FYI, I've filed the final 990-N for two small organizations and it's super easy! You just go to the IRS website, log in to the e-Postcard system, and there's literally a checkbox for "This is the final return." You check that, enter the dissolution date, and that's pretty much it. The whole process took me maybe 10 minutes.

Just want to add that you should definitely not ignore the IRS notice, even for a dissolved nonprofit. I learned this the hard way when I thought I could just let a tiny organization "fade away" without proper closure. The IRS will eventually revoke your tax-exempt status retroactively, which can create complications if anyone ever questions the organization's tax status during the years it was active. Even though your nonprofit only had minimal income, having a clean closure on record protects you from any future issues. The 990-N filing really is straightforward once you know what to do. Since you already transferred the assets to the parent organization in 2023, you have everything you need to complete the final filing. Just make sure to use 2023 as your dissolution date when you file the final return.

I've been dealing with capital loss carryovers for several years now, and I can confirm what others have said - you absolutely must use them in consecutive years. The IRS doesn't give you the option to pick and choose which years to apply the losses. In your case, since you missed claiming the $4,500 carryover on your 2023 return, you'll need to file Form 1040-X to amend that return and claim $3,000 of the loss. Then apply the remaining $1,500 on your 2024 return. One thing I learned the hard way is to always check line 16 of Schedule D from your previous year's return - that shows your capital loss carryover to the next year. I now make a note in my tax folder each year with the carryover amount so I don't forget it when preparing the following year's return. The sequential requirement exists because the IRS wants to ensure taxpayers don't strategically time their loss deductions for maximum benefit. It's frustrating when you forget, but the amended return process isn't too complicated and it's definitely worth recovering those deductions.

I've been following this thread and want to add some clarity based on my experience as a tax preparer. Everyone is correct that capital loss carryovers must be used consecutively - there's no "skipping" allowed under IRS rules. For your specific situation, Ravi, you have two options: 1. File Form 1040-X to amend your 2023 return and claim the $3,000 carryover you missed, then claim the remaining $1,500 on your 2024 return. 2. If you choose not to amend 2023, you unfortunately forfeit that $4,500 carryover entirely. You cannot apply it to 2024 or any future year. The IRS is very strict about this sequential requirement. The logic is that capital loss carryovers are meant to help taxpayers in the immediate years following large losses, not to be strategically saved for more advantageous tax years. I'd strongly recommend filing the amended return for 2023. Even if it's a bit of paperwork, you're essentially leaving $3,000+ in tax savings on the table otherwise. The statute of limitations for amendments is three years from the original filing date, so you should still be within the window for 2023.

Great question about multi-state sales tax for digital marketing! I've been dealing with this exact issue for my agency. One thing that really helped me was understanding that each state has different thresholds for economic nexus - it's not just about where your clients are located, but also how much revenue you generate in each state. For example, most states have either a $100,000 revenue threshold OR 200+ transactions per year. But some states like California have only the revenue threshold, while others like Texas have lower thresholds. What really surprised me was learning that some states consider "lead generation" services differently than general marketing consulting. If you're generating leads that directly result in sales for your clients, a few states treat that as a taxable service even when other marketing work isn't. Also, keep detailed records of where your clients are located versus where the actual marketing activities take place. I had a situation where a client was based in Florida but we were doing local SEO work targeting customers in Georgia - it created some complexity around which state's rules applied. The landscape changes frequently, so whatever system you use to track compliance, make sure it updates regularly. I learned that the hard way when Washington State changed their digital advertising tax rules mid-year!

