Just to add another option since people are discussing alternatives - I gave up on trying to do all this manually and just imported my 1099-B directly into TaxSlayer. There's an import function that's somewhat hidden: 1. Go to the Income section 2. Select "Import Data" 3. Choose your broker (Fidelity is supported) 4. Follow the login prompts It automatically categorizes everything, including the wash sales. Saved me hours of manual entry and math. You might need to pay for the premium version though - I don't think this feature is in the free version.

FYI - TurboTax handles 1099-B and Form 8949 reporting much better than TaxSlayer in my experience. I switched this year after having similar frustrations. They have a direct import feature that works with most brokerages, and they're much clearer about how to handle wash sales and basis reporting. Yes, it costs more, but when you're dealing with investment transactions, the extra guidance is worth it. They also have much better support if you get stuck.

Mine hit this morning! approved 2/5, deposit 2/7 with local credit union

I'm dealing with a similar situation but with federal refunds. Sometimes there can be additional processing delays when there's an adjustment made to your refund - the system might need extra time to verify the changes before releasing funds. Since your refund was "adjusted" (not just approved), that could explain the delay beyond the normal 48-hour window. The fact that you haven't received the explanation letter yet also suggests they might still be processing everything on their end. I'd definitely call tomorrow if nothing shows up - even with high call volume, they should be able to give you a status update on both the deposit and the adjustment letter.

Just wanted to add something important - when we had our ITIN rejected, we learned that timing matters! If you submit your W7 with your tax return during the peak filing season (February-April), the processing time can be much longer than the estimated 11 weeks. We resubmitted in June after our initial rejection, and got the ITIN in about 7 weeks instead of 11. If your tax situation allows for it (like if you're getting a refund or don't owe much), consider filing an extension and then submitting when the IRS isn't as swamped.

I went through this exact situation last year! The TAC verification route is definitely your best bet - I was terrified to mail my wife's original passport too. One thing I learned that might help: when you call for the TAC appointment, ask specifically about their ITIN verification hours. Some locations only do ITIN services on certain days or during specific time slots, so you want to make sure you're booking during those times. Also, bring copies of everything in addition to the originals. The agent will verify the originals but keep copies for their records. And definitely bring that rejection letter you received - it helps the agent understand exactly what went wrong the first time. The 11-week timeline is frustrating, but once you get that stamped W7 from the TAC, you're in much better shape. Just make sure your tax return is completely filled out and accurate before you go to the appointment, because they'll review both documents together.

The real question is: how likely is the IRS to come after you for a single $1,300 check? I'm not saying to evade taxes, but realistically the IRS is looking for bigger fish...they're understaffed and focused on larger amounts. Just sayin.

Just to add another perspective here - I work in banking and see this situation a lot. The method of receiving payment (cash vs deposit vs check cashing) really doesn't change your tax obligations. What matters is the substance of the transaction. If you performed work (helping with a move) and received payment for it, that's generally taxable income regardless of what anyone calls it or how you receive it. One thing I'd recommend is getting something in writing from your friend clarifying the nature of the payment. If it's truly a gift given out of friendship/gratitude with no expectation of services, document that. If it's payment for your time and labor helping them move, then be prepared to report it as income. The IRS looks at the economic reality of transactions, not just what people call them. Also worth noting - even if this particular transaction flies under the radar, establishing good tax compliance habits now will save you headaches later if your side income grows or if you face any kind of audit down the road.

Don't forget to check if either partner had a negative capital account before the final distribution! This can create unexpected tax consequences. If one partner's capital account went negative during operations (meaning they took out more than they put in plus their share of profits), that negative balance is treated as income to that partner when the partnership dissolves. Also, make sure you file Form 8594 (Asset Acquisition Statement) if the partnership is selling any assets as part of the dissolution. And don't forget to file Form 966 to formally dissolve the entity with the IRS.

One more thing - check if either partner had any unreimbursed business expenses (UBE) they paid personally. These can be reported on Schedule E of their personal returns rather than being treated as capital contributions on the K-1. This is often better tax treatment since capital contributions don't directly reduce tax liability but UBEs can.