This sounds exactly like what happened to me last year! The sudden doubling of both OASDI and federal withholding is definitely a payroll system error - I've never seen a legitimate tax scenario that would cause that exact pattern. What likely happened is your payroll system applied the tax calculations twice, probably triggered by your recent promotion or a system update for the new tax year. The fact that you're seeing around 12.4% for OASDI instead of the standard 6.2% is a dead giveaway - they're incorrectly deducting both the employee portion AND the employer portion from your paycheck. When you meet with HR on Monday, be prepared with specific numbers. Calculate the exact percentages and bring printed copies of both your normal paycheck and this reduced one. Don't let them brush you off with vague explanations about "tax adjustments" - the math clearly shows something is wrong. Ask them to show you the actual tax calculation screen in their system if possible. Sometimes seeing how their software computed the numbers makes the error obvious to everyone involved. And definitely push for the correction to be processed on your very next paycheck rather than "we'll look into it over the next few weeks." Keep detailed records of exactly how much was overwitheld so you can verify their correction is complete. This type of glitch is usually fixable once properly identified - you'll get your money back, just stay persistent with HR until it's resolved!

This is definitely a payroll system error - the simultaneous doubling of both OASDI and Federal Withholding is a classic sign of duplicate tax calculations being applied to your paycheck. What's most likely happening is that when your promotion was processed or during a recent system update for the new tax year, the payroll software got confused and started applying your tax withholdings twice. The 12.4% OASDI rate you're seeing is particularly telling - that's exactly what happens when the system incorrectly deducts both the employee portion (6.2%) AND the employer portion (6.2%) from your check, when it should only be deducting the employee portion. Before your HR meeting on Monday, document everything clearly: - Print copies of your last normal paycheck and this problematic one - Calculate the exact tax percentages being withheld (OASDI should never exceed 6.2% of gross wages) - Note the specific dollar amounts that were overwitheld When you meet with HR, be firm about getting this resolved quickly. Ask them to show you their system's tax calculation screen and request that the correction be processed on your immediate next paycheck, not "sometime in the coming weeks." This is their error and you shouldn't have to wait to get your own money back. Don't let them dismiss this as normal tax adjustments - the math clearly shows something is wrong. This type of payroll glitch happens more often than you'd think, especially during tax year transitions, and it's usually straightforward to fix once properly identified. Stay persistent and you'll get this resolved!

Great decision, Sean! This thread has been incredibly educational for everyone involved. As someone who works in financial compliance, I see these types of schemes regularly, and they always follow the same pattern - complex structures that exist primarily for tax avoidance rather than legitimate business purposes. What's particularly valuable about this discussion is how it demonstrates the importance of community knowledge sharing. The collective experiences shared here - from those who nearly fell for similar schemes to those who got audited - create a comprehensive picture that's much more powerful than any single professional opinion. For future reference, the IRS publishes an annual "Dirty Dozen" list of tax scams that often includes these types of abusive tax shelters. They also maintain a list of "reportable transactions" that must be disclosed on tax returns, and many of these software license/LLC arrangements fall into that category. The fact that you trusted your instincts and sought out community input before making a decision shows exactly the kind of due diligence that protects people from financial harm. Your experience will undoubtedly help others who find this thread after being approached by similar companies. Thanks for sharing your story and for the follow-up on your decision. It's a perfect example of how asking the right questions and getting multiple perspectives can save you from very expensive mistakes.

As a tax professional who's been dealing with these schemes for over a decade, I want to applaud everyone who shared their experiences here - this is exactly the kind of community knowledge sharing that protects people from financial predators. Sean, your decision to walk away was absolutely the right call. What strikes me about the My Health CCM pitch is how it hits every single checkbox on the IRS's list of abusive tax shelter characteristics: artificial complexity, disproportionate tax benefits, entity creation solely for tax purposes, and most tellingly, the insistence on using their "approved" professionals. I've represented clients in audits involving virtually identical structures, and the outcomes are consistently bad. The IRS has specific teams dedicated to unwinding these arrangements, and they're very good at it. They'll typically challenge both the inflated valuation of the software licenses AND the business purpose of the entire structure. For anyone else reading this who might be considering similar arrangements, here's my professional advice: if a tax strategy requires you to create new entities, involves transactions primarily with the company selling you the strategy, or promises tax benefits that seem disproportionate to your economic risk, get multiple independent opinions from tax professionals who have ZERO financial relationship with the promoter. The legitimate tax planning world has plenty of genuine opportunities that don't require elaborate schemes or artificial time pressure. Trust your instincts, do your due diligence, and remember that the best tax strategy is one that makes business sense first and tax sense second. Thanks again to everyone who contributed to this invaluable discussion!

