23 Is anyone else annoyed that tax software doesn't make it clearer when you're going to owe? Last year I filed through TaxSlayer and it wasn't until the very end that I realized I owed the state $1800. Wish there was a warning earlier in the process.

I've been through a similar situation with unpaid state taxes, and I'd strongly recommend not waiting until you file your 2024 return. Here's why: First, the penalties and interest compound daily, so every day you wait costs you more money. Second, your 2024 state refund won't automatically offset your 2023 debt - you'd have to manually apply it, and by then you could owe significantly more. My advice: Call your state tax agency immediately and request a payment plan. Most states are very reasonable about this, especially if you're proactive. You can often get plans for as low as $50-75/month depending on your financial situation. Some states will even waive penalties if it's your first time owing and you set up a plan quickly. Don't let this stress eat at you - the sooner you address it, the more options you'll have. I waited too long once and ended up paying almost double in penalties what I originally owed in taxes. Learn from my mistake!

23 Question for anyone who's dealt with this before - does it matter how long after the death you sell your share? I'm in a similar situation but it's been nearly two years since my mom passed and my brother just now wants to buy my portion of her house. Does that change anything tax-wise?

This is really helpful information everyone! I'm dealing with a similar inherited property situation and had no idea about the stepped-up basis concept. One thing I'm curious about though - if multiple siblings inherit a property and one buys out the others like in the original post, does each sibling report their individual sale separately? Or is there some kind of combined reporting required since it's technically one property being transferred within the family? Also, are there any special considerations when the buyer is a family member versus selling to a third party?

As someone who recently went through this process, I want to emphasize how important it is to double-check your banking information before filing. I made the mistake of using my old routing number from a credit union I had left months earlier. What saved me was that I caught the error within about 18 hours of e-filing and was able to call the IRS immediately. The agent was able to update it because my return hadn't entered processing yet, but she warned me that I had maybe a 6-hour window left before it would be too late. For anyone in a similar situation - don't wait! If you realize you made an error with your banking info, call that Refund Inquiry Unit number (866-829-1954) as soon as possible. The difference between getting your refund in 2 weeks versus 6+ weeks really comes down to catching it in those first 24-48 hours.

As someone who moved to the US recently myself, I completely understand your confusion about this process! The IRS website really doesn't make it clear at all. Here's what I've learned from experience and this discussion: **For your current situation:** If you've already filed your 2024 return, immediately check the "Where's My Refund" tool on irs.gov. If it shows "Return Received" (not "Refund Approved" or "Processing"), you might still have a narrow window to update your banking info by calling the Refund Inquiry Unit at 866-829-1954. Act within 24-48 hours of filing if possible. **If you haven't filed yet:** Include your correct new banking information on your tax return when you file - this is by far the easiest approach. **About timing restrictions:** You actually do have the right to provide banking information, but only when initially filing. The IRS doesn't have a legal obligation to allow updates after filing, which is why their system is so rigid about this. **If money goes to your old inactive account:** Don't panic! The bank will reject the deposit and return it to the IRS within 1 business day. The IRS will then automatically mail you a paper check to your address on file (just make sure your address is current with them). This adds about 4-6 weeks to the timeline, but you won't lose your money. The system definitely feels outdated compared to other countries' tax systems, but at least there are backup processes in place. Hope this helps clarify things for you!

Does anybody know if the "undetermined term" status affects the actual tax rate you pay? Or is it just an issue of which form/section to report it on? My broker labeled a bunch of my crypto transactions this way and I'm trying to figure out if it actually matters for how much tax I owe or just for paperwork purposes.

I've dealt with this exact situation and want to emphasize something important: when you have undetermined term transactions, the IRS expects you to make a reasonable effort to determine the actual holding period rather than just defaulting to short-term treatment. Here's my recommended approach: First, gather any records you can find - old statements, trade confirmations, even bank records showing when funds were transferred for purchases. Second, if you're missing some information, create a spreadsheet documenting what you know and your methodology for estimates. Third, when in doubt, consider using Form 8949 with the appropriate adjustment codes to explain your situation. One thing I learned the hard way: if you report everything as short-term just because it's "undetermined," you might overpay taxes significantly. The IRS won't refund the difference if you later find records showing they were actually long-term holdings. It's worth spending the time upfront to get this right, especially given the substantial difference in tax rates between short-term and long-term capital gains. Also, keep detailed records of your research process in case of questions later. The IRS appreciates good faith efforts to comply accurately.

I've used both over the years. My CPA handles my normal taxes, business filings, and helps with planning. Only needed a tax attorney once when I got hit with an incorrect $42k IRS bill for unreported income (was actually my ex-wife's but they came after me). Attorney cost more but had the expertise for that specific legal situation. If you're just trying to get your taxes done right and plan properly, start with a CPA. If the IRS is threatening liens, levies, or criminal charges, then you need an attorney. A good CPA will tell you when it's time to bring in legal help.

Having dealt with both CPAs and tax attorneys, I'd recommend starting with a CPA for your situation. Small business and rental income complications are exactly what CPAs handle daily - they'll help you structure your deductions properly and identify any potential audit red flags before they become problems. The key is finding a CPA who specializes in small business taxation rather than just individual returns. They can set up proper bookkeeping systems, advise on business structure (LLC vs S-Corp, etc.), and handle the rental property depreciation correctly. This proactive approach often prevents the issues that would require a tax attorney later. Tax attorneys are definitely worth their fees when you're facing IRS enforcement actions, potential criminal issues, or complex estate/trust matters. But for maximizing deductions and staying compliant with business/rental income, a good CPA will save you money and keep you out of trouble. If problems do arise later, your CPA can work with a tax attorney as needed.