This is such a timely question! I just went through this exact process when expanding my digital marketing consultancy to multiple states. One resource that was incredibly helpful was the Sales Tax Institute's state-by-state comparison tool - it's updated quarterly and specifically covers professional services exemptions. A few key things I learned that might help: 1. **Service vs. Product distinction is crucial** - Pure consulting, strategy development, and campaign management are typically exempt, but the moment you deliver anything tangible (even digital downloads), you might cross into taxable territory. 2. **Watch out for "bundled services"** - Some states will tax the entire package if you bundle exempt services with taxable products, rather than allowing you to separate them. 3. **Economic nexus thresholds vary more than you'd think** - While many states use the $100K/200 transaction rule, states like Alabama have a $250K threshold, and some have additional complexity around how they count digital services. 4. **Registration timing matters** - Don't wait until you cross thresholds to start planning. Some states require registration within 30 days of crossing nexus, and the penalties for late registration can be steep. I'd definitely recommend getting a consultation with a multi-state tax specialist before you scale too much further. The upfront cost is way less than dealing with compliance issues later! Feel free to reach out if you want to compare notes on specific states.

I've been lurking on this thread as I'm in a remarkably similar situation - my mother passed away 7 months ago and I'm dealing with both her revocable trust (about $820k) and estate assets (around $180k). Reading through everyone's experiences has been incredibly enlightening. What really stands out to me from this discussion is how the Section 645 election seems to offer benefits beyond just simplified filing. The fiscal year flexibility that @Sean Matthews mentioned could be huge for us since we're looking at selling some appreciated stock positions, and the distribution timing optimization that @Connor Murphy described aligns perfectly with our beneficiary situation. One thing I'm curious about that hasn't been addressed - does anyone know how the election affects the stepped-up basis treatment for trust assets? I know estate assets get the stepped-up basis, but I want to make sure making the election doesn't somehow compromise that benefit for the assets that were already in the trust. @Rami Samuels, given all the insights shared here, have you made a decision on whether to proceed with the election? The complexity of everyone's situations really drives home how individual these decisions are, but it sounds like in cases with substantial assets like ours, the benefits often outweigh the costs. Thanks to everyone who's shared their experiences - this has been more helpful than hours of trying to decipher IRS publications!

I'm in almost the exact same situation as you - my dad passed away 6 months ago and I'm executor of his estate plus trustee of his revocable trust. After reading through all the great advice here, I wanted to share what I learned from meeting with an estate tax CPA last week. The key insight for me was understanding that with your asset levels ($975k total), you're likely generating enough income from investments to push into higher tax brackets if filing separately. The Section 645 election can help smooth out the income distribution and potentially keep you in lower brackets longer. Also, something that might be specific to your situation - if that vacation property generates any rental income, the election makes tracking and reporting much cleaner. Without it, you'd need to allocate the rental income, expenses, and depreciation between two different tax returns, which gets complicated fast. One practical tip: before deciding, ask your attorney if they can provide a rough calculation of the tax difference between filing separately vs. the combined election. Most experienced estate attorneys can do a back-of-envelope estimate that might help justify the $1,800 fee. In my case, the projected savings over the election period was around $3,200, making the attorney fee a no-brainer. Have you gotten any guidance on the deadline for making the election? That was the piece that almost caught me - apparently you have to make it by the due date of the estate's first income tax return, including extensions.

Has anyone tried just putting in random numbers for the TIN? I heard some creators do that just to get past the verification screen and then fix it later when they actually receive payments. Seems like it might be easier than all these complicated solutions.

I went through this exact same situation with my younger sister last year when she hit 10K on her art TikTok. The TIN requirement definitely caught us off guard too! We ended up going with the custodial account route that Lara mentioned, and it worked perfectly. We set it up through our local credit union - they were really helpful and familiar with this type of setup for young creators. The whole process took about 2 weeks from start to finish. The key benefit for us was that it kept my sister's earnings separate from my parents' income for tax purposes, which was important since she was making decent money from her art tutorials. We got an EIN for the custodial account, submitted that to TikTok, and she was approved within a few days. One tip - make sure to keep really good records of all expenses related to creating content (art supplies, phone upgrades, lighting equipment, etc.) because those can be deducted against the income. Our accountant said this is especially important when you're earning enough to owe taxes. The custodial account also made it easier when she turned 18 last month - we just transferred everything over to her regular checking account without any complicated tax implications.