Has anyone successfully gotten this fixed going forward without getting HR involved? My company's HR is outsourced and practically impossible to reach.

I went through this exact same issue about 6 months ago! What worked for me was being very persistent with documentation. I created a folder with: 1. Screenshots of all my paystubs showing the incorrect local tax withholding 2. My lease agreement proving my home address 3. Photos of my home office setup with timestamps 4. A letter from my manager confirming I'm 100% remote The key was making it crystal clear that this wasn't just a temporary work-from-home situation - I was hired as a remote employee and have never worked from their office location. When I presented all this to HR, they couldn't really argue with the documentation. They fixed my withholding within two pay periods. For the back taxes, I had to file a non-resident return with the city that had been collecting my taxes incorrectly, but I got about $1,400 back within 8 weeks. Pro tip: If your HR pushes back, ask them to show you the specific tax law or company policy that requires withholding taxes for a location where you don't physically work. Most of the time they can't produce anything because there isn't a valid legal basis for it.

Your instincts are absolutely right to be suspicious about this. I've been filing taxes for over 15 years and have never had a preparer ask to keep copies of birth certificates, report cards, or utility bills. This is definitely NOT a standard IRS requirement. What's particularly concerning is that your preparer of 8 years is suddenly implementing this policy without a clear explanation. If this were truly a new IRS mandate, it would be widely publicized and you'd be seeing news about it everywhere. The IRS Publication 4134 (Due Diligence Requirements) outlines what tax preparers actually need to do for verification - it involves asking specific questions and completing checklists, not hoarding your personal documents. Most legitimate preparers will ask to SEE documents like SSN cards to verify numbers are correct, but keeping copies is excessive and creates unnecessary security risks. I'd suggest asking your preparer to provide the specific IRS publication or notice that requires this document collection. If they can't produce it, or if they give you vague answers about "new rules," that's a major red flag. Trust your gut on this one - it sounds like either your preparer is misinformed about requirements or is implementing their own overly cautious policy without properly explaining it to clients.

I'm a CPA and can confirm this is absolutely NOT an IRS requirement. Your tax preparer is either misinformed or implementing their own excessive policy. The IRS does require preparers to exercise "due diligence" when claiming certain credits like EITC or Child Tax Credit, but this means completing Form 8867 and asking specific questions - not collecting and storing your personal documents. What's actually required: Preparers should verify the accuracy of information you provide (like SSNs, names, ages) and document their verification process. This typically involves seeing documents to confirm details, not keeping copies. Red flags in your situation: - Birth certificates aren't required for standard dependent claims - Report cards have no relevance to tax filing - Utility bills for "proof of residence" isn't a standard requirement - No legitimate preparer should be hoarding copies of SSN cards I'd strongly recommend asking your preparer to cite the specific IRS regulation requiring this. When they can't produce it (because it doesn't exist), you'll know you need a new preparer. After 8 years of working together, he should be able to explain this policy change with actual documentation, not vague references to "new IRS rules." Trust your instincts - this is definitely not normal or required.

One thing I haven't seen mentioned yet is the potential impact of any energy-efficient improvements you've made over the years. If you installed solar panels, energy-efficient windows, insulation, or HVAC systems, you might have claimed federal or state tax credits for some of these improvements. The IRS has specific rules about how these credits affect your cost basis. Generally, if you claimed a tax credit for an improvement, you need to reduce your cost basis by the amount of the credit you received. For example, if you spent $20,000 on solar panels but got a $6,000 federal tax credit, only $14,000 would count toward your cost basis. This is easy to overlook when you're tallying up 27 years of improvements, but it can make a significant difference in your capital gains calculation. I'd recommend reviewing your old tax returns to identify any energy credits you claimed and adjust your improvement costs accordingly. Also keep in mind that some utility company rebates might need to be treated similarly - they could reduce the amount you can claim as a capital improvement. The documentation requirements for these adjustments are pretty strict, so make sure you have copies of both the original receipts and any credit/rebate documentation.

