What happens if the 90 days passes and you don't respond at all? Do they automatically assess the full amount they think you owe?

Yes, if you don't respond within the 90-day period, the IRS will automatically assess the tax as proposed on the Form 4549. The amount will then be added to your account balance, interest will continue accruing from the original due date of the return, and the IRS may begin collection activities. This is why it's so important to either respond with documentation showing why you disagree with their findings, or if you agree, to set up a payment plan before collection activities begin. Once the assessment is finalized, your options become more limited and potentially more expensive.

Does the Form 870 come with every 4549 notice? I don't think I got one with mine but now I'm worried I might have missed something important.

Do you know if having the wrong address on a CP148A could cause issues with state unemployment insurance taxes? I'm worried that if the IRS has wrong info it might mess up my state UIT reporting too.

Having the wrong address on a CP148A won't directly impact your state unemployment insurance taxes. State and federal systems are separate, though they do share information occasionally. However, the underlying issue - incorrect address information in government databases - could potentially cause problems with both agencies. It's important to ensure your address is correct with both the IRS and your state tax authority to avoid missing important notices from either one. State UIT reporting is primarily handled at the state level, but keeping consistent information across all agencies is always good practice.

This makes sense - I've seen similar data sharing trigger notices. The government agencies definitely talk to each other. Better to make sure all your info is consistent across every agency.

Thanks for the additional insights! Do museums typically provide documentation stating they'll use the artwork for their exempt purpose? And how does the IRS verify this - do they actually follow up with the museum?

Museums will typically provide you with a formal acknowledgment letter that should state their intentions for the artwork. The better museums will explicitly state that the work will be used for their exempt purpose (display, education, etc.). The IRS doesn't routinely follow up with museums, but in case of an audit, they can request documentation from both you and the receiving organization. This is more common with high-value donations. Form 8283 actually requires the receiving organization to sign acknowledging receipt of the donated property, and they're supposed to file Form 8282 if they dispose of the property within three years, which creates a paper trail the IRS can follow.

There absolutely are rules about this! If you hold the property for less than a year before donating, it's considered a short-term capital gain property, and your deduction is limited to your cost basis (what you paid for it), not the appraised value. You need to hold the property for more than a year to get the full fair market value deduction. This is specifically to prevent the kind of quick flip-and-donate scenario you're describing.

That's really helpful information. Is the low-income certification something separate I need to apply for, or is it part of the OIC application?

The low-income certification is actually included as part of the OIC application process. When you complete Form 656, there's a section (Section 1) where you can check a box to request the low-income certification. If your household income is at or below 250% of the federal poverty guidelines, you qualify for both the application fee waiver and to skip the initial payment requirement. Based on your annual income of $41K, you might qualify depending on your household size. For 2025, the threshold for a single person is around $36K, but for a household of 2, it's about $49K. Definitely worth checking if you're close to those numbers.

I used a CPA who specializes in IRS resolution for my OIC last year. Cost me $1,500 total. Worth every penny because they found several exemptions I would have missed. My offer got accepted for about 15% of what I originally owed. Those national tax relief companies with the radio ads wanted to charge me $4,500+ for the same service, so definitely shop around.

I tried the $0 trick and my return got rejected. Does that only work with certain tax software? I was using FreeTaxUSA.

The $0 AGI option works with all tax software that uses the IRS e-file system, but there are some specific conditions. It's most reliable for first-time filers. For returning filers, it works if you didn't file last year or if you've had a significant change (like filing status). With FreeTaxUSA specifically, make sure you're selecting the right option - there should be something like "I don't have last year's AGI" or "I don't have access to my previous return." The software might have a specific workflow for this situation.

If you don't file by midnight tonight and you owe taxes, you'll face a failure-to-file penalty of 5% of unpaid taxes for each month your return is late, up to 25%. There's also interest that accrues daily. HOWEVER - if you're getting a refund, there's no penalty for filing late! You just won't get your refund until you file. So if you're getting money back, you can file tomorrow without any penalty.