mine just cleared yesterday after 4 weeks! there is hope yall!!

I've been dealing with code 0905 for about 2 weeks now. From what I've researched, it seems like they're doing some kind of internal review. I know the waiting is super stressful but from reading other posts here it sounds like most people get through it eventually. Keeping my fingers crossed for all of us! 🤞

I inherited money last year and completely forgot to mention it to my tax preparer. Should I be worried? Do I need to file an amended return?

Sorry for your loss, Yuki. Estate matters can definitely be overwhelming when you're still grieving. Everyone here has given you solid advice about the tax implications. Since you're in Texas and receiving proceeds from a house sale and savings accounts, you should be good on both federal and state taxes - no inheritance tax in Texas, and standard inheritances aren't taxable income to beneficiaries. One practical tip: when you do receive the money, keep all the documentation from the estate (distribution letters, any tax forms the estate files, etc.). Even though you likely won't owe taxes on the inheritance itself, having this paperwork will be helpful for your records and might be needed if you ever sell inherited assets in the future. Also, don't feel pressured to make any big financial decisions with the money right away. Take some time to process everything first. The money will still be there when you're ready to decide what to do with it.

What tax software are you using? Some programs like Drake or UltraTax have built-in diagnostics that can help identify balance sheet discrepancies.

One thing that often gets overlooked in partnership returns is how partner draws/distributions are recorded. Make sure any money the partners took out during the year is properly reflected in their capital accounts on Schedule L, line 21. Also double-check your beginning balances - if last year's ending balances don't match this year's beginning balances on Schedule L, that could be part of your problem. Sometimes there are prior year adjustments or corrections that need to be accounted for. Since you mentioned you're down to a $3,200 difference after finding that equipment issue, you're getting close! Look for smaller items like: - Accrued expenses that weren't recorded - Prepaid expenses - Any year-end journal entries from the accountant - Bank fees or interest that might not have been entered Don't give up - that remaining difference is definitely findable!

I missed reporting a 1099-B last year and the IRS actually adjusted my refund automatically. They sent me a notice saying they had information that didn't match my return, showed the calculation, and reduced my refund by the appropriate amount. No penalties since the difference was under $1000. I didn't even have to file an amended return! Might not be the same for everyone but thought I'd share my experience.

I'm dealing with something similar but mine's a bit more complicated - I forgot to include a 1099-R from an old 401k rollover that had taxes withheld. The additional tax owed is only about $45, but I'm worried because it involves retirement account reporting. Based on what everyone's saying here, it sounds like waiting for the original refund to process first is the safer bet for small amounts. My concern is whether retirement account discrepancies get flagged differently than regular dividend income. Does anyone know if 1099-R matching happens on the same timeline as other 1099 forms? Also really appreciate the practical advice from the tax preparer - knowing that the matching typically doesn't happen until late summer gives me some peace of mind about the timing.

Watch out if you're using TurboTax to file! I had this exact situation last year and TurboTax incorrectly tried to make me pay taxes on the ENTIRE distribution, not just the earnings. Had to manually override it by entering the taxable amount exactly as shown on the 1099-R instead of letting TurboTax calculate it.

This is such a common source of confusion! I went through something similar last year and want to add a few practical tips that helped me: 1. Double-check your 1099-R box 2a (taxable amount) - it should only show the earnings portion, not your full contribution amount. If it shows the full amount, your brokerage may have made an error. 2. Keep detailed records of the timeline - the fact that you requested the return of excess contributions before your extended filing deadline (you filed in July 2023) is crucial for confirming this gets reported on your 2023 return. 3. If you're using tax software and it's giving you trouble with the PJ code, try entering it as "other retirement distributions" rather than letting it auto-categorize. This often bypasses the software's incorrect assumptions about Roth distributions. The key thing to remember is that since you corrected the excess contribution before filing your 2022 return, it's treated as if the contribution never happened for 2022 tax purposes. That's why everything gets reported in 2023 - the year the actual distribution occurred. Also worth noting: save all your documentation about this transaction. The IRS sometimes sends automated notices about retirement distributions, and having your paperwork organized will save you headaches if you need to respond to any correspondence.