I'm dealing with something very similar right now and this thread has been incredibly helpful! My tenant is 2 months behind on rent but just handed me some kind of "promissory note" from his "private trust" claiming it will cover all past and future rent payments. He also mentioned he's filing tax forms to "discharge the debt" which now makes perfect sense after reading about these redemption theory scams. What's really concerning me is that he's been asking for my business EIN number saying he needs it to "properly process the trust payment." After reading all these responses, I'm realizing this is probably part of the scheme to file fraudulent tax forms using my information. I'm going to follow the advice here - document everything, report to the IRS with Form 3949-A, and send certified mail notice that I'm aware of the fraudulent activity. It's scary how sophisticated these scams have become, but at least now I know I'm not alone in dealing with this and there are clear steps to take. Thank you especially to those who shared the resources like taxr.ai for understanding the tax implications and claimyr for actually getting through to the IRS. Having concrete tools to handle this situation makes it feel much less overwhelming. For any other landlords reading this - don't ignore weird paperwork or trust documents from tenants. These schemes rely on our confusion and inaction to succeed.

I'm a tax professional and I want to emphasize how serious this situation is. What your tenant is doing with the 1099-A form is absolutely fraudulent - this form is specifically for reporting acquisition or abandonment of secured property by lenders, not for tenants to create fictional lending relationships with their landlords. The fact that he's listing you as the "borrower" when you've never borrowed anything from him is a clear misuse of IRS forms. This appears to be part of what's known in tax circles as a "frivolous tax position" - using official forms incorrectly to support false claims about debts, trusts, or other financial arrangements that don't actually exist. From a professional standpoint, I strongly recommend: 1) Immediately file Form 3949-A with the IRS to report suspected abusive tax avoidance 2) Keep detailed records of all rent payments (or lack thereof) to demonstrate the actual landlord-tenant relationship 3) Contact the tax preparation service that filed this form - legitimate preparers should have controls to prevent obviously fraudulent filings 4) Consider consulting with a tax attorney if the tenant continues submitting fraudulent forms Don't underestimate how these schemes can escalate. I've seen cases where tenants file multiple fraudulent forms creating complex webs of false documentation that can take significant time and money to untangle. The sooner you report this and establish a clear record that you're not participating in any scheme, the better protected you'll be. The IRS takes these frivolous filing schemes very seriously and has specific procedures for handling them. You're not just protecting yourself - you're helping combat tax fraud that costs all taxpayers.

I've been using QuickBooks for payroll with ITIN employees and it handles them just fine. You just enter the ITIN in the SSN field when setting up the employee profile. The system treats it the same as an SSN for tax calculations and reporting. One tip - make sure to double-check that the ITIN format is correct (9XX-XX-XXXX) before submitting any payroll reports. I had one instance where I accidentally transposed numbers and it caused issues with my quarterly filing. Also, keep copies of their ITIN documentation in their employee files. During my state audit last year, they specifically asked to see proof of the ITINs I had reported. Having the official IRS letters made that process much smoother. For state reporting, I haven't had issues in my state (Texas), but I've heard some states can be pickier about the format. It's worth calling your state's employer services line to confirm their requirements before your first filing.

Just wanted to add one more important point that I learned the hard way - make sure you understand the difference between expired and valid ITINs. ITINs can expire if they haven't been used for tax filing in recent years, and the IRS has been deactivating unused ITINs. If your potential employee's ITIN has expired, they'll need to renew it before you can use it for payroll purposes. You can check if an ITIN is still valid by looking at the IRS letter - it should show the issue date and any expiration information. An expired ITIN will cause problems when you try to file your quarterly reports. I had an employee whose ITIN had expired without them realizing it, and we had to hold off on their start date until they could get it renewed through the IRS. The renewal process can take several weeks, so it's worth checking this early in your hiring process. The employee will need to file Form W-7 with supporting documentation to renew an expired ITIN. This might be worth verifying with your candidate before making a final hiring decision, just so there are no surprises that could delay their employment start date.

One thing I haven't seen mentioned yet is quarterly estimated tax payments. If your cousin's total tax liability for the year (including this prize money) will be significantly higher than what's being withheld from her regular job, she might need to make estimated quarterly payments to avoid underpayment penalties. The IRS generally expects you to pay as you go, so if this $25k CAD (roughly $18-19k USD depending on exchange rates) bumps her into a higher tax bracket or creates a large tax bill, waiting until next April to pay could result in penalties and interest. She should calculate her expected total tax liability for the year including the prize money and compare it to what's already been withheld from her paychecks. If there's going to be a shortfall of more than $1,000, she'll likely need to make estimated payments by the quarterly deadlines. This is especially important since she probably didn't have any US taxes withheld from the Canadian prize money, so the entire US tax burden on those winnings will be due when she files. Better to plan ahead than get hit with surprise penalties on top of the tax bill!

