This whole thread has been incredibly educational! I work as a tax preparer and see this exact confusion every single year with Fidelity forms. You're absolutely right that "FIDELITY INVESTMENTS" is the correct payer name to use. What I always tell my clients is that these large financial institutions often have multiple subsidiary names for different divisions, but they report to the IRS under their main corporate entity. The "Institutional Operations Co." designation is just Fidelity's internal organizational structure - it's not what matters for tax reporting purposes. The EIN is indeed the critical matching element. I've seen clients stress over whether to include periods, commas, or specific formatting in company names, but I've never had a return rejected or delayed due to minor payer name variations as long as the EIN and dollar amounts are correct. For anyone else dealing with similar situations with other brokerages - Vanguard, Schwab, etc. - the same principle applies. Use the main company name that most people would recognize, and make sure that EIN is entered perfectly. The tax software dropdown menus are your friend here since they're designed to match IRS expectations.

As someone who just went through this exact same situation last week, I can confirm that using "FIDELITY INVESTMENTS" is absolutely the right approach! I had the same confusing form with the "Institutional Operations Co." designation and spent way too much time overthinking it. What really helped me was calling FreeTaxUSA's support line directly. They confirmed that their dropdown menu uses "Fidelity Investments" specifically because that's how Fidelity reports to the IRS. The support rep also mentioned that their software is updated annually to match the most current IRS payer databases. I filed my return using "FIDELITY INVESTMENTS" and got my refund deposited exactly when they estimated - no delays or issues whatsoever. The EIN matched perfectly and that's really all the IRS cares about for their automated matching system. For anyone still worried about this, I'd definitely recommend using the dropdown option in your tax software if it's available. These companies spend a lot of resources making sure their payer databases are accurate because return rejections cost them support time and customer satisfaction. Hope this helps put some minds at ease! This thread has been so helpful for understanding how the IRS matching process actually works behind the scenes.

This has been such a helpful discussion! I'm dealing with a similar situation where a religious organization in my area owns multiple properties that appear to be operating as standard rental units, and I wasn't sure how to approach it without seeming confrontational. The step-by-step approach outlined here is perfect - starting with public records requests to see the actual exemption documentation, then following up appropriately based on what's found. I particularly appreciate the point about framing inquiries as seeking information rather than making accusations. One thing I'm wondering about: if a church does turn out to be improperly claiming exemptions, what typically happens with back taxes? Do they just start paying going forward, or are they required to pay retroactively for the years they should have been paying? I imagine this could add up to quite a significant amount depending on how long the improper exemption has been in place. Also, for anyone who's been through this process, how long does a typical assessment review take once the county starts investigating? I want to set appropriate expectations for how long this might take to resolve.

This thread has been incredibly informative! I'm dealing with a similar situation in my area where a church from another state owns several residential properties that are clearly being used as regular rentals, not for any religious purpose. What really helped me understand the issue was learning about the distinction between ownership and use for tax exemption purposes. Just because a religious organization owns property doesn't automatically make it tax-exempt - the property has to actually be used for religious, educational, or charitable purposes. The systematic approach outlined here is perfect: start with public records requests to get the exemption documentation, then follow up with diplomatic inquiries based on what you find. I submitted my records request last week and should hear back soon. It's much better to have the actual paperwork in hand before making any inquiries. One thing I discovered in researching my state's laws is that many jurisdictions have annual deadlines for churches to file updated exemption applications if their property use changes. Missing these deadlines can result in automatic loss of exemption status, which might explain some of these situations. It could be administrative oversight rather than intentional abuse. Thanks to everyone who shared their experiences and practical advice - it's made what seemed like an intimidating process much more manageable!

I think most people misunderstand REPS. The key issue is "material participation" in rental activities. Being a realtor counts for the 750 hours but NOT for material participation in your rentals. The exception is if you make a grouping election as others mentioned. Your CPA should know this but many don't understand real estate tax rules well. Just FYI - I got audited on this exact issue in 2023. The IRS was looking specifically at REPS claims. Make sure you have a detailed time log showing hours for EACH activity. After-the-fact estimates won't cut it in an audit.