Thanks everyone for the incredibly thorough discussion! As someone who's helped dozens of small businesses through address changes, I wanted to add one more consideration that might be relevant for @Liam Fitzgerald and others. If you're moving your business across state lines (not just within the same state), you may also need to consider whether your business registration needs to be updated or if you need to register as a foreign entity in your new state. This is separate from the IRS Form 8822-B but equally important. For example, if you're currently registered as an LLC in California and moving to Texas, you might need to either transfer your registration or register as a foreign LLC in Texas while maintaining your California registration. This affects more than just your address - it can impact your tax obligations, annual filing requirements, and even your business insurance. The timing here is crucial because you want your federal address change (8822-B) to align with any state registration changes. I'd recommend checking with your new state's Secretary of State office or business registration department before finalizing your move timeline. Also, @Liam Fitzgerald, since you mentioned you're in consulting, don't forget to update your professional licenses or certifications if you have any - some are state-specific and may require separate notifications or transfers when you relocate your business.

This has been an incredibly helpful thread! I'm dealing with a similar situation - moving my small marketing agency from Arizona to Oregon next month. Reading through everyone's experiences, I'm realizing I need to plan this much more carefully than I initially thought. The electronic signature discussion is particularly useful since I have a business partner who's currently traveling internationally. Using DocuSign or Adobe Sign for the Form 8822-B makes perfect sense for us - we can both review and sign the form without coordinating schedules across time zones, then print and mail it as required. I'm definitely going to look into the state registration requirements that @Lola Perez and @Yuki Yamamoto mentioned. I hadn't even considered that Oregon might have different LLC requirements than Arizona. The last thing I want is to end up with compliance issues because I missed some state-level notification requirement. One question for the group - has anyone dealt with updating their business bank accounts during an address change? I'm wondering if banks require the IRS address change to be processed before they'll update business account addresses, or if they handle that independently. I want to make sure I can still receive important financial correspondence during the transition period. Thanks again everyone for sharing your experiences - this kind of real-world advice is so much more valuable than trying to decode IRS publications on your own!

When I was audited in 2022, I took a different approach than waiting to see if they'd hold my refund. I estimated what I might owe from the audit (added about 20% for safety) and adjusted my W-4 to have less withheld from my paychecks. This way, I wasn't giving the IRS an interest-free loan they might keep anyway. Then I set aside that money in a high-yield savings account. When the audit concluded, I had the funds ready plus had earned interest on it. Even if your audit results in zero additional tax, this approach gives you more control over your money.

I'm going through something similar right now and wanted to share what I've learned from my tax attorney. The IRS has something called an "offset" process where they can indeed hold your current year refund if there's an ongoing audit that might result in additional taxes owed. However, there are a few key factors that influence this decision: 1. **Timing matters**: If your audit is in the early stages (just requesting documents), they're less likely to hold your refund compared to audits nearing completion where deficiencies are already identified. 2. **Amount at stake**: Larger potential tax liabilities increase the likelihood of a refund hold. 3. **Your compliance history**: If you have a clean record and respond promptly to audit requests, they may be more lenient. My attorney suggested contacting the examining agent directly (their info should be on your audit notice) to ask specifically about refund processing. Also, consider filing Form 911 (Request for Taxpayer Advocate Service Assistance) if the refund hold creates financial hardship - the TAS can sometimes expedite resolution. One last tip: keep making your quarterly estimates as normal unless your audit reveals you've been significantly underpaying. Better to stay current on the current year while sorting out the past!

Watch out for the contribution limits! For 2024, individual coverage limit is $4,150 and family coverage is $8,300, plus an extra $1,000 if you're 55+. Your employer contributions AND your personal contributions both count toward these limits.

Great question! I had the same confusion when I first started with HSAs. Your employer doesn't provide Form 8889 - that's a form you fill out yourself when filing your taxes. Since your W-2 shows the $3,000 in Box 12 with code W, you have everything you need from your employer. Just to add to what others have said - make sure you keep good records of any medical expenses you paid for with your HSA throughout the year. While you don't need to submit receipts with your tax return, you should keep them for your records in case the IRS ever asks. The Form 8889 will ask about any distributions you took from your HSA, so you'll want to have that information handy too. If you used tax software last year, it probably walked you through Form 8889 without you even realizing it was a separate form. Most tax prep software will automatically generate it based on the HSA information you enter.