I went through this exact same situation about 8 months ago and I totally get the stress you're feeling right now! That 14-digit control number had me convinced I was in major trouble with the IRS, but it really is just their way of tracking your specific case. What helped me the most was breaking it down into steps: First, I read the letter multiple times (I know, boring but necessary). Then I organized all my tax documents for that year before even thinking about calling. When I finally did get through to someone, the conversation was way smoother because I had everything ready. The wait times are absolutely brutal, but here's a trick that worked for me - I called right at 7 AM on a Tuesday and only waited about 15 minutes. Apparently that's one of their least busy times. Also, don't be discouraged if you have to call back - sometimes you get someone who's more helpful than others. In my case, it turned out they just needed verification of some 1099 income that looked different from what my employer reported. Took about 10 minutes to sort out once I had the right person on the phone. You've got this - it's way less scary than it seems! 💪

I'm dealing with this exact situation right now too! Got my letter with the 14-digit control number yesterday and immediately started panicking. Reading through everyone's experiences here has been such a relief - sounds like it's really just their internal tracking system and not the end of the world like I was imagining! 😅 I love the tip about calling right at 7 AM - definitely going to try that tomorrow morning. Has anyone had success with the online account option on the IRS website? I'm wondering if I can find any additional info there before making the call. Also planning to gather all my tax docs tonight so I'm prepared. Thanks to everyone sharing their stories - it's so helpful to know we're not alone in feeling overwhelmed by these letters! The tax system really could use some plain English translations 📝

Has anyone used a third-party service to help with the ERO application? I'm in a similar boat and wondering if it's worth hiring someone or if I should just apply directly.

I actually went through this exact situation about 2 years ago with a DUI from 6 years prior. I was terrified that it would prevent me from getting ERO status, but it turned out to be much less of an issue than I expected. The key things that helped me were: 1) Being completely honest on Form 8633 - I disclosed everything upfront, 2) Including a brief letter explaining the circumstances and what I learned from the experience, and 3) Emphasizing my clean record and professional conduct since then. My application was approved without any follow-up questions. The IRS seems much more concerned with recent issues or patterns of behavior rather than isolated incidents from several years ago. Your 9 years of experience as a tax preparer with an active PTIN actually works strongly in your favor - it shows you've been trusted with tax preparation responsibilities and maintained good standing. Don't let the DUI stop you from pursuing your business goals. Just be honest, provide complete information, and let your professional track record speak for itself.

This has been an incredibly educational thread! As someone relatively new to partnership taxation, I've been struggling with mineral royalty reporting and this discussion has really clarified things for me. One area I'd love more insight on is the documentation aspect. Several of you mentioned including detailed supporting statements, which makes perfect sense for defending the position. But I'm wondering about the practical mechanics - do you attach these as separate PDF schedules to the electronic filing, or do you include them as text in the "Additional Information" sections of the tax software? Also, I'm curious about how you handle the partnership agreement language. Do you recommend that clients include specific language about the passive nature of royalty activities in their partnership agreements, or is this more of a facts-and-circumstances determination based on actual operations? Finally, for those dealing with multiple properties across different states, do you find any states have particularly aggressive positions on partnership-level taxation of royalty income that might influence the federal reporting strategy? Thanks to everyone who has shared their expertise here - this is exactly the kind of real-world guidance that makes all the difference in building confidence with these complex returns!

This discussion has been incredibly thorough and helpful! As someone who handles a mix of partnership returns including several with mineral interests, I really appreciate seeing the consensus around treating passive royalty income as portfolio income on Schedule K rather than business income on page 1. One practical question I haven't seen addressed - for partnerships that receive multiple 1099-MISC forms for royalty payments throughout the year, do you typically reconcile these to a separate royalty income schedule on the return? I've been summarizing them in a supporting statement, but I'm wondering if there's a preferred method for showing this reconciliation, especially when dealing with partnerships that have dozens of small royalty payments from different operators. Also, has anyone dealt with the situation where a partnership receives both royalty payments and bonus payments for new leases in the same year? I assume the bonus payments would also be treated as portfolio income, but I wanted to confirm this treatment is consistent with the royalty income approach. The revenue ruling reference and software recommendations have been particularly valuable - it's clear I need to upgrade my research resources and possibly consider more specialized tax software as this area of my practice grows. Thanks to everyone for sharing their real-world experience!

Just wanted to chime in that the IRS online account only shows the last few years - completely normal. Had a similar panic when I could only see back to 2020. For peace of mind until you can call, check if you have any old tax prep software files on your computer. Sometimes they save copies of previous returns. Also, check your email - if your ex e-filed, there might be confirmation emails from TurboTax or whatever software you used.

I went through almost the exact same situation after my divorce two years ago! The stress of not knowing what was actually filed is horrible, but you're taking the right steps. A few things that helped me piece together my tax history: 1. Check if you have any old copies of tax software on shared computers - I found TurboTax files going back years that my ex had saved locally 2. Look through old bank statements for IRS refund deposits or payments - this can confirm which years returns were actually filed 3. If you have old pay stubs, compare your year-end totals to what should have been reported - this helped me spot a year where income wasn't properly reported The most important thing is getting those transcripts from the IRS to see your official filing history. Don't stress too much about the online account only showing recent years - that's completely normal. For your 2022 return, you can still e-file without the prior year AGI by using the PIN option or indicating you didn't file the previous year. The IRS will process it and you can sort out any discrepancies later. You've got this! It's overwhelming now but once you have the facts from the IRS, you'll know exactly what needs to be fixed.

Has anyone actually been audited for this type of issue? I accidentally had a similar situation last year but just left it alone. My contribution was coded for the wrong year but I took the deduction anyway on my taxes. It's been 18 months and nothing has happened. Maybe I'm living on borrowed time but wondering if the IRS actually cross-references these?

I went through almost the exact same situation last year with my SEP IRA! The key thing to remember is that this is an administrative error, not a true recharacterization issue. Since you made the contribution before the 4/15/24 deadline with clear intent for 2023, you have strong grounds to get this fixed. First, gather all your documentation - any emails or forms where you specified this was for 2023, bank records showing the timing, etc. Contact Fidelity immediately and explain the situation. They can reach out to your previous institution on your behalf to request corrected Form 5498 reporting. If the old advisor won't cooperate, you can file Form 4852 with the IRS as a substitute for the incorrect Form 5498. Include a detailed explanation and all supporting documentation showing your intent. The October deadline mainly applies to true recharacterizations between IRA types, but administrative error corrections can sometimes be handled even after that date. Don't amend your 2023 return yet - fight to get the coding fixed first. You legitimately made a 2023 contribution and deserve to keep that deduction. Time is of the essence though, so start making those calls tomorrow morning!