CEO) explaining the issue and requesting a corrected form within 10 business days. I kept it professional but firm. 2. When they didn't respond initially, I sent a follow-up certified mail letter with the same request. This got their attention because certified mail creates a paper trail they can't ignore. 3. While waiting for their response, I went ahead and filed my taxes using the information I had. I reported the full $3,750 income on Schedule C and included a note in my records about the missing TIN and my attempts to obtain it. 4. The company eventually sent a corrected 1099-MISC about 3 weeks later, but by then I'd already filed successfully. The key is documenting every attempt you make to contact them - save emails, note phone call dates/times, and keep copies of any letters. The IRS understands that sometimes payers make mistakes, and as long as you report the income accurately and show good faith efforts to get complete documentation, you're in the clear. Don't let this delay your filing - you can always provide additional documentation later if the IRS requests it.