This is such a timely thread! I just went through this nightmare myself last month. After reading all these suggestions, I want to add that the IRS also has a specific line for amended returns at 866-464-2050 if that's what your notice is about. One thing I learned the hard way - when you finally do get through to someone, ask them to notate your account with what you discussed. I had to call back two weeks later about the same issue and the second agent had no record of my previous call. Now I always ask for a confirmation number or case number. Also, @Giovanni Mancini since you mentioned this is for your small business, definitely try that 800-829-4933 business line that @Ava Garcia mentioned. Even if the wait is still long, at least you'll be talking to someone who understands business tax issues rather than getting transferred around between departments. Good luck with your quarterly filing deadline!

I feel your pain! Just went through this exact same struggle two weeks ago with a CP3219A notice for my consulting business. After reading through everyone's suggestions here, I tried a combination approach: 1. Called the business line (800-829-4933) that several people mentioned 2. Used the 7:30am Tuesday timing strategy 3. Had all my documents ready (EIN, notice number, previous year's return) Got through in about 40 minutes! The agent was actually knowledgeable about business tax issues and didn't transfer me around. She explained that my notice was just a computer-generated mismatch and walked me through the response process. One additional tip: when you do get through, ask them to send you a written summary of your call via mail. The agent told me this creates a paper trail that helps if you need to call back later. Also, if your notice has a specific response deadline, make sure to ask about penalty relief options if you're close to the due date. The whole experience reminded me why I'm considering hiring a tax professional next year - sometimes the peace of mind is worth the cost when dealing with business taxes!

Don't overlook the importance of matching what's on your 1099-B forms when amending. Your broker should have sent these forms showing your trading activity. Make sure what you're reporting matches these exactly. I went through a similar amendment and made the mistake of not having my forms in front of me when I redid everything. The IRS flagged it because the numbers didn't match what my broker reported. Caused a huge delay and I ended up having to redo the amendment.

I'm dealing with a very similar situation right now - had significant losses in 2021 and 2022 that I didn't properly carry forward, and now I'm trying to clean everything up before filing my 2023 return. One thing I learned from my tax preparer is to be extra careful about the timing of when you file the amended return versus your current year return. While you don't have to wait for the amendment to be processed, you do want to make sure you're consistent in how you calculate your carryover losses between the two returns. Also, if you're using tax software for your 2023 return, most programs will ask you to manually enter your capital loss carryover from the previous year. Make sure you use the CORRECTED amount (including that missing $16k from 2021) rather than what actually appeared on your filed 2022 return. Keep detailed notes about this adjustment in case you need to explain it later. The good news is that in your case, the math works out nicely - your $10k gain in 2023 can be completely offset by your carryover losses, plus you'll still have losses remaining to carry forward to future years. Just make sure you document everything clearly!

I'm in exactly the same situation! Filed on 01/28 and my federal refund was deposited within two weeks, but my NJ state return has been stuck on "processing" for over a month now. As someone who's also relatively new to the US tax system (been here about 4 years), this whole federal vs state processing speed difference is completely baffling to me. In my home country, all tax matters were handled by one central agency, so this fragmented system where each state operates independently is still confusing. The NJ Division of Taxation website is absolutely useless - it's like they designed it to tell you as little as possible. I've been refreshing that page daily hoping for some miracle update, but it's been the same generic "processing" status for weeks. It's especially frustrating when you're counting on that refund for expenses and you have no idea if it'll come next week or next month. At least knowing others are experiencing the same delays makes me feel less like I did something wrong with my filing!

I'm dealing with the exact same issue! Filed my NJ return on 01/30 and got my federal refund in about 10 days, but my state return is still stuck in processing purgatory. As someone who's been in the US for about 2 years, I'm still wrapping my head around how the federal government can be so efficient while individual states seem to be operating with systems from the dark ages. What's really frustrating is that there's no way to get any meaningful information - the NJ website just says "processing" like it's some kind of magical incantation that's supposed to make us feel better. I've been checking religiously every day hoping for some sign of life, but it's like watching grass grow in winter. The financial stress of not knowing when (or if) that refund is coming is real, especially when you're still getting established in a new country. At least seeing all these comments makes me realize it's not something I did wrong - it's just NJ being NJ!

Slighy off-topic but don't forget capital gains reporting for your crypto! Even if T1135 doesn't apply, you still need to track every single transaction for calculating capital gains/losses. CRA expects you to report: - Fair market value of crypto at time of purchase - Fair market value when sold/traded - Calculate gain/loss on each transaction - Apply 50% inclusion rate for capital gains I use Koinly to track all this stuff and it saves me tons of headaches at tax time.

Great question and excellent discussion here! I just want to reinforce what others have said about the T1135 requirements for crypto. The key distinction is WHERE your crypto is held, not what type of asset it is. Since your hardware wallet is physically located in Canada (in your home safe), the Bitcoin stored on it is considered Canadian property for tax purposes, regardless of the fact that Bitcoin itself is decentralized and not tied to any specific country. The $250K+ threshold for T1135 only applies to "specified foreign property" - and crypto on a hardware wallet in Canada doesn't qualify as foreign property. You're absolutely right to be cautious about CRA compliance, but in your situation, T1135 filing isn't required. However, do keep detailed records of your transactions and holdings as others have mentioned. The crypto tax landscape is still evolving, and good documentation will protect you if rules change or if you're ever audited. Also remember that while T1135 may not apply, you'll still need to report any capital gains when you eventually sell or trade your Bitcoin. Stay compliant and keep that hardware wallet secure!

You might consider implementing a quarterly dividend strategy alongside a reasonable base salary. This is what I do - I pay myself a consistent reasonable base that covers my actual work (based on market rates for my position), then distribute profits as needed through distributions. Remember that while S-Corp distributions aren't subject to self-employment tax, they ARE subject to income tax. And the IRS is very clear that you can't take distributions without a reasonable salary first.

The uncertainty you're facing is totally understandable - that's a massive potential revenue jump! Here's what I'd recommend based on going through something similar: Start with a conservative approach for Q1. Set your salary based on a blend of last year's performance plus modest growth expectations - maybe bump from $65k to around $75-80k to start. This keeps your fixed commitment manageable while acknowledging some growth. Then implement quarterly reviews. As you hit Q2 and Q3, if the revenue is materializing as projected, you can either: 1. Increase your base salary mid-year (requires payroll adjustments) 2. Pay yourself W-2 bonuses quarterly to catch up 3. Take the excess as distributions (though remember you need that reasonable salary first) The IRS doesn't expect you to predict the future perfectly, but they do expect you to make reasonable adjustments as circumstances change. Document everything - why you set the initial salary, what factors you considered for increases, and how you determined what's "reasonable" for your role and industry. Most importantly, focus on what you'd need to pay someone else to do your job, not on percentages of profit. Your duties might not change much even if revenue quadruples, so your salary shouldn't necessarily scale directly with profits.