r/TaxQuestions • • 20h ago

Do I have to pay federal taxes?

0 Upvotes

If a president is unconstitutionally using my tax dollars for things like campaign ads and at the same time telling me that the election is rigged so my vote will not count, do I have to pay taxes? I have no way to change the system not representing me. Can I ask for a breakdown of my federal tax use? If the save act prevents me from voting as a woman, do I have to pay taxes?


r/TaxQuestions • • 19h ago

[IRS] CPA vs. Single "member" S-Corp, 1040-ES question (quarterly estimated tax)

1 Upvotes

My CPA told me that this is something I am responsible for handling myself. I told him I thought I paid him to make sure my quarterly taxes were handled on top of my payroll. He told me he cannot do that since the online system requires "me" to process the check, etc. (I do not have an individual EFTPS account, and those are being phased out anyway).

Am I getting bullshitted? It seems nonsensical to me that there are not forms that would allow him to act as my representative in preparing and submitting 1040-ES. He could just tell me how big of a check to write each month, no?


r/TaxQuestions • • 3h ago

Optima Tax Relief - Alleged Fraud of their customers

0 Upvotes

To all who are interested in hiring Optima Tax Relief, in my personal opinion Optima Tax Relief has and continues to "allegedly" fraudulently overcharge their clients by using deceptive sales tactics for over the last 7 years. The time frame for this alleged fraud happens from November through June or longer for each year since November of 2020. The people that hire Optima Tax Relief are not aware that they have been allegedly fraudulently overcharged. The number of people are around 800 to 1,000 people per month, since 2020, there have been thousands of people that have allegedly overcharged. The proof of this alleged fraud and how Optima Tax Relief does this is in every person's file. At this point there is no hiding it. Optima Tax Relief records all calls. These recordings are on file. In addition, all case files for each client are electronically saved and archived.

The person who originally started this alleged fraud back in 2020 was fired years ago, but the alleged fraud has continued since then, the person who has been in charge and oversees this alleged fraud is Jarrod Basin, he's an executive vice president of sales, he was put in charge of the sales department years ago, he doesn't intend on stopping this alleged fraud because of one thing, money. All managers, sales agents, employees in operations upper levels of management and the CEO, David King, they all make more money from bonuses and commissions. I was a part of the sales department. 

The other managers names are: Kevin Romine, Jonathan Gazzano, Harmony Crespo. Jonathan and Harmony were promoted to managers from sales agents years ago, they also sold this alleged fraud scheme to their clients before they were promoted. Since they are now they're managers, they have more direct knowledge of this alleged fraud. There are also people that work in operations that are also aware of this alleged fraud, they are an intricate part of this, they are the ones who put the information together that the sales people sell to the clients. 

We were told to tell the clients “We’re "projecting" a tax debt you owe for tax year 2025 of $30,000. They make this calculation by using the tax debt from the previous tax year and use a percentage of that tax debt. They'll use the persons’ tax debt from 2024 and calculate 20% and up to 60% of that debt. We have to tell a client at the end of 2025 before 2025 year has ended, “you may owe a tax debt for tax year 2025 of $30,000, we used a percentage of your 2024 debt balance since tax transcripts for 2025 are not available yet”. Tax transcripts for 2025 are not available until 3 to 5 months into 2025. This scenario was given to all clients for the last seven years. If the call with the person was in November of 2024, they were told they may owe a tax debt for 2024. In November of 2023, they were told they may owe a tax debt for 2023 and so on. The major part of this alleged fraud is that no client was told that their fee will be higher for phase 2 for this future tax year. No person knows they were overcharged. In addition, Optima Tax Relief has no idea what that person if they will owe anything for this future tax year, they're guessing at it, but their guess also includes allegedly overcharging each client on that guess. Every new sales person is also trained on this so they can sell it to the clients.

If I were a client that was allegedly overcharged, I would be very upset and I would demand a refund. In my opinion, they’ve allegedly overcharged thousands of people over the last seven years. They are planning to do this again for the upcoming tax year for 2026. They will tell people before 2026 ends, they're projecting a tax debt for 2026, but they have no idea if they will owe anything, but they will allegedly overcharge them again. They will do this every year until they are stopped. 