Your cousin is in for quite a tax adventure! As everyone has mentioned, she definitely needs to report this to the IRS as worldwide income. Here's what I'd add to the great advice already given: Make sure she gets a clear breakdown from the Canadian production company of exactly what was withheld before she received her payment. Sometimes game shows withhold more than just income tax - they might deduct production fees, agent commissions, or other expenses that won't qualify for the foreign tax credit. Also, keep in mind that the $25,000 CAD might not all be "prize money" for tax purposes. Some game shows structure winnings as part prize, part appearance fee, or part reimbursement for expenses. Each component could have different tax implications, so she'll want to clarify this with the show's accounting department. One more thing - if she had any expenses related to participating in the show (travel, lodging, meals while in Toronto), she generally can't deduct these against the winnings since game show participation is considered a personal activity, not a business. The IRS is pretty strict about this, so don't count on offsetting any of the tax burden with trip expenses. The good news is that with proper planning and documentation, she should be able to handle this without too much drama. Just make sure she doesn't spend all the winnings before setting aside money for Uncle Sam!

I'm a newcomer to this community and dealing with this exact same frustrating situation right now! Applied for my EIN 3 weeks ago for my new freelance marketing business and absolutely nothing has arrived in the mail. This thread has been incredibly helpful and reassuring - I was genuinely starting to worry that I'd somehow messed up my application or that there was an issue with my mailing address. The unanimous advice about calling 800-829-4933 at exactly 7:00 AM on Tuesday or Wednesday mornings is really compelling. It's amazing how consistent this strategy is across so many different people's experiences. I had no idea that timing could make such a dramatic difference with IRS hold times, but the multiple success stories here give me real confidence. What really opened my eyes is learning that most banks will accept just the EIN number without requiring the physical CP-575 letter. I've been putting my entire business banking setup on hold for weeks thinking I needed that official documentation first. This insight alone will save me so much time and frustration! The real-world experiences and practical advice shared here are infinitely more valuable than the generic guidance I found on the IRS website. Planning to set my alarm for 6:55 AM tomorrow morning and call with my business formation documents, SSN, business address, and application date all ready. Thanks to everyone for sharing such detailed, actionable strategies - this community knowledge is exactly what people stuck in EIN limbo need to move forward with their businesses!

I'm a newcomer to this community and currently experiencing this exact same frustrating situation! Applied for my EIN 4.5 weeks ago for my new remote consulting business and absolutely nothing has arrived in the mail. This entire thread has been such a relief to read - I was genuinely starting to panic thinking I'd somehow botched my application or that there was a problem with my address. The overwhelming consensus here about calling 800-829-4933 at exactly 7:00 AM on Tuesday or Wednesday mornings is incredibly valuable intel. It's amazing how consistent this timing strategy is across everyone's success stories. I had no idea that the time of day could make such a dramatic difference with IRS hold times, but the multiple positive experiences shared here give me real confidence in this approach. What absolutely blew my mind is learning that most banks will accept just the EIN number itself without requiring the physical CP-575 letter. I've been completely stalling on opening my business bank account for weeks, thinking I needed to wait for that official documentation to arrive first. This community insight alone will save me weeks of unnecessary delays! The practical, real-world advice from people who've actually navigated this process successfully is infinitely more helpful than the vague "please wait patiently" guidance on the official IRS website. Planning to set my alarm for 6:55 AM tomorrow morning and call with my LLC formation documents, SSN, business address, and application timeline all prepared. Thanks to everyone for sharing such detailed strategies and creating this incredible resource for people stuck in EIN limbo!

As a tax professional, I want to emphasize something crucial that hasn't been mentioned yet: keeping the Square card exclusively for business expenses is actually a smart move, but you need to be meticulous about it. The IRS loves clean separation between personal and business transactions. However, don't just rely on the Square card statements for your records. Make sure you're keeping receipts and documenting the business purpose of each expense. If you buy office supplies with your Square card, note what they were for. If you pay for a business lunch, record who you met with and the business purpose. The Square card creates a paper trail, but you still need to substantiate the business nature of each expense. One thing to watch out for: if you ever use that Square card for personal expenses (even accidentally), it can complicate things during an audit. The IRS might question the legitimacy of all your business expenses if they see mixed usage.

One thing I haven't seen mentioned here is that you should also be prepared for state tax implications. While everyone's talking about IRS reporting, many states have their own reporting requirements for payment processors. Some states automatically receive copies of your 1099-K forms, and they may have different thresholds or rules than the federal government. Also, since you're just starting out as an independent contractor, make sure you're setting aside money for quarterly estimated tax payments. The IRS expects you to pay taxes on your income throughout the year, not just when you file your annual return. A good rule of thumb is to set aside 25-30% of your Square income for taxes, depending on your tax bracket. You can easily do this by transferring a percentage of each payment you receive into a separate savings account designated for taxes. The Square card strategy for business expenses is solid, but remember that you'll also want to track mileage if you drive for business purposes - that's often one of the biggest deductions contractors miss!