This appears to be a CP2000 Proposed Adjustment Notice or similar correspondence. These notices typically involve a discrepancy between income reported on your return versus information the IRS received from third parties. The processing timeframe after acceptance varies based on current IRS backlog status and submission method. Electronic submission via the IRS portal generally results in faster processing (6-12 weeks) compared to mail submission (12-16 weeks).

I went through this exact process about 18 months ago with a CP2000 notice. Here's what I learned: definitely use the upload option through the IRS website - it's much faster than mail. I submitted mine electronically and got my adjusted refund in about 7 weeks. Make sure to take screenshots of your submission confirmation and save any reference numbers they give you. Also, set up online account access at irs.gov if you haven't already so you can monitor your account transcript for updates. The transcript will show processing codes that indicate where your case stands in the system. One tip: if you're uploading, make sure your signature is clear and the document quality is good - poor scans can cause delays.

Mite help to understand WHY basis matters for inherited IRAs. Traditional IRA contributions r usually tax-deductible (pre-tax $$$), so distributions r fully taxable. But if the original owner ever made NON-deductible contributions (after-tax $$$), those amounts shouldnt be taxed again when distributed. The non-deductible portion = "basis". When u inherit, u inherit their basis proportionally. So if 10% of their IRA was basis, 10% of each distribution u take is tax-free.

This is such a helpful thread! I'm dealing with a similar situation with my grandmother's IRA that I inherited last month. Reading through everyone's explanations finally made the "basis" concept click for me. One thing I learned from my tax preparer that might help others: even if you can't find complete documentation about nondeductible contributions, the IRA custodian (like Fidelity, Vanguard, etc.) sometimes has better records than you'd expect. When I called Schwab about my grandmother's account, they were able to pull up contribution records going back 15 years showing which deposits were marked as nondeductible. They couldn't go back to the very beginning of her account from the 1980s, but they had enough info to establish that she'd been making regular nondeductible contributions since 2009 when her income got too high for deductible contributions. This saved me from having to assume everything was taxable. Worth making that call to the custodian before you give up on finding basis information!

Just wanted to add something important that might affect your decision between superseded vs amended - if you're doing the backdoor Roth conversion, you'll need to report both the recharacterization AND the conversion on your return using Forms 8606 and possibly 1099-R reporting. A superseded return might be cleaner here because you can report everything as one cohesive filing rather than having the original return show incorrect Roth contributions and then an amendment trying to explain the backdoor process. The IRS matching systems sometimes flag discrepancies between what custodians report (via 1099-R forms) and what's on your return, so having everything properly aligned from the start could save you from getting automated notices later. Also, since you mentioned you already got your refund - if the backdoor Roth process changes your tax liability, you might owe additional taxes or be entitled to a larger refund. With a superseded return, this gets calculated fresh. With an amended return, you're working off the original calculation which can sometimes make the forms more complicated to fill out correctly. Whatever route you choose, make sure your tax pro has experience with backdoor Roth reporting - it's one of those areas where small mistakes can create big headaches with the IRS later!

Just went through this exact situation a few months ago! One thing that really helped me decide was understanding that if you've already received your refund and are still before the filing deadline, you CAN file a superseded return, but you'll need to include payment for any refund amount that needs to be returned based on your corrected calculations. In my case, the backdoor Roth conversion actually increased my tax liability slightly (due to some Traditional IRA balances I had forgotten about triggering the pro-rata rule), so I had to send in additional payment with my superseded return. My tax preparer said this is pretty common and the IRS handles it routinely. The key advantage I found with the superseded approach was exactly what Carmen mentioned - cleaner reporting of the recharacterization and conversion transactions. When everything is reported correctly from the start, there's less chance of getting those automated CP2000 notices later when the IRS computers try to match up your 1099-R forms from your IRA custodian. One tip: make sure to keep detailed records of all the dates when your recharacterization and conversion transactions actually settled. The IRS wants to see that everything happened in the correct order and timeframe, especially if you're doing this process after initially filing your return.

Has anyone noticed that the IRS Free Fillable Forms are missing some forms and worksheets? That might be why your refund calculated differently. I had the same thing happen with education credits - the free fillable forms didn't have all the worksheets that TurboTax walked me through.

This is a really common situation, and you're right to be concerned about filing twice! The IRS systems will definitely catch duplicate returns and it can create unnecessary delays and complications. Since you've already submitted your first return, your best bet is to file an amended return (Form 1040-X) rather than submitting a completely new return. The amended return is specifically designed for situations like yours where you need to correct errors or add missing information. Before you do anything though, I'd strongly recommend figuring out exactly WHY there's such a big difference between the two calculations. Was it missing deductions, different filing status, forgotten tax credits, or something else? Understanding this will help you complete the amended return correctly and avoid similar issues in the future. The good news is that filing an amended return is straightforward - you just need to explain what changed and provide the correct information. It takes longer to process (usually 16+ weeks), but it's the proper way to handle this situation without creating red flags on your account.

This thread has been incredibly helpful! I'm also considering switching from sole prop to QJV with my spouse. One question I haven't seen addressed - if we make the switch to QJV, do we need to get a new EIN or can we keep using the existing one from the sole proprietorship? Also, how does this affect any business licenses or permits we currently have under the sole prop structure? I'm worried about having to re-apply for everything or notify various agencies about the change.

This has been such an informative discussion! I'm a tax preparer and wanted to add a few practical tips for anyone making the QJV switch. First, timing-wise, if you're switching mid-year, pick a clear date (like the first of a month) and document it well. This makes the math much cleaner when you're splitting income and expenses between your individual Schedule Cs. Second, regarding the employee children - this is actually one of the nice benefits of a QJV. Both parents can claim the wages paid to your sons as business deductions on their respective Schedule Cs, and the kids still get all the same employment protections and benefits they had before. One thing to watch out for: make sure you're both genuinely involved in business decisions and operations. The IRS wants to see that this isn't just a paper arrangement to split income. Keep records of meetings you have together, emails about business decisions, and document how you divide responsibilities. Also, don't forget that both spouses will now need to make quarterly estimated tax payments if you're not having enough withheld elsewhere. The self-employment tax piece that someone mentioned earlier is real - both of you will pay SE tax on your respective shares, but you'll also both be earning Social Security credits.