Has anyone actually succeeded with this strategy through an audit? I'm seeing lots of theory but wondering if there are success stories when the IRS actually reviews everything.

This is fascinating but also terrifying! I'm a marketing director making $280k and have been considering real estate investing specifically for tax benefits. Reading about your colleague's $140k penalty really makes me pause though. I'm wondering - for those who've successfully navigated this, what's the minimum number of rental properties you'd recommend to realistically generate enough hours for REPS qualification? And has anyone tried the strategy of purchasing properties that need significant renovation work to legitimately rack up more documented hours? Also curious about the timing - if I start investing in real estate this year, can I claim REPS status immediately or do I need to establish a track record first? The documentation requirements sound intense but doable if you're organized from day one.

I'm using H&R Block software and they told me to copy the employer name EXACTLY as it appears on box e of my W-2, including Inc, LLC, Corp or whatever abbreviation is there. They said it needs to match the IRS records 100% or it could get flagged.

Thanks everyone for all the helpful advice! I just wanted to follow up on my original question. I ended up using the exact name from box e of my W-2, including the "INC" part, and my return was accepted without any issues. For anyone else dealing with this - I was overthinking it way too much. The key really is just copying whatever is printed on your W-2 exactly as it appears. Don't try to "clean it up" or make it look nicer - the IRS matching system expects it to be identical to what your employer reported. My refund is already processing, so I'm really glad I didn't second-guess myself and change anything. Sometimes the simplest approach is the right one!

BE CAREFUL with using Venmo for tax refunds! I've seen numerous issues: • Venmo sometimes flags large government deposits as suspicious • Their customer service is nearly impossible to reach if there's a problem • Some users have had accounts temporarily frozen after receiving tax refunds • Venmo is not a bank and doesn't offer the same protections • If there's an issue with your deposit, resolving it takes much longer than with traditional banks Last year, my refund was held for "review" for 9 days before being released. The IRS confirmed they sent it, but Venmo's fraud department had flagged it. I couldn't reach anyone helpful at Venmo during that time. Never again!

I received my refund through Venmo yesterday (3/14) even though my DDD was 3/15! It posted at 2:18pm EST and showed up as "US TREASURY 310 TAX REF" just like others have mentioned. I was worried about potential delays after reading horror stories, but it actually came a day early. For anyone still waiting, I'd suggest checking your account transcript on the IRS website - if you see the TC846 code with your DDD, the money is definitely on its way. Venmo seems to process these deposits in the afternoon, so don't panic if you don't see it first thing in the morning like with traditional banks. Hang in there!

A little off topic but make sure you've set aside enough for your 2025 estimated tax payments if you're still planning on selling more investments! I got hit with a penalty last year because I didn't realize I needed to make quarterly estimated payments on investment gains. The penalty wasn't huge but still annoying on top of the tax bill.

I'm in a somewhat similar situation - owing about 8k after some unexpected freelance income this year. After reading through all these responses, I'm leaning toward paying in full rather than setting up a payment plan, especially since you mentioned you're planning to buy a house. The debt-to-income ratio impact that Benjamin mentioned is really important. Even a small monthly payment to the IRS could potentially reduce your mortgage qualification amount. Since you have the 80k sitting in savings and your tax bill is 13k, you'd still have 67k left for your down payment and emergency fund, which seems like a solid position. One thing I'd add - if you do decide to pay in full, consider using a credit card that offers cashback or rewards if you can pay it off immediately. Some people earn 1-2% back on tax payments this way, though there's usually a processing fee of around 1.87-1.99%, so you'd only come out slightly ahead with a good rewards card. Just another small optimization to consider!

Something else to consider - if you wait too long to file, your refund might get delayed even further because the IRS prioritizes processing returns filed by the deadline. The later in the year you file, the longer the processing times tend to get as they're dealing with amended returns, audits, etc. Just something to think about if you're counting on that refund money!

Great question! I went through something similar during my own cross-country move. While there's no penalty for filing late when you're expecting a refund, I'd still recommend filing Form 4868 for the extension - it literally takes 5 minutes online and gives you peace of mind until October 15th. Here's what I learned: even though the IRS won't penalize you for late filing when they owe you money, filing the extension keeps everything official and prevents any potential system notices. Plus, if your calculations are wrong and you actually DO owe something, you'll face penalties and interest from the original April deadline if you don't file the extension. Since you just moved states, double-check if you need to file in multiple states too - those rules can be different from federal. And honestly, with a new job and move, your tax situation might be more complex than you think (moving expenses, state income differences, etc.). Better safe than sorry! The three-year rule others mentioned is real though - you have until April 2028 to claim any 2024 refund, but don't wait that long. File the extension now for peace of mind, then tackle your return when things settle down.