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.

Don't forget to check if the K-1s have any Section 199A(g) deductions as well, which is different from the regular QBI deduction. Some agricultural or horticultural partnerships include this, though it's less common with trading partnerships.

I just went through this exact situation with my brother's estate - he was also heavily into day trading through partnerships. After reading through all these responses, I want to add that you should also check if FreeTaxUSA is properly handling the QBI limitations for estates. Estates have different QBI rules than individual returns. The QBI deduction for estates is limited to the lesser of 20% of the qualified business income OR 20% of the estate's taxable income above the deduction for distributions to beneficiaries. This calculation can be tricky when you have multiple K-1s. Also, since your uncle passed in October, you're dealing with a short tax year which could affect how the QBI deduction is calculated. The software might not automatically adjust for this, so you may want to double-check the calculations manually or consult a tax professional who specializes in estate returns with partnership interests.

As someone who works in non-profit financial oversight, I want to add that there are actually whistleblower protections for employees who raise concerns about excessive executive compensation. The IRS has specific procedures for reporting potential "excess benefit transactions" at non-profits. If you genuinely believe your CEO's compensation violates the intermediate sanctions rules (which require compensation to be reasonable and properly approved), you can file Form 13909 to report suspected violations. The IRS takes these seriously, especially when there's a pattern of excessive compensation combined with poor employee benefits. However, I'd recommend first trying to work through your organization's governance structure - attending board meetings during public comment periods, or raising concerns through your employee representatives if you have them. Document everything and keep copies of those 990 forms. Sometimes just asking pointed questions about the compensation approval process can prompt boards to be more careful about their oversight responsibilities.

This is such an important discussion! I've been following non-profit governance issues for years, and what you're seeing is unfortunately common. Those massive fluctuations in "bonuses and incentives" often reflect poorly designed compensation structures that lack proper oversight. One thing I haven't seen mentioned yet is that the Form 990 also requires organizations to report whether they used a compensation consultant and whether they followed the three-part "rebuttable presumption" process. Look for Part VI, Section B on your organization's 990 - it asks specific questions about the approval process for executive compensation. If those boxes aren't checked "yes" or if the compensation committee included interested parties (like the CEO being present for their own compensation discussions), that's a red flag that proper procedures weren't followed. This information can be really valuable if you decide to raise concerns formally, because it shows whether the board followed IRS guidelines for justifying executive compensation. Also worth noting - many states have additional reporting requirements for non-profits beyond the federal 990. Your state attorney general's office might have additional resources for understanding and questioning non-profit compensation practices in your jurisdiction.

Some practical advice from someone who went through this: document EVERYTHING. Make a spreadsheet showing all expenses for the kids with dates and amounts. Gather bank statements, cancelled checks, receipts for big purchases, school records showing your address, medical records, etc. Even if you decide not to file an amended return, having this documentation ready will help if the IRS contacts you. And FYI - there's a 3-year statute of limitations for amending returns, so you do have some time to decide.

This is a really tough situation, and I can understand wanting to claim what you're legally entitled to while also not wanting to create unnecessary problems. One thing that might help is getting a consultation with a tax professional who can review your specific situation and documentation before you make any moves. From what you've described, if you truly were head of household, provided more than half the support, and the children lived with you for more than half the year, you likely have a valid claim. The key is having solid documentation to back this up - receipts for housing costs, utilities, groceries, medical expenses, school supplies, etc. Regarding penalties for your ex, the IRS typically distinguishes between honest mistakes and intentional fraud. If she genuinely believed she was entitled to claim the children, the consequences would likely be limited to paying back the tax benefits plus interest and possibly a 20% accuracy penalty. However, if the IRS determines it was willful fraud, penalties can be much steeper. Before filing an amended return, you might consider one more conversation with her, perhaps suggesting you both consult tax professionals to understand who actually qualifies. Sometimes having a neutral third party explain the rules can help avoid the dispute altogether. The $4,800 difference is significant, but so is maintaining a workable co-parenting relationship if possible.

The name change issue is definitely a major red flag here! I went through something similar after getting married - filed with my new name but SSA hadn't fully updated their records yet, which caused a 3+ month delay. The IRS basically puts your return on hold until they can verify your identity matches what's in the Social Security database. Here's what I'd recommend doing ASAP: 1) Call SSA at 1-800-772-1213 to verify your name change is properly recorded 2) Check both your return transcript AND account transcript - sometimes one updates before the other 3) Look for any mail from the IRS (sometimes verification letters get lost or look like junk mail) The "response date" is just their internal deadline but honestly means nothing - they're so backlogged they rarely meet their own deadlines anyway. A blank transcript after 6+ weeks with a recent name change almost always means identity verification issues. The good news is once they sort out the name mismatch, everything usually processes really quickly. I got my refund 4 days after they finally resolved my case. It's incredibly frustrating but hang in there - you're not alone in this mess!

I'm dealing with the exact same frustrating situation! Filed on March 8th, accepted immediately, but my transcript has been completely blank for over 7 weeks now. The "Where's My Refund" tool just keeps showing that generic "still being processed" message with no actual timeline or explanation. From everything I've researched (and I've been obsessively googling this), the "response date" is basically just an internal IRS deadline that they set for themselves - but honestly, they're so backlogged this year that those dates don't mean much. A blank transcript after this long usually indicates either your return is stuck in their massive processing queue OR something flagged it for additional review. The name change after marriage that you mentioned is probably the main culprit here! I've seen this issue come up repeatedly in forums - even after updating your name with Social Security, there can be significant delays before their database properly syncs with the IRS system. This mismatch can hold up processing for months while they try to verify your identity. I'd definitely recommend calling SSA tomorrow to confirm your name change is fully processed and showing up correctly in their records. Also make sure you're checking both your return transcript AND your account transcript - sometimes updates appear in one before the other. The waiting is absolutely brutal when you're depending on that refund money for unexpected expenses. But based on what others have shared, once the name issue gets resolved, refunds typically process very quickly. Stay strong - we'll get through this mess eventually! 🤞