This exact same thing happened to me last year! My 846 code showed $2,847 but only $1,961 actually deposited. I was panicking for days thinking the IRS made some huge mistake. Turns out I had completely forgotten about an old debt from my college days that went into default. The Treasury Offset Program had taken $886 to pay it off. The notification letter explaining the offset arrived about a week AFTER my refund deposited, which is why I was so confused at first. My advice would be to call the Treasury Offset Program at 800-304-3107 first thing Monday morning. They can tell you immediately if any portion was offset for debt collection. It's usually much faster than trying to reach the IRS directly, and they have access to all the offset information in real time. Also double-check your transcript for any 971 notice codes that might indicate an adjustment was made to your return. Sometimes those are easy to miss when you're focused on the 846 code. Really hoping it's just a bank processing issue and the full amount shows up when it posts!

I'm going through something very similar right now! My 846 code shows one amount but my bank is showing a pending deposit that's $600 less. Reading through all these responses has been super helpful - I had no idea about the Treasury Offset Program or that banks sometimes show partial amounts during pending. I'm definitely going to wait until my deposit actually posts before I start panicking, but if the full amount doesn't show up, I'll call that Treasury Offset number that Vince mentioned. The 800-304-3107 seems like it could save a lot of time compared to trying to get through to the IRS directly. Also going to go through my transcript line by line this weekend to look for any codes I might have missed. It's crazy how many different reasons there could be for a discrepancy like this. Thanks everyone for sharing your experiences - makes me feel less alone in dealing with this stress!

This is great advice from everyone! Just to add another perspective - I've been through this exact situation multiple times as both a taxpayer and working in tax preparation. The approach of keeping the appointment but only preparing the non-investment portions is definitely the way to go. What I'd also suggest is asking your dad to call the brokerage one more time before Friday to get a firm date on when the final documents will be available. Sometimes they can expedite delivery if you explain you have a tax appointment scheduled. Also, if your dad has last year's tax documents, bring those along to the appointment. The accountant can use them as a reference point to estimate this year's investment income, especially if his portfolio hasn't changed dramatically. This can help with planning and give a rough idea of his tax situation even while waiting for the final brokerage statement. One last tip - if the final statement ends up being significantly delayed (like into March), don't stress about it. Extensions are very common and completely normal. The IRS expects some taxpayers to need extensions due to delayed K-1s, corrected 1099s, and other late-arriving documents. It's much better to file correctly late than incorrectly on time!

I've been a tax preparer for over 15 years and this situation comes up constantly during tax season. You're absolutely right to be cautious about using preliminary statements - I've seen too many clients get burned by doing this. The differences between preliminary and final statements can be substantial. Just last week, I had a client whose preliminary 1099-DIV showed $2,400 in qualified dividends, but the final version came back with $1,850 qualified and $550 ordinary dividends due to late reclassifications from several mutual funds. Using the preliminary would have understated their tax liability by about $160. Here's my standard advice for this exact scenario: Keep the Friday appointment and have the accountant prepare everything they can without the investment income. Most professional tax software allows us to save returns in progress and easily update them later. This way your dad keeps his spot during the busiest time of year, and we can usually complete about 85-90% of the return. I always tell clients to bring any investment statements they have (even preliminary ones) so I can at least estimate the tax impact and give them a rough idea of what to expect. But I never file with preliminary documents - the risk of amendments and penalties just isn't worth it. If the final statement is delayed significantly, filing an extension is totally normal and doesn't increase audit risk. I probably prepare extensions for about 25% of my clients each year due to late K-1s, delayed 1099s, or other missing documents.

Thanks for all the detailed explanations everyone! I'm in a similar situation - my refund shows as issued on WMR but hasn't hit my account after 8 days. I've been hesitant to call the IRS because of the wait times, but reading about the trace process here makes it seem more straightforward than I expected. One question though - when you get the trace number, can you check the status online or do you have to call each time for updates? Also, has anyone noticed if certain banks are more prone to rejecting refunds? I bank with a smaller credit union and wondering if that could be part of the issue.

I just want to add my experience for anyone reading this thread - I went through the trace process earlier this year and it was actually much smoother than I expected. My refund showed as issued but never arrived after 10 days. Called the IRS, waited about 45 minutes on hold, and the agent immediately started the trace process over the phone. Got trace number TR-19847562 that same day. Turns out my bank had flagged the deposit as suspicious because it was larger than my usual deposits. The trace helped the IRS agent identify this issue quickly, and they were able to coordinate with my bank to release the funds. The whole thing was resolved in about 2 weeks. My advice: don't hesitate to request a trace if you've waited the proper timeframe - it's a legitimate process and the agents are trained to handle these situations efficiently.

This is such a helpful thread! I'm dealing with a similar situation with my parents. One thing I'm curious about - what's the typical timeline for setting up these trusts? My dad is 78 and in good health, but I'm wondering if there are any age-related considerations or if it's "too late" to start this process. Also, are there minimum asset thresholds where trusts actually make financial sense after accounting for setup and ongoing administration costs?

As someone who recently went through estate planning with my elderly parents, I wanted to share a few practical tips that might help others in similar situations: First, don't get overwhelmed by all the complex trust types mentioned here. Start with understanding your parents' specific goals - is it avoiding probate, minimizing taxes, protecting assets, or providing for grandchildren? This will help determine which strategies are most relevant. Second, consider getting a professional estate tax calculation done before diving into complex irrevocable structures. Many families think they need sophisticated trusts when simpler solutions might work just as well. With the current high exemption levels ($12.92M per person), many estates won't even owe federal estate tax. Third, if your parents do move forward with trusts, make sure they understand the practical implications. I've seen families create irrevocable trusts without fully grasping that they can't easily change their minds later. Also, factor in the ongoing costs - trustee fees, tax preparation, and administrative expenses can add up over time. Finally, timing matters for some strategies. If your parents are considering charitable giving or have appreciated assets, there might be specific windows where certain trust structures are most beneficial. Don't rush, but don't delay indefinitely either. The key is finding the right balance of tax efficiency and practical management that works for your family's specific situation.

One practical thing to consider - are you planning to continue the business with Tony's heirs? If they inherited his 50% interest, you should review your operating agreement ASAP. Many partnership agreements have buy/sell provisions that trigger upon death. This could impact whether you even need to worry about the step-up basis if you're required to buy out their interest at the agreed value.

I'm sorry for your loss, Chris. This is a complex situation that requires careful planning beyond just the tax implications. One important point that hasn't been mentioned yet - you'll want to determine Tony's basis in his partnership interest at the time of death. His heirs will receive a stepped-up basis in their inherited partnership interest equal to the fair market value of that interest ($340,000 based on the 50% share of the $680,000 property value). However, this is separate from the partnership's election under Section 754. The stepped-up basis for the heirs applies to their partnership interest, while the Section 754 election creates a special basis adjustment for the partnership's assets. Also, consider the timing carefully. You have until the due date of the partnership return (including extensions) for the year of Tony's death to make the Section 754 election. But as others mentioned, check your operating agreement first - there may be mandatory buyout provisions that could change your entire approach. Given the complexity and the significant dollar amounts involved, I'd strongly recommend consulting with a tax professional who specializes in partnership taxation before making any elections or decisions.