I used to work at a camper dealership, and we would keep records of all manufacturer incentives paid to our salespeople. Ask your husband to talk to whoever handles the payroll or accounting at his dealership. They should have a record of all spiffs and incentives paid by each manufacturer throughout the year, even if those payments didn't come directly through the dealership. We did this specifically to help our sales staff at tax time, since manufacturer incentives can be a recordkeeping nightmare!

I'm dealing with a similar situation right now! My brother sells motorcycles and gets these manufacturer bonuses that are really inconsistent with how they're reported. Some come on his W-2, others on separate 1099s, and some seem to fall through the cracks entirely. One thing that helped us was creating a simple spreadsheet throughout the year tracking every incentive he receives - date, manufacturer, amount, and type (cash, gift card, etc.). Even if you start this now for next year, it'll save you so much stress. For your current situation, I'd definitely recommend the advice others gave about checking with the dealership's accounting department first. If that doesn't work, you might want to estimate and report the income rather than risk filing without it. The IRS is generally more understanding if you make a good faith effort to report income, even if the amount is slightly off, versus not reporting it at all and having them catch it later through 1099 matching.

Has anyone else noticed that TurboTax doesn't handle the supplemental information on 1099-Bs very well? I have RSUs where the 1099-B has this cryptic note about "Ordinary income of $X already included in Box 1 of Form W-2" but TurboTax doesn't seem to recognize that when I import.

I just went through this exact situation last month and wanted to share what I learned. The key thing that saved me was creating a spreadsheet to track everything separately before entering it into TurboTax. For RSUs, I listed each vesting event with the vesting date, number of shares, FMV on vesting date, and which shares were sold immediately vs. kept. The shares sold for tax withholding usually have minimal gain/loss since they're sold right at vesting. For ESPP, I tracked the offering period start date, purchase date, purchase price, and sale date for each transaction. This helped me determine qualifying vs. non-qualifying dispositions. One gotcha I discovered: if you have multiple RSU vest dates throughout the year and then sell shares later, your broker might use FIFO (first in, first out) to determine which specific shares you sold. This can affect your cost basis calculation. Also, double-check that your W-2 Box 1 includes all your RSU income. Mine was about $8K higher than my base salary due to the vested RSUs. Once I confirmed that, I knew I needed to adjust the cost basis on my 1099-B to avoid double taxation. The whole process took me about 3 hours to sort out, but it was worth it to make sure I got it right!

This is incredibly encouraging news! I've been working in estate administration for about 5 years now, and the processing delays have been one of the most stressful aspects of the job. Having to constantly explain to grieving families why they can't access or distribute assets for 2+ years has been heartbreaking. The 18-month processing times you're seeing align with what we've experienced recently as well. We had two 706 returns come back within 15 and 17 months respectively, which was shocking after years of much longer waits. It's such a relief to be able to give clients more realistic expectations again. I'm particularly interested in your mention of the 706-NA processing in 11 months - that's remarkable! Non-resident estate returns used to be even slower than domestic ones in my experience. One thing I've been wondering about is whether this improvement extends to more complex estates with business valuations or significant charitable deductions. Have you seen faster processing across all types of estates, or mainly the more straightforward ones? I have a complex estate with a family business interest that we filed 8 months ago, and I'm cautiously hopeful it might move faster than the 30+ months we used to expect for these cases.

This is fantastic news to hear! As someone who recently started handling estate administration, the improved processing times give me so much more confidence in setting realistic expectations with clients. I've been using a combination of the tools mentioned here - both taxr.ai for ensuring complete submissions and Claimyr when I absolutely need to reach the IRS directly. The taxr.ai system has been invaluable for catching potential issues before filing, and I actually used Claimyr last month to get clarification on a complex valuation question that could have delayed processing for months. What really strikes me about this thread is how much the client experience has improved. Being able to tell families that their 706 will likely be processed in 14-20 months instead of 30+ months makes such a difference during an already difficult time. The beneficiary communication features in these newer tools have also been game-changers for managing expectations and reducing those anxious phone calls we all know too well. I'm cautiously optimistic that these improvements represent a real systemic change at the IRS rather than just a temporary backlog clearance. The combination of better IRS processing and these new professional tools is making estate administration much more manageable for both practitioners and families.

I'm dealing with a very similar situation with my online electronics resale business! What really helped me was creating a simple spreadsheet to track my inventory purchases by month, then using the weighted average method that others mentioned. Here's what I did: I calculated the total cost of all inventory purchased during the year, divided by the total number of items purchased, which gave me an average cost per item. Then I multiplied that average by the number of items I actually sold. It's not perfect, but it's a reasonable and defensible method that the IRS accepts. The key is being consistent and documenting your methodology clearly. I kept notes explaining exactly how I calculated everything in case I ever get audited. One tip: if you have receipts in Korean, consider using Google Translate's camera feature to get rough translations of the key information like dates and amounts. It's not perfect but it helped me organize my records better for this year. Good luck with your vintage clothing business! The first year is always the hardest for getting organized.

This is such a common problem for small business owners! I went through the exact same thing with my handmade soap business in my first year. One thing that really helped me was setting up a simple system going forward to avoid this mess next year. I started photographing each batch of inventory I purchase with a simple note card showing the date and total cost, then I track sales by taking photos when I package items to ship. It's not perfect tracking, but it gives me enough data to use methods like FIFO or weighted average cost. For your current situation, I'd definitely go with the FIFO or weighted average approaches that others mentioned rather than not claiming COGS at all. You're leaving money on the table by not taking that deduction, especially since you have all your purchase records. Also, consider reaching out to a local SCORE mentor or small business development center - they often have volunteers who can help you set up better systems for next year. Many of them have dealt with similar inventory tracking challenges and can give you practical advice specific to your business type. The Korean receipt issue is real! I deal with suppliers from different countries too, and Google Translate has been a lifesaver for getting the basic information I need.

I completely agree with the fax recommendation! I work in tax resolution and see this all the time - faxed documents get processed SO much faster than mailed ones right now. The IRS is still catching up on their mail backlog from the pandemic. One thing I'd add: when you fax your 1098-T, make sure the copy is crystal clear and all numbers are easily readable. The IRS automated scanning systems can reject blurry or low-quality faxes, which would delay your case. If your original 1098-T is faded or has any smudged areas, try to get a fresh copy from your school's bursar office before faxing. Also, since this is for education credits on an amended return, double-check that your 1098-T shows the correct tax year (2018) and that the amounts match what you claimed on your amended return. Any discrepancies could trigger additional correspondence and delay your $4K refund even further. The drive to your office to fax is definitely worth it compared to potentially waiting months longer for mail processing!

Great advice from everyone here! I've been dealing with IRS correspondence for years and can confirm that faxing is definitely the way to go right now. The mail processing delays are still really bad - I had a client who mailed documents in March 2022 and they weren't processed until October. One additional tip: when you fax your response, send it to the specific fax number listed on your notice, not the general IRS fax lines. Each notice type has its own processing center, and using the wrong fax number can cause delays even with electronic submission. Also, since you mentioned this is about education credits, make sure you understand exactly what the IRS is questioning. Sometimes they need more than just the 1098-T - they might want proof of enrollment, transcripts, or receipts for qualified expenses. The notice should specify exactly what they're looking for, but if you're unsure, it's worth getting clarification before you send anything. With a $4K refund on the line and a firm deadline, the extra drive to your office is a small price to pay for the peace of mind and faster processing you'll get with faxing!