Does anyone know if foreign dividend stocks have different reinvestment tax rules? I have some Canadian dividend stocks and I'm not sure if the tax treaty affects how reinvested dividends are taxed.

Just wanted to add a quick tip for anyone dealing with this - make sure you keep good records of your dividend reinvestment transactions! I learned this lesson after scrambling during tax season when I couldn't figure out which shares were purchased with cash vs. dividends. Most brokerages will show this on your monthly statements, but I started keeping a simple spreadsheet tracking: date, stock symbol, dividend amount, number of shares purchased, and price per share. Takes literally 2 minutes each quarter when dividends hit, but it's been a lifesaver for tax prep. Also, if you're using tax software like TurboTax, they can usually import your 1099-DIV directly from most major brokerages, which automatically includes your reinvested dividends. Just double-check that the amounts match what you actually received!

I'm going through something similar right now. Did you write your Social Security number on your check when you sent the payment? I found out that if you don't include your SSN and tax year on the check, sometimes they have trouble applying it correctly.

This is exactly what happened to me last year! The CP503 is definitely more serious than the CP14, so you're right not to ignore it. Here's what I learned from my experience: First, gather ALL your payment documentation - the canceled check, bank statements showing it was cashed, and any payment confirmations you have. The IRS will need specific details like the exact date the check was processed and the check number. When you do reach someone at the IRS, ask specifically for a "payment tracer" - this is their internal process for tracking down misapplied payments. In my case, they had applied my payment to a different tax year because of a processing error on their end. One thing that really helped me was keeping detailed notes of every call - date, time, agent's ID number, and what they told me. If you get disconnected or need to call back, this information can help the next agent pick up where you left off. Also, if they do find the payment was misapplied due to their error, make sure to request that any penalties and interest be removed since it wasn't your fault. They can do this, but you have to specifically ask for it. Don't panic - this is fixable, it just takes persistence to get through to the right person who can trace your payment!

Just wondering - did the state notify you when they applied your overpayment to a different year? We had something similar happen but never received any communication. Only discovered it when preparing for this year's filing.

This is a common issue that many businesses face! Since you're on cash basis accounting, the journal entry suggested by others is correct - you'll want to debit your tax expense account and credit the franchise tax receivable to remove it from your balance sheet. One additional tip: consider setting up a monthly or quarterly reconciliation process for your tax accounts to catch these situations earlier. States often apply credits and make adjustments without notification, so regular review of your receivables against actual refunds received can help identify discrepancies before they become bigger accounting headaches. Also, make sure to keep detailed documentation of the state's communication about where they applied your overpayment. This kind of supporting documentation is invaluable if you ever face questions about the adjustment during an audit or review.

I'm dealing with a very similar situation right now - sold my consulting business in January and the new owners have been completely unresponsive about filing Form 8822-B. I've been getting IRS notices for their quarterly payroll taxes and it's been keeping me up at night worrying about potential liability. Reading through all these responses has been incredibly reassuring. It's clear this is a common problem and there are established ways to resolve it even when the new owners won't cooperate. I'm particularly encouraged by the success stories from @StarSurfer and @Adriana Cohn with sending comprehensive documentation packages directly to the IRS. One thing I want to add based on my research - if anyone is dealing with this situation, make sure to keep copies of ALL correspondence you receive from the IRS, even if it's meant for the new owners. This creates a paper trail showing when you started receiving notices for periods after your sale date, which helps establish the timeline and your proactive efforts to resolve the issue. I'm going to follow the approach several people have outlined: gather my Asset Purchase Agreement, final tax returns, state transfer documentation, and send it all via certified mail with a detailed cover letter explaining the ownership change. It's reassuring to know that even without the 8822-B being filed, the IRS has procedures to handle these situations when you provide proper documentation. Thanks to everyone who shared their experiences - it's made what felt like an impossible situation seem much more manageable!

I'm going through this exact nightmare right now - sold my digital marketing agency in September and the buyers completely ghosted me when I asked about filing Form 8822-B. I've been getting IRS notices for their employment taxes and business income tax obligations, and honestly it's been one of the most stressful experiences of my life. What's really helped me sleep better after reading everyone's advice here is understanding that this is actually a procedural issue with established solutions, not some unique disaster. The consistent theme seems to be that comprehensive documentation sent directly to the IRS can resolve this even when the new owners are uncooperative. I'm putting together my documentation package this weekend - Asset Purchase Agreement with transfer dates highlighted, my final business tax returns, state registration transfer proof, and a detailed cover letter explaining the timeline. Planning to send it certified mail and also fax a copy to create multiple touchpoints with the IRS. One thing I learned from my CPA is to include a specific statement in the cover letter requesting that all future correspondence related to post-sale periods be directed to the new responsible party, and to provide their business address from the sale agreement. This gives the IRS an alternative address to use even without the 8822-B being filed. Thanks to everyone who shared their experiences - knowing that others have successfully resolved this exact situation makes it feel manageable rather than hopeless. Will definitely update this thread once I hear back from the IRS!

4 Don't forget that for the 2025 tax year, you can only deduct charitable contributions up to 60% of your adjusted gross income for cash donations to public charities like churches. If your donation is larger than that, you can carry forward the excess for up to 5 years. Also, inheritance itself isn't taxable income at the federal level, but if the house appreciated in value between when you inherited it and when you sold it, you might owe capital gains tax on that growth. The charitable donation might help offset some of that tax liability.

Just wanted to add something important that I learned the hard way - if you inherited the house and then sold it, make sure you understand the "stepped-up basis" rules. When you inherit property, your cost basis is typically the fair market value on the date your grandmother passed away, not what she originally paid for it. This means if the house was worth $200k when you inherited it and you sold it for $205k, you'd only owe capital gains tax on that $5k difference, not on your grandmother's original purchase price. This can make a huge difference in your tax liability and might affect how much you want to donate. Also, since you're planning to donate 10% as a tithe, keep in mind that regular tithing throughout the year can be a good tax strategy if you're consistently over the standard deduction threshold. Many people bunch their charitable giving into alternating years to maximize the tax benefit.