This has been such an educational thread to follow. As someone who works with small business owners in a consulting capacity, I've definitely encountered people who think these LLC schemes are "smart tax planning" rather than fraud. What really stands out to me from all these responses is how the risk profile has completely changed with modern IRS enforcement capabilities. The days of thinking you can fly under the radar with questionable deductions are clearly over. When tax professionals with years of experience are saying they've seen clients face $27,000+ bills after audits, that should be a massive red flag for anyone considering these schemes. The point about documentation being crucial really resonates with me. Even for legitimate businesses, it seems like having detailed records showing the business purpose of every expense isn't just good practice anymore - it's essential protection in today's enforcement environment. To the original poster, I think you're absolutely doing the right thing by questioning this situation. Your professional integrity is worth far more than keeping clients who want to drag you into potentially fraudulent activities. The advice about documenting your guidance in writing and requiring acknowledgments for questionable positions seems like essential protection for anyone in your field. Thank you to all the tax professionals who shared their real experiences here - this kind of insight helps the rest of us understand just how serious these compliance issues have become.

This discussion has been incredibly valuable for understanding the real risks involved in these schemes. As someone who runs a legitimate consulting business, I've always been careful about my deductions, but reading about the IRS's advanced detection capabilities really drives home how important proper documentation is. What concerns me most is how normalized this fake LLC approach has become in some circles. People seem to think that because audit rates are low overall, they're safe - but clearly the technology has changed everything. When the IRS can cross-reference business expenses with credit card transactions and even social media activity, these schemes become incredibly easy to detect. The stories about clients facing $27,000+ bills and multi-year audits are sobering reminders that the "everyone does it" mentality is incredibly dangerous. The short-term tax savings simply aren't worth the potential financial devastation when you get caught. For those of us running legitimate businesses, this reinforces the importance of the "ordinary and necessary" test for every expense. I'd rather be conservative and pay a bit more in taxes than face the nightmare of penalties, interest, and audit costs down the road. To the original poster - you're absolutely right to distance yourself from clients who won't listen to professional guidance on compliance. Your reputation and license are worth far more than any client fees.

This is incredibly helpful - thank you for sharing the direct number and exact steps! I've been stuck in limbo for 5 days with my refund and was starting to panic. The IRS website just says "sent to bank" but my account shows nothing. Just called 877-552-7255 and followed your instructions - the rep confirmed Cross River has my deposit and it should process within 1-2 business days. She mentioned they're definitely seeing delays due to enhanced fraud screening. Really appreciate you taking the time to research this and share what actually works. Bookmarking this post! 🙏

This is such a lifesaver! I've been stuck in this Cross River Bank limbo for 6 days and was going crazy not knowing where my refund was. Just called the number (877-552-7255) and pressed 1 like you said - the rep actually confirmed they have my deposit and said it should release within 2-3 business days max. She explained they're doing extra security checks on IRS deposits which is causing the delays. I was ready to file complaints with everyone but this at least gives me peace of mind that my money isn't lost. Thanks for doing the legwork and sharing the exact steps - you probably saved hundreds of people from having panic attacks! 🙌

Since no one mentioned this specifically - Cash App should provide you with tax documents in their app. Go to the profile tab, then documents, and see if there's anything there. If your activity was minimal ($5 total), they probably didn't generate anything, which actually makes your life easier for tax filing. Just keep good records of your purchases and sales for when you do hit reportable thresholds.

Just to add some clarity on the thresholds - Cash App (and most brokerages) are required to send 1099-B forms if you have gross proceeds from sales of $600 or more in a tax year, OR if you had any reportable transactions regardless of amount (like certain corporate actions). Since you only have $5 total and haven't sold anything, you're well below any reporting threshold. The key thing people get confused about is the difference between having stocks worth $5 (not taxable) versus selling stocks and making $5 profit (technically taxable but practically ignorable at that level). You're in the first category, so you're good to go. Just remember that when you do eventually sell, that's when the tax clock starts ticking!

4 Does anyone know if you need to apportion the RSU income based on days worked in each state, or is it strictly based on residency at vesting? My situation is complicated because I lived in California when the RSUs were granted, but was traveling between California and Texas for work during the vesting periods.

One thing I'd add is to make sure you understand the timing of when California considers RSU income to be "earned." California generally follows the rule that RSU income is earned ratably over the vesting period from grant date to vest date, not just on the vesting date itself. This means if you received RSUs in January 2022 while living in California, but moved to Washington in July 2022, and the RSUs vested in January 2024, California would typically claim tax on approximately 50% of that income (the portion earned while you were a CA resident). The key is documenting your exact move date and keeping records of your RSU grant agreements. I'd also recommend running the numbers both ways - allocating by days worked vs. strict residency periods - to see which method results in the most accurate tax treatment for your specific situation.

Bruh these apps all the same fr just pick one and pray 😭

I've used both actually! DailyPay was solid for my refund last year - took about the same time as Chime (2-3 days after IRS sent). The main difference I noticed was DailyPay's customer service was more responsive when I had questions. But honestly @Zoe Papadakis makes a good point about traditional banks being more reliable overall. If you're already set up with Chime and it's worked fine, might not be worth switching unless you have other reasons to use DailyPay.