This is a complex situation but definitely fixable! Here's what I'd recommend as your action plan: 1. **Contact the original Roth IRA provider first** - Even if you don't have statements, they're required to keep records for years. Request a complete contribution and earnings history from when the account was opened until it was closed in 2021. 2. **File Form 8606 for 2018** if you haven't already - Since that $7,300 wasn't deducted, you need to establish basis to avoid double taxation later. Better to pay the $50 late filing penalty now than deal with bigger problems during conversion. 3. **Consider a strategic Roth conversion** - Once you have the contribution/earnings breakdown, you can convert the entire traditional IRA back to Roth. You'll only pay taxes on: (a) any earnings from the original Roth that lost tax-free status when rolled over, and (b) the growth that occurred in the traditional IRA since 2021. 4. **Don't rush this** - Take time to get accurate records and possibly consult a tax professional who specializes in retirement accounts. The tax implications of getting this wrong could be significant. The good news is that a large portion of your $41K is likely contributions that can convert tax-free. Getting proper documentation is key to minimizing your tax hit.

One thing that might help speed up the record-gathering process is to check if you have any old tax documents that could fill in the gaps. Look for Form 5498s from the years between your last statement (2017) and the rollover (2021) - your tax preparer might have copies even if you don't. Also, when you contact Charles Schwab, ask specifically about their "account reconstruction" services. Many major brokerages can recreate historical account summaries even when you don't have all the paperwork. They might be able to tell you exactly how much of that $33K was principal vs. gains when it came in. Before you make any moves, I'd strongly suggest running the numbers on what the tax hit would be under different scenarios. Sometimes it makes sense to do a partial conversion over multiple years to stay in lower tax brackets, especially if you're dealing with a substantial amount in taxable gains.

17 This happened to me with a different payroll company last year. If you're filing your taxes soon and don't want to wait for this to get resolved, you can use the information from your physical W-2 and attach Form 4852 (Substitute for Form W-2) to your tax return. You'll need your last pay stub from ADP to verify the information. This puts the issue on record with the IRS and allows you to file on time even if ADP is dragging their feet on fixing their mistake.

This is a serious compliance issue that unfortunately happens more than it should when companies switch payroll providers. As a tax professional, I've seen this exact scenario multiple times with ADP and other major payroll companies. Here's what I recommend for immediate action: 1. **Contact your former employer's HR department first** - they have the strongest leverage with ADP since they were the client. ADP is still legally obligated to correct W-2 reporting errors regardless of current client status. 2. **Document everything** - keep records of all your attempts to contact ADP, including dates, times, and any reference numbers. This creates a paper trail if you need to escalate. 3. **File a complaint with the SSA** if ADP doesn't respond within a reasonable timeframe. You can report employers who fail to file W-2s at ssa.gov/employer/ssnv.htm. 4. **Consider involving your state's labor department** - many states have regulations about timely W-2 reporting and can put additional pressure on ADP. The fact that this affected 35 employees makes it a significant violation. ADP faces penalties of $50-$280 per W-2 for late or missing filings, so they should be motivated to fix this quickly once properly notified. Don't wait too long to address this - while you can file with Form 4852 as others mentioned, it's much cleaner to get the actual W-2 properly reported to the government systems.

I'm currently dealing with this exact same situation! My transcript updated with a 570 code about 9 days ago with no 971, and as someone who's also new to navigating the US tax system, I completely relate to feeling overwhelmed by all these codes and the uncertainty they create. What's been incredibly reassuring after reading through everyone's experiences here is seeing such a consistent pattern - standalone 570 codes (without 971) seem to have a really strong track record of resolving automatically within 2-4 weeks. The key insight that keeps coming up is that when the IRS actually needs documentation or has serious concerns, they typically generate that 971 notice code immediately alongside the 570. I've definitely been guilty of checking my transcript way too frequently (probably daily despite promising myself I wouldn't!), but it's so comforting to see how many people have been through this same anxiety and uncertainty and had positive outcomes. The automated verification flags seem to be the new normal this filing season, but thankfully most people are reporting that they clear up without requiring any action from us. Coming from a different tax system where processes were much more straightforward and predictable, this waiting game and trying to decode what's happening behind the scenes is definitely stressful. But based on all the shared experiences in this thread, it really sounds like we're just caught up in routine internal reviews rather than anything serious. Thanks for starting this discussion - it's been so helpful to see that we're not alone in navigating this confusing process. The waiting is definitely the hardest part, but seeing all these success stories gives me hope that our situations will resolve soon too!

