9 One thing nobody's mentioned - if you're going to zero out withholding, you NEED to be disciplined about saving that money. I did this exact thing a few years back, thought I'd just save the tax money myself, then ended up spending it. When April came around, I owed $22k that I didn't have, plus penalties. Had to get on an IRS payment plan which was a whole other headache.

21 One strategy I've used instead of zero withholding is to claim enough additional withholding allowances to significantly reduce withholding, but not eliminate it entirely. Then I make quarterly estimated payments to cover the difference and avoid penalties. Less extreme than zero withholding but still puts more money in your pocket throughout the year!

I'm an HR assistant at a restaurant chain, and this happens sometimes! The most common causes I see are: 1. Someone entered the W-4 information incorrectly into the payroll system 2. The employee inadvertently checked the "exempt" box on their W-4 3. The employee claimed a very high number of dependents or deductions 4. The new employee is making under the threshold where federal withholding kicks in With your income at $3,200/month, #4 definitely isn't your issue. Ask HR to pull your original W-4 form and check what's in their system against what you actually filled out.

I went through something very similar last year! The key thing is to act fast - the longer you wait, the bigger the potential tax bill becomes. Here's what I'd recommend doing immediately: 1. **Request a copy of your original W-4** from HR/payroll and compare it to what they have in their system 2. **Calculate roughly what you should owe** - at $38,400 annually, you're probably looking at around $2,000-3,000 in federal taxes for the full year 3. **Consider making an estimated tax payment** to the IRS for the months where nothing was withheld to avoid underpayment penalties When I had this issue, it turned out my employer had accidentally marked me as "exempt" in their payroll software even though I never claimed that on my W-4. Once they fixed it, I had them increase my withholding slightly for the rest of the year to help catch up. The good news is this is fixable! Just don't let it slide any longer. Also keep all documentation of when you reported the issue to your employer in case you need to show the IRS that you tried to correct it promptly.

Has anyone actually USED FreeTaxUSA's Audit Assist service during a real audit? All I'm seeing is theoretical discussion about what it offers, but I'd love to hear from someone with firsthand experience.

I actually went through a full IRS audit last year using FreeTaxUSA's Audit Assist, so I can give you real firsthand experience. I was audited for my 2022 return which included some business expenses that apparently raised red flags. The Audit Assist team was genuinely helpful throughout the process. They walked me through the initial audit letter line by line, helped me create a timeline for gathering documents, and even provided templates for organizing my receipts and records. When I had questions about what the IRS was asking for, they responded to emails usually within 24 hours. The limitation is exactly what others mentioned - they don't represent you directly. So when it came time for the actual meeting with the IRS agent, I was on my own. But they did help me prepare thoroughly, reviewed all my documentation beforehand, and gave me talking points for the meeting. In the end, the audit went smoothly and I only owed about $200 in additional taxes. Whether that was due to their preparation help or just luck, I can't say for sure, but I felt much more confident going into it than I would have on my own. For the price point, I think it's decent value, though if you're dealing with something really complex you might want to spring for actual representation.

Pro tip: check your transcripts early morning EST time, thats when they usually update. Source: been doin this for years

Don't panic! This is totally normal for returns filed at the end of January. The "Return Not Present" message doesn't mean your return was lost or rejected - it just means the IRS hasn't processed it into their system yet. During peak filing season (Jan-April), the IRS can take 3-4 weeks or even longer to process returns, especially with the volume they're dealing with right now. Your return is likely sitting in their processing queue. If you filed electronically, you should have received a confirmation email with an acknowledgment that it was successfully transmitted. That's your proof it made it to them. If you're really concerned, you can use the "Where's My Refund" tool on IRS.gov - it updates more frequently than transcripts and will show if there are any issues with your return. I'd give it another week before calling the IRS directly. Their phone lines are swamped right now and you'll probably just get told the same thing - to wait for processing to complete.

Has anyone used the online payment options for paying late taxes? I'm wondering if it's better to use IRS Direct Pay or pay with a credit card (even with the processing fee) to avoid further penalties?

One thing that might help you avoid this situation in the future - the IRS actually allows you to set up automatic payments when you file your return, even if you can't pay the full amount right away. You can schedule the payment for up to 180 days after the filing deadline, which gives you time to get the money together without incurring the failure-to-pay penalties. For your current situation, definitely make the payment ASAP since penalties and interest compound daily. The calculations others provided look accurate, but I'd also recommend calling the IRS (or using one of those callback services mentioned) to see if you qualify for any penalty relief programs. Sometimes they'll waive penalties for first-time offenders or if you have a reasonable cause for the late payment. Also worth noting - if you're going to be in a similar cash flow crunch next year, you can adjust your withholdings or make quarterly estimated payments to avoid owing a large amount at tax time.