Do you know if there's a minimum amount you need to owe before you can get on a payment plan? I might owe around $800 and am worried I'll have to pay it all at once.

You can get on a payment plan for any amount you owe, but the process is different depending on how much. If you owe less than $50,000, you can apply online through the IRS website using their Online Payment Agreement tool. For around $800, you could qualify for what they call a short-term payment plan (120 days or less) with no setup fee. If you need longer, they have long-term plans too, but those have setup fees. Interest and penalties continue to accrue until you pay in full, but they're relatively low compared to credit card interest. Just make sure you apply as soon as you file your return!

This is actually great advice. I've seen this happen more often than people realize, especially with smaller employers who might have less sophisticated payroll systems. Always good to double-check by adding up all your paystubs!

Harsh but true. Plus by the time you're making attending physician salary, you'll also have around $300k in student loans to pay off. Your concern shouldn't be the tax bracket but how to manage that debt efficiently.

Do they charge for this service? I'm already going to be paying a lot in back taxes so trying to save wherever I can.

The Taxpayer Assistance Centers are completely free - they're run by the IRS. No charge at all for the service. They won't prepare your return for you, but they can answer questions, help you access your tax records, and point you toward free filing options.

Fresh Start isn't really a program, it's just a collection of different relief options. But you're right about first-time penalty abatement! That's what helped me with my late 2020 return. You just have to call and ask for it specifically.

I sold some ISO shares last year that I had exercised 3 years prior. The broker reported the sale on Form 1099-B but only included the exercise price as my basis, not any AMT adjustments I had previously paid. I had to manually adjust my basis on Schedule D to avoid double taxation. The IRS never questioned it, but I kept meticulous records including my original Form 3921 and the tax return where I reported the AMT adjustment. My understanding is that the IRS systems don't automatically cross-reference your old 3921, so good record-keeping is essential.

Thanks for sharing your experience. That's helpful to know about the 1099-B only showing the exercise price. I'll make sure to keep all my 3921 forms and tax returns so I can properly adjust my basis when I eventually sell. Sounds like the burden is really on us to track everything correctly.

That's a smart idea I hadn't thought about. Would I just put it in as an informational note or is there a specific way you'd recommend documenting it?

Most tax software has a section for notes or additional information you want the IRS to see. I'd simply list "Received Form 3921 for ISO exercise - below AMT threshold" and include the company name, number of shares, exercise date, and FMV. If there's a miscellaneous forms section, you could also add a brief statement there. The key is to acknowledge you received the form while making it clear there's no tax impact for this year. This creates a paper trail showing you weren't trying to hide anything.

Couldn't this still trigger an audit though? Especially if the bonus happens right before the wedding?

You're right to be concerned about timing. Any bonus right before the wedding could appear suspicious if audited. The key is making sure it's reasonable compensation for actual work performed. If they're legitimate employees with a history of employment, and the bonus is in line with what you'd pay other employees for similar contributions, you're on safer ground. Documentation is crucial here - performance reviews, bonus criteria, and a consistent bonus program for all employees would help substantiate the business purpose. But if they've never worked for you before and suddenly get a "job" with a big bonus right before their wedding, that's pretty much asking for trouble.

TurboTax is okay but I've found it doesn't catch some of these nuanced situations. It'll let you enter whatever and won't necessarily flag potential issues. I learned this the hard way last year.