I'm going through this exact same situation right now! My transcript updated with a 570 code about 3 days ago with no 971, and as someone who's also trying to navigate the US tax system coming from a different country, I completely understand that feeling of being lost in all these codes and numbers. What's been really reassuring after reading through all these shared experiences is seeing how consistently standalone 570 codes seem to resolve automatically within 2-4 weeks. The pattern that keeps emerging is so clear - when there's no 971 code alongside the 570, it typically means they're doing an internal review that doesn't require any action or documentation from us. If they actually needed something, that 971 notice code would usually appear right away. I've definitely been guilty of checking my transcript way too frequently (probably every day despite telling myself to be patient!), but seeing all these success stories from people who've been in our exact situation is really helping calm my nerves. The automated verification processes seem to be much more common this filing season, but the good news is that the vast majority are clearing up without any taxpayer intervention needed. Coming from a tax system that was much more straightforward and predictable, this whole waiting game and uncertainty is definitely stressful. But based on everyone's experiences here, it sounds like we're likely just caught up in routine processing delays rather than anything serious. Thanks for starting this thread - it's been so helpful to see we're not alone in trying to decode this confusing system! Hoping your 570 clears soon.

Just wanted to add from personal experience - my now-spouse and I were in almost this exact situation 2 years ago. We decided to get legally married but maintained separate households because of kids and custody schedules. We had to switch from both filing HOH to married filing jointly, and honestly, our tax situation actually improved slightly. The higher standard deduction and more favorable tax brackets for joint filers offset what we lost from HOH status. Plus, tax preparation was so much simpler doing one joint return instead of two separate ones. Sometimes the tax code actually works in your favor!

This is a really common misconception! Once you're legally married, the IRS considers you married for the entire tax year, regardless of when during the year you got married or your living arrangements. You'll need to choose between Married Filing Jointly or Married Filing Separately - you can't both file as Head of Household. The "considered unmarried" exception that allows married people to file HOH has very strict requirements, including living completely apart from your spouse for the last 6 months of the tax year. Since you mentioned spending kid-free weekends together, this would disqualify you from that exception. However, I'd strongly recommend running the numbers before making any decisions! With your income levels and dependents, Married Filing Jointly might actually save you money compared to your current HOH filings. The joint standard deduction is essentially double the single amount, and you might benefit from more favorable tax brackets and other married filing benefits. Many couples are surprised to find that the "marriage penalty" isn't as bad as they expected, especially with similar incomes.

You can actually generate Form 1098 without expensive software! The IRS provides free fillable forms on their website that you can complete and print. Just go to irs.gov and search for "Form 1098 fillable." You'll need to manually enter the borrower's information, SSN, the total interest they paid you, and your information as the lender. If you want something more automated, there are also inexpensive online services like TaxAct or FreeTaxUSA that can generate 1098s for under $20. Much cheaper than QuickBooks if you're only doing one seller-financed property. Just make sure you keep good records throughout the year - track each payment showing principal vs interest breakdown. I created a simple spreadsheet with columns for payment date, total payment, principal portion, and interest portion. Makes filling out the 1098 much easier at year-end!

Great comprehensive advice everyone! As someone who's been through this maze multiple times with different seller-financed properties, I'd add one more crucial point that often gets overlooked - make sure you're charging at least the Applicable Federal Rate (AFR) for interest, or the IRS may impute additional interest income to you. The IRS publishes AFR rates monthly, and if your interest rate is below the AFR for the month you made the loan, they can treat the difference as additional taxable income to you AND as a gift to the buyer (which could trigger gift tax issues if it's significant). I learned this the hard way on my first seller-financed deal where I was being "generous" with a below-market rate. My CPA caught it during review and we had to amend some filings. Now I always check the AFR before setting terms - you can find the current rates in IRS Revenue Rulings or on their website under "Applicable Federal Rates." This is especially important for family transactions or situations where you might be tempted to offer a really low rate to help the buyer qualify. The tax implications can end up costing both parties more than just charging a market rate from the start.