your supposed to keep checking Where's My Refund tool too, not just transcripts. Sometimes WMR updates first

Hey Amara! I totally feel your pain as a fellow first-timer 😅 The N/A showing up after ID verification is actually super normal - it basically means the IRS is still working through your case after confirming your identity. The date change from 5/1 to 5/22 is definitely a good sign! It shows they're actively processing your return. That "LOW SIGNIFIES A CREDIT AMOUNT" message you're seeing just means that negative numbers on your transcript would represent credits (like your refund). Since everything is showing $0.00 right now, it's just because they haven't finished processing yet. The 3-week timeline the phone rep gave you was probably a bit optimistic - after ID verification, it usually takes closer to 6-9 weeks total. I know it's frustrating to wait, but that date change is progress! Keep checking your transcript weekly and hang in there 💪

Remember that you can also get a property appraisal specifically for determining the land value for tax purposes. It costs money but might be worth it if you have a significant property value. I did this for my rental and the appraiser specifically broke out the land value from the improvements.

Thanks everyone for all the helpful advice! I think I was overcomplicating this. Based on what you've all shared, I'm going to use the proportional method with my tax assessment - so 19% of my $250k purchase price for land ($47,500) and the remaining $202,500 for the building depreciation. I really appreciate the clarity on why the assessed values are so much lower than what I paid - I had no idea that counties use different assessment ratios for tax purposes. That was throwing me off completely. For anyone else in a similar situation, it sounds like there are multiple approaches (assessment ratio, closing documents, appraisal, or even calling the IRS), but the proportional method using tax assessments seems to be the most straightforward for most people.

Has your new CPA filed the missing returns yet? This is super important! Even while you're fighting the penalties, you need to get those past returns filed ASAP to stop additional penalties from accruing. Each month adds more to what you owe. Also, check if you were actually due a refund for either of those years. If you were, you might be facing a smaller penalty than you think once everything is properly calculated. But there's a 3-year deadline for claiming refunds, so don't delay!

I went through almost the exact same situation two years ago with a negligent tax preparer who failed to file my 2019 and 2020 returns. The IRS hit me with over $7,000 in penalties and I was absolutely panicked. Here's what worked for me: I immediately had my new CPA file the missing returns (this stops additional penalties from accumulating). Then we prepared a detailed penalty abatement request using Form 843, including every email, text, and payment record showing I had repeatedly tried to get the original preparer to file on time. The key is documenting your "reasonable cause" - you need to show you made good faith efforts to comply but were prevented by circumstances beyond your control. Your email trail asking for the filings will be crucial evidence. I also filed a complaint with my state's board of accountancy and sent a demand letter to the CPA's professional liability insurance. While the board complaint is still pending, his insurance company actually settled and covered most of the penalties to avoid a lawsuit. Don't give up! The IRS does approve these requests when you have solid documentation. It took about 6 weeks, but they abated about 80% of my penalties. The whole experience was a nightmare, but there definitely are ways to fight this.

Don't forget about qualified business income deduction (Section 199A)! As a construction company owner you might qualify for up to 20% deduction of your business income. That alone could save you $200k on taxes. But there are income limitations and it gets complicated depending on if you're considered a "specified service business" or not.

Wow, congratulations on hitting $1M in profit! That's incredible growth for a construction business. I can totally understand feeling overwhelmed by the tax implications though. A few quick thoughts to add to the great advice already given: 1. **Equipment purchases** - Since you're in construction, definitely look into buying equipment before year-end. Things like trucks, excavators, tools, etc. can often be fully deducted in the year of purchase. 2. **Business structure** - The S-corp suggestion is solid. With your income level, the self-employment tax savings alone could be huge. You'd essentially be saving 15.3% on a large portion of your income. 3. **Retirement contributions** - Max out whatever retirement accounts you can. With $1M profit, you could potentially contribute $61K+ to a SEP-IRA or Solo 401(k), which directly reduces your taxable income. 4. **Professional help** - At this income level, investing in a good CPA who specializes in construction businesses is worth every penny. They'll know industry-specific deductions and can help with proper tax planning for next year too. The key is acting quickly since we're getting close to year-end. Don't let analysis paralysis cost you - even basic moves like maxing retirement contributions and strategic equipment purchases can save you tens of thousands.

One thing I've learned after getting several IRS letters over the years - ALWAYS respond by the deadline even if it's just to say you're working on it or need more time! That's been my #1 rule and it's kept me from having small issues turn into bigger ones.

Now that you've mentioned it's a CP75 notice, I can definitely understand why your tax preparer wasn't overly concerned - these are routine audits for the Earned Income Tax Credit that happen quite frequently. The IRS randomly selects returns that claimed EITC for verification, and it's not necessarily because they think you did anything wrong. However, I do think your tax preparer should be more proactive in helping you respond properly. For a CP75, you'll typically need to provide documentation like birth certificates for any children you claimed, school records showing where your kids lived during the tax year, medical records, and proof of your income. The specific requirements should be listed in the letter. Since you used a professional tax service, they should have copies of all the documents you provided when filing and should be able to help you gather what's needed for your response. I'd recommend scheduling a proper meeting with them rather than just texting - this type of notice requires a documented response, and they should be walking you through exactly what needs to be submitted. Don't stress too much about it, but definitely don't ignore it either. Most people who respond properly to CP75 notices with the right documentation get through the process without any issues.