The situation
Andrew and Lauren used tax software for years. Then they bought a rental house, had their first child and Lauren started freelancing on the side. An IRS notice about her 1099 income arrived the same spring.
What we did
We started with the letter, because that was what kept them up at night.
- Answered the IRS notice for them and had the proposed balance reduced to zero.
- Reviewed three years of returns and amended them to claim depreciation on the rental.
- Set up quarterly estimated payments for Lauren’s freelance income.
- Opened a 529 plan for their daughter and adjusted both W-4s.
The results
The amended returns brought back $6,400. The notice was closed with nothing owed, and their next return was finished in February with no surprise bill.
“We thought we were doing everything right. Having someone look at the whole picture paid for itself in the first month.”
