A recent caller has a $600,000 2025 tax bill, including $800,000 phantom income from wash sales. Obviously, this tax payer had significant non trading income. He used Turbo Tax to prepare taxes over the past decade. This self-serve program didn’t have the expertise to help him avoid wash sales. Since he didn’t want to face the huge tax bill, he just held off filing. Now in 2026, he has significant capital losses from trading, which are capped at $3,000 available to offset ordinary income. 90% of the year is gone and he hasn’t created a tax plan!

He does not want to use a professional because we are more expensive than Turbo Tax. A high-end tax resolution service is too pricey. We agree with controlling expenses, but sometimes you need the best service, which can come at a price. We were approaching the extension deadline, he had no plan, was running out of time, FTP (funds transfer pricing) and interest may be over $35,000 (and accumulating at $400/day!). He is 3 weeks away from an FTF penalty of $140,000.

His situation is complicated further that he is currently unemployed and borrowing from a HELOC for monthly bills. It seems he might be afraid to give up his family’s lifestyle.

But remember, THERE ARE ANSWERS! The IRS can be reasonable unless you ignore them. Wash sales are bad, but they can be managed. Please don’t hide your head in the sand. That won’t solve any problems. We can help you devise a strategy for your situation.

If you are just getting started, make a plan and then adjust as needed. If you are part way down the road, create a plan to deal with your situation with some choices for what to do as things change. If you are in trouble, please use experts to help.