I tried to access my transcripts online but got locked out after failing the identity verification. I think this might be related to the name change issue mentioned above. Is there another way to get these transcripts?

You can request transcripts by mail using Form 4506-T if the online system isn't working for you. It takes about 10 business days to arrive, but it's better than nothing. Another option is to visit a local Taxpayer Assistance Center in person - just make sure to schedule an appointment first by calling their appointment line. Bring multiple forms of ID including your Social Security card and they can often help sort out identity verification issues on the spot and get you copies of your transcripts.

Definitely agree. I worked for the IRS for 7 years and the biggest problems were always from people who ignored the initial notices. The good news is they're usually pretty reasonable about removing penalties if you can show you're actively trying to resolve the issues.

Thanks for confirming that. I wish I'd known sooner! I eventually had to hire a tax professional which cost me $450 to straighten everything out, plus I paid about $300 in penalties that probably could have been avoided.

Thanks, that's helpful! Do you actually submit that insolvency worksheet with your tax return or just keep it for your records? And how detailed do you have to be with listing personal property? Like do I need to estimate the value of my couch and TV separately or just put "household goods: $X amount"?

You don't submit the worksheet with your return - it's just for your own records and in case of an audit. But definitely complete it thoroughly and keep it with your tax documents. For personal property, you don't have to be extremely detailed for each individual item. Grouping them makes sense - "household furnishings: $2,000" or "electronics: $1,500" is fine. Just make reasonable estimates of what you could actually sell these items for (garage sale or Craigslist values), not what you paid for them. And yes, definitely include vehicles, jewelry, tools, anything with value. For retirement accounts, only include what you could actually access (minus penalties) if you had to liquidate them at that time.

Yes, forgiven credit card debt generally counts as cancelled debt and the credit card company should have issued you a 1099-C if it was over $600. If you didn't receive one, they might not have filed it, or it could have been lost in the mail. You're technically supposed to report it as income even without the 1099-C, but you can still claim the insolvency exclusion on Form 982 if you qualify. I'd recommend checking with the debt settlement company to see if a 1099-C was issued. You can also create an account on the IRS website to view all forms that were filed under your SSN.

Thanks for bringing up FSA/HSA options - I do have an HSA but haven't been maxing it out. Does anyone know if wheelchair van modifications would qualify for HSA funds? And would this approach be better than trying to claim them as itemized deductions?

Yes, the van modifications would generally qualify for HSA funds since they're considered medical expenses. The advantage of using HSA funds is that you get the tax benefit regardless of whether you itemize deductions or not, and you don't have to meet that 7.5% of AGI threshold that applies to itemized medical deductions. If you have the option, using HSA funds is almost always more advantageous than claiming itemized deductions for the same expenses. The HSA gives you triple tax benefits: tax-free contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

Totally agree about detailed invoices! We did something similar for my mom, and the modification company just gave us one lump sum initially. We had to go back and ask for an itemized breakdown of every component. Made a huge difference when filing.

That's a great point! Our modification company was pretty good about providing details, but I still had to ask for clarification on a few items. The more specific the better - like having separate line items for the ramp mechanism, the door widening, the specialized restraint system, etc. Our accountant even suggested taking photos of all the modifications as additional documentation.

That's an interesting point - I'll have to double check the paperwork. The financing company definitely framed it as a way to exercise without selling any shares (that was their main selling point), but now I'm wondering if there were any partial sales happening behind the scenes to cover taxes.

Definitely check the paperwork carefully. Some financing companies structure the transaction as a loan against the shares rather than a true cashless exercise, which preserves the tax treatment of a regular exercise-and-hold strategy. The key documents to look for would be any statements showing exactly how many shares you received versus how many you purchased, and confirmation of exactly what taxes were paid at the time. If they paid estimated taxes rather than withholding, that might explain part of the confusion too.

83(b) elections are for restricted stock, not ISOs. They don't apply in this situation at all. ISOs are governed by different tax rules.

If I'm both partners in an LLC (single-member LLC), do I still need to file a 1065? I thought in that case it just goes on my Schedule C?

You're mixing up two different business types. A single-member LLC is treated as a disregarded entity by default and would file Schedule C with your personal return, not Form 1065. A partnership requires at least two partners. If you're the only owner, you don't have a partnership by definition. Single-member LLCs report on Schedule C unless they've elected to be taxed as a corporation. Multi-member LLCs are treated as partnerships by default and file Form 1065 along with Schedule K-1s for each partner.

Is there a minimum amount you need to make before you have to do the quarterly payments? My side business only makes like $3k a year.

Generally, you need to make quarterly estimated tax payments if you expect to owe at least $1,000 in taxes for the year. However, you can avoid penalties if you pay at least 90% of the tax for the current year or 100% of the tax shown on your previous year's return (whichever is smaller). For a small side business making around $3k, it might not trigger the requirement depending on your tax situation, but it's always good to calculate your expected tax liability to be sure. Self-employment tax (15.3%) kicks in when you have $400 or more in net earnings, so even small businesses can sometimes create tax obligations.