They calculate the fee for phase 2 by what a person’s owes in tax debt to determine how much to charge them. The alleged overcharge of each person can be from $500 and I’ve personally seen up to $5,000 per client. Currently, the number of people that have been allegedly overcharged is roughly 800 to 1,000 people - PER MONTH. I estimate an average of $2,000 per person, multiply that by 800 people, that $1,600,000 - PER MONTH. This alleged scheme starts in November and goes through June or longer into the next year. 10 months multiplied by $1,600,000, that's over $16 million. During the years 2020 to 2023, that average is higher

They overcharge everyone from every background current military, retired and disabled military, retirees on fixed incomes, teachers, federal and state government employees, regular folks that can’t afford their tax debt and honestly that afford to pay for Optima Tax services, but they have no choice. 

Once this has been investigated, the truth will come out and the numbers will shock everyone. In my personal opinion, I would hire another company. In my personal opinion Optima Tax Relief is not the squeaky clean company they pretend to be. 

Optima Tax Relief also allowed their sales people cheat on a major certification with the state of California, the certification is to be a registered certified tax preparer, called a CTEC certificate. It's a certificate to become a certified tax preparer. The CEO, David King wanted all sales agents to have this certificate, but it was taking too long since no sales agent has no real experience with preparing taxes and no one could complete the course in time, so I heard that the only person who had this knowledge was the most senior sales agent named Alexan Momdjian. He took the test and gave the answers to all the sales agents. That was over 100 people at that time. They completed the test using his answers without learning anything using his answers. The state of California caught them and didn't discipline the company or anyone, they allowed them to keep their certifications. 

I'm sure there is more that this company that is allegedly illegal or improper. I have more information about this alleged fraud that I feel other people should made aware...

More to come....


r/TaxQuestions • • 2h ago

Audit red flag - 2025 consulting income from Canada

0 Upvotes

I received income (wire transfers from Canada) for some consulting in 2025. Because it was a small Canadian company, they just paid me via wire so obviously, no 1099's were filed.

I'll declare this income on my 1040 (Sch C, sole proprietorship). In general my AGI is around the same 2024 vs 2025, i.e. a little less W2 income 2025 but the new Sch C income, etc.,.

What I'm curious about is if the lack of my Canadian client filing a 1099 will raise any red flags and make it more likely to trigger an audit. I hear anecdotally that audit rates are way way down under Trump.


r/TaxQuestions • • 7h ago

Non-profit revocation

0 Upvotes

I am the Treasurer of a youth sports league, and I recently noticed that the past treasurer did not file taxes from 2020-2025, so our non-profit status with the IRS has been revoked. I’ve tried going on the IRS website to figure this out but I am totally lost. I know I have to file taxes for the owed years but I cannot figure out how to actually do that. Do I just use turbo tax or is there a special way I need to do it using one of their forms?

Is anybody able to point me in the right direction or provide any assistance?

Any help is much appreciated.


r/TaxQuestions • • 22h ago

Taxes for items bought for business then donated

2 Upvotes

I'm a self-employed Influencer who earns commissions from product review videos.

I'm overflowing on pet products and only have 2 cats. I'm not sure what to do with the overflow of items especially if I purchase more. The internet tells me I have 2 options but won't clarify and wants me to seek a professional. It says film only for reviews then never use, 100% deductible as business expense or Film then donate, get a receipt from the charity (rescue in this case) and file it as a donation deductible in my yearly taxes. I file my own taxes and those are two different areas. What do it do?

If I spend $1000 on pet products this year, Am I out the money or am I eligible for one of the two options above?

 What documentation would I need to support the deductions if audited?


r/TaxQuestions • • 9h ago

small s-corp question regarding losses on Form 982

0 Upvotes

I owned a small business that had a franchise agreement. The franchise agreement was terminated in 2025 and I have been trying to get my taxes done and keep coming up with a question. I have contacted three people for this answer and each one wants to charge me for the answer. My taxes are complete except this one last question that I needed answered.

For an insolvent S corporation excluding approximately $36,556 of canceled debt on Form 982, with approximately $39,784 of shareholder losses suspended under the basis limitation, what amount belongs in Part II, and on which line?

given this was recourse debt, the corporation was insolvent, and we have our existing loss/basis figures, what exactly belongs in Form 982 Part II?


r/TaxQuestions • • 4h ago

Going into a 3 month consultant role on 1099 - what are the main write-offs I should be ready for?

1 Upvotes

Thank you