Just a heads up for everyone dealing with similar documentation challenges - I recently went through this exact process after 25 years in our home. One thing that really helped was creating a digital folder structure organized by year and type of improvement. I scanned all my old receipts and organized them into folders like "2010-Kitchen", "2015-HVAC", etc. Also wanted to mention that your homeowner's insurance company might have records that can help fill gaps in your documentation. When I called my insurance company, they had records going back decades showing when we increased our coverage due to major improvements like the deck addition and finished basement. These records included estimated values that helped me document improvements where I'd lost some receipts. Don't forget about any HOA assessments for capital improvements either - if your community did shared improvements like new roofing or siding that increased property values, those assessments might qualify as additions to your cost basis too. I found documentation for these in my old HOA meeting minutes and assessment notices. The key is being thorough now rather than scrambling if you get audited later. Good luck with your sale!

I went through almost the exact same situation when I sold my primary residence after moving out years earlier! The lack of receipts felt overwhelming at first, but I was able to piece together enough documentation to claim substantial basis adjustments. Here's what worked for me beyond what others have mentioned: Check if your county assessor's office has online records showing property characteristics over time. Many counties now digitize old assessment cards that might note "new kitchen," "updated bath," or "addition" from specific years. These are official government records the IRS readily accepts. Also, don't forget about warranty cards and product registrations. When we installed new appliances, windows, or major systems, we often registered warranties online or mailed in cards. Companies like Whirlpool, Pella, or Carrier sometimes keep these records for decades. Even if it doesn't show installation costs, it proves when major components were purchased. One strategy that really helped: I created a detailed timeline with supporting evidence for each improvement, then researched what similar work cost during those specific years using sources like RSMeans construction cost data or HomeAdvisor's historical pricing. The IRS accepts reasonable estimates when supported by this type of research. Remember, you don't need receipts for 100% of your improvements to make a significant difference in your capital gains. Even documenting half of what you did could save you thousands in taxes. The key is being thorough, reasonable, and well-documented with whatever evidence you can gather.

I work as a tax preparer and see this situation frequently! You're actually in a better position than you might think. The IRS Publication 523 specifically addresses situations where taxpayers don't have receipts for home improvements, and there are several accepted methods for reconstructing your basis. Here's my recommended approach: Start by creating a comprehensive inventory of all improvements with estimated completion dates. Then gather ANY supporting documentation you can find - even partial evidence helps. This includes old photos (check your phone's photo stream going back years), social media posts, emails mentioning the work, bank/credit card statements showing purchases at home improvement stores, and any checks written to contractors. For cost estimates, use reliable sources like Remodeling Magazine's annual Cost vs. Value reports from the specific years you did the work. The IRS generally accepts reasonable estimates based on market research when contemporary records aren't available. Pro tip: Focus on the improvements that added the most value - kitchen, bathrooms, roof, HVAC systems. Even if you can only document 60-70% of your actual improvements with solid evidence, that could still significantly reduce your capital gains tax. Most importantly, organize everything chronologically with a clear narrative of what was done when. The IRS appreciates taxpayers who make good faith efforts to reconstruct records systematically rather than just throwing out random numbers. Consider working with a tax professional who has experience with capital gains situations - the potential tax savings usually justify the cost of professional help.

The 941 Schedule B has caused me so many headaches! One thing I learned the hard way is that if you're a semi-weekly depositor and file Schedule B incorrectly, the IRS doesn't just send a nice reminder - they hit you with failure-to-deposit penalties. For the original question - the date that matters for Schedule B is 100% when employees have access to their funds (payday). I use ADP for payroll and they helped explain that I should list the payday date on Schedule B, not when I process payroll or when I make the deposit. Another tip - if you use the Electronic Federal Tax Payment System (EFTPS), it shows your tax payment history with "settlement dates." Don't use those dates on Schedule B either. Those are when the money moved, not when the liability was incurred.

I'm glad this thread cleared up the Schedule B confusion! As someone who handles payroll for multiple small businesses, I've seen this exact issue come up repeatedly. One additional point that might help others - make sure your payroll software is configured to report the correct payday dates, not processing dates, especially if you're generating any automated reports for tax purposes. I've found it helpful to create a simple spreadsheet tracking our actual paydays alongside deposit dates and due dates. This makes it much easier when completing Schedule B and helps avoid the confusion between these different dates. The key takeaway from everyone's responses is crystal clear: use the date employees actually receive their wages, period. Thanks to everyone who shared their expertise, especially the former IRS agent - that perspective was invaluable!