Based on my experience dealing with REPS qualifications, your tax preparer may be being overly conservative. As a full-time realtor, you likely already meet the first two REPS requirements (750+ hours and 50%+ of working time in real estate). The critical piece is making the grouping election to treat all your rental activities as one activity. This election is made by attaching a statement to your tax return - there's no specific IRS form for it. The statement should clearly indicate you're electing to group all rental real estate activities under IRC Section 469(c)(7)(A). With this election, you can combine your time spent on the 3 self-managed properties with time spent overseeing the other 15 properties (reviewing reports, making decisions, communicating with property managers, etc.) to meet the material participation test. I'd recommend getting a second opinion from a CPA who specializes in real estate taxation. Many general tax preparers aren't familiar with the nuances of REPS, especially the grouping election strategy. The potential tax savings make it worth exploring further. Also, start keeping detailed time logs NOW for 2025 - document every hour spent on rental activities, no matter how small. This contemporaneous documentation is crucial if you're ever audited.

I'm dealing with a similar situation with my grandmother's trust audit, and I found that getting documentation from the original attorney who drafted the trust was incredibly helpful. The attorney was able to provide a letter explaining the specific provisions that made it qualify as a grantor trust under IRC 671-679. If the original attorney isn't available, consider having another estate attorney review the trust document. They can provide a written opinion on whether it properly qualifies as a grantor trust during the audit period. This kind of professional documentation carries a lot of weight with IRS agents and can prevent you from having to argue the technical details yourself. Also, don't forget that you have the right to request a different agent if the current one seems unfamiliar with grantor trust rules. Sometimes a fresh perspective from another agent who specializes in trust matters can resolve the issue quickly.

You're absolutely right to be concerned about this EIN request during the audit. I went through something very similar with my late husband's trust audit two years ago, and the key is understanding the timing distinction. For the 2022 tax year when your mother-in-law was alive, if the trust properly qualified as a grantor trust, it should have been using her SSN - not an EIN. The IRS agent may be confused about the requirements or applying current post-death rules to the historical audit period. I'd recommend preparing a clear timeline showing: (1) During 2022, mother-in-law was alive and the trust was a grantor trust using her SSN, (2) After her death, the trust status changed and may now require an EIN going forward. These are two separate tax periods with different requirements. Consider requesting to speak with the agent's supervisor if they continue to insist on an EIN for the 2022 audit period. In my experience, supervisors tend to be more familiar with the nuanced grantor trust regulations. Also, document everything in writing - send a follow-up email after any phone conversations summarizing what was discussed and your position. The most important thing is not to let them pressure you into getting an EIN just to move the audit along if it wasn't required for that tax year. That could create unnecessary complications for future filings.

I made the switch from an expensive CPA to H&R Block last year for my small consulting business and it was definitely worth it. My old accountant was charging me $800+ for what felt like 20 minutes of work since I had everything organized in QuickBooks. The key is finding the right location and preparer. I called three different H&R Block offices and asked specifically about their small business experience before booking. The one I ended up using had a senior tax professional who'd been doing small business returns for over a decade. Total cost was $320 for my Schedule C return vs the $800+ I was paying before. She caught a few deductions my previous accountant had missed (like some home office expenses) and explained everything clearly. The audit protection gave me peace of mind too. My advice: call ahead, ask for their most experienced small business preparer, and bring your QuickBooks P&L and expense reports printed and organized. If your business is straightforward, you'll likely save a ton of money without sacrificing quality.

I switched from a $750-per-return CPA to H&R Block two years ago for my small marketing business and honestly wish I'd done it sooner. My situation sounds similar to yours - I keep everything meticulously organized in QuickBooks, so I was basically paying premium prices for data entry. The H&R Block preparer I work with now is fantastic. She's been doing small business returns for 15+ years and actually found some deductions my expensive CPA had been missing (like software subscriptions and professional development courses). Cost dropped to about $285 for my Schedule C return. One thing I learned: don't just walk into any H&R Block. I called around and specifically asked which locations had the most experienced small business preparers. Made appointments at two different offices to interview them first. The difference in knowledge was night and day. Since you're already organized with QuickBooks, you're in a great position to make this work. The key is finding the right preparer who understands small business deductions and isn't afraid to be appropriately aggressive (within legal limits, of course). Your current accountant charging $600 per form sounds absolutely ridiculous for a small operation.