I'm so sorry for your loss, Yara. Dealing with tax complexities while grieving is incredibly challenging, and I can understand how overwhelming this situation must feel. The advice you've received here is absolutely correct - you must use the stepped-up basis (fair market value on the date of death) rather than your husband's original purchase price. This is required under IRC Section 1014 for all inherited assets, even though it means a smaller loss deduction in your case. As someone new to this community, I'm impressed by the comprehensive guidance everyone has provided. A few key takeaways for your immediate next steps: **Contact your brokerage right away** - Ensure they've properly coded these as inherited assets. If your 1099-B shows the original cost basis instead of the stepped-up basis, request a corrected form before filing. **Document everything thoroughly** - Get official date-of-death valuations from both your brokerage and verify against the fund companies' websites. Keep all records of the inheritance, original statements, and sale transactions. **Consider professional help** - Given the conflicting advice you mentioned and the complexity of inherited assets, a consultation with a tax professional who specializes in estate matters could provide valuable peace of mind, especially for this first year. Remember that even with the stepped-up basis, your capital losses can still offset other gains and provide up to $3,000 in annual deductions against ordinary income, with any unused losses carrying forward indefinitely. You're handling this exactly right by seeking clarity before filing. That proactive approach will help ensure everything is done correctly during an already difficult time.

I'm so sorry for your loss, Yara. Having to navigate complex tax rules while dealing with grief is incredibly difficult, and I can only imagine how stressful this must be on top of everything else you're going through. The advice everyone has provided here is absolutely spot-on - you must use the stepped-up basis, which is the fair market value of the mutual funds on your husband's date of death. This is mandated by Section 1014 of the Internal Revenue Code and applies to all inherited assets, regardless of what the original purchase price was. I know it feels unfair that you can't use the higher amount he actually paid, but the law is very clear on this point. From my own experience dealing with inherited investments, here are the most important steps to take right now: **Get your brokerage records corrected immediately** - If they issued a 1099-B showing your husband's original cost basis instead of the stepped-up basis, you'll need a corrected form before filing. Most brokerages have specific procedures for inherited assets once you provide the death certificate. **Secure multiple sources for date-of-death valuations** - Get the official values from your brokerage, but also check the mutual fund companies' websites for that specific date. Having documentation from multiple sources will strengthen your records. **Don't let the losses go to waste** - Even though the loss amount is smaller than you hoped, you can still use it to offset other capital gains and deduct up to $3,000 against ordinary income this year, with any remaining losses carrying forward indefinitely to future tax years. You're being smart by getting this sorted out before filing. That proactive approach will help ensure everything is handled correctly and give you confidence moving forward. Hang in there - the first year dealing with inherited assets is definitely the hardest from a paperwork standpoint, but you've got this.

One thing to remember about the PATH Act holds - they affect ALL returns with EITC/ACTC, even if you've been filing the same way for years without issues. The 570 code is just this year's way of marking returns subject to the hold. The first refunds for PATH Act returns won't go out until February 15th at the earliest, and many will be a few days after that. It's annoying but it's just how they try to prevent fraudulent claims.

I just wanted to thank everyone who contributed to this thread - it's been incredibly helpful! I was panicking when I saw that 570 code for the first time, but reading through all your experiences has put my mind at ease. It sounds like this is just the new normal for PATH Act filers this year. For anyone else in the same boat, here's what I learned from this discussion: the 570 code is likely just an automatic hold for EITC/ACTC returns, not a sign of problems with your return. Most people seem to see it clear around mid-February with a 571 code, followed by the actual refund date (846 code). The transcript is definitely more reliable than the Where's My Refund tool for tracking what's actually happening. I'm going to check my transcript again next week to see if there are any updates. Thanks again everyone for sharing your knowledge and experiences!

10 Does anyone know if the rules are different for minors with crypto? I'm wondering because OP is 18 now but might have been 17 when the transaction happened depending on timing.

Don't stress about this at all! You're definitely not required to file a tax return in your situation. With no income and just a tiny crypto loss, you're way below any filing thresholds. The Coinbase email is just a standard notice they have to send to everyone - it doesn't mean you personally need to do anything. Since you actually lost money (even though it was only 15 cents), there's no tax liability anyway. As a student with no income, you won't need to worry about filing taxes until you start earning above the standard deduction amount or have significant investment gains. Your $1.35 Bitcoin experiment definitely doesn't qualify! Save that email for your records if you want, but you can relax about any immediate tax obligations.

I'm going through this exact same thing right now! Filed on March 8th, got accepted the same day, but it's been showing just "Return Received" with no tax topic code for days now. I was honestly starting to panic and wondering if I messed something up on my return. This thread has been such a lifesaver - I had no idea that the absence of a tax topic was actually normal! I kept seeing people mention Tax Topic 152 in other forums and thought that was something everyone should see. The professional explanation about tax topics being situational markers rather than required progress steps makes so much sense now. I've been refreshing WMR probably way too often (guilty of checking it multiple times per day), but I'm definitely going to check my account transcript instead like everyone's recommending. Thank you for posting this question - it's exactly what I needed to see to stop worrying about my refund!

I'm dealing with this exact same situation! Filed on March 10th and got accepted immediately, but WMR has just been showing "Return Received" with no tax topic code. I was getting really worried that something was wrong with my return, especially after seeing so many posts about Tax Topic 152. This thread has been incredibly reassuring - it's amazing how many of us are going through the same thing! The tax preparer's explanation about tax topics being situational markers rather than universal progress indicators really helped me understand what's happening. I've been guilty of checking WMR way too often (like every few hours), but now I realize I should focus on my account transcript instead. It's such a relief to know that no tax topic actually means my return is likely processing normally rather than being stuck or flagged. Thank you to everyone who shared their experiences - this community support is exactly what I needed to stop stressing about my refund!

I actually work at a tax preparation firm and deal with backup withholding issues regularly. One thing I'd add that hasn't been mentioned is that you should also check if you received any CP2025 or CP2025A notices in the mail - these are the specific IRS notices that confirm backup withholding has been removed from your account. If you did receive one of these notices but misplaced it, you can request a duplicate by calling the IRS and asking for a "copy of backup withholding removal notice CP2025." This is often easier than requesting other types of documentation since it's a standardized form. Also, regarding the timeline - the IRS typically takes 4-6 weeks after you've satisfied all filing requirements to process the backup withholding removal. However, I've seen cases where it takes longer if there were multiple years of non-compliance or if there are other unresolved issues on your account. One pro tip: when you do get the removal documentation, I recommend sending it to clients via certified mail or email with read receipt. Some clients are slow to update their payroll systems, and having proof of delivery helps if you need to follow up. The 24% withholding really adds up, so it's worth being proactive about getting this resolved quickly!

I'm going through almost the exact same thing right now! Filed my late returns about 6 months ago and paid everything off, but I'm still getting 24% withheld from some clients while others aren't withholding anything. It's so confusing and frustrating. Reading through all these responses has been incredibly helpful - I had no idea about the CP2025 notice or that I needed to specifically request documentation from the IRS. I just assumed it would be automatic once I was compliant. The fact that some clients might not have even received the original backup withholding notice explains why the withholding is so inconsistent across my client base. I'm definitely going to try calling and asking specifically for the "backup withholding department" and requesting a Statement of Account or CP2025 copy. If that doesn't work, the Taxpayer Assistance Center option sounds promising since I've had zero luck getting through on the phone so far. Has anyone had success with getting clients to stop withholding temporarily while waiting for the official IRS documentation? Or do they pretty much have to keep withholding until they get the official removal notice? I have a big project payment coming up next week and losing 24% of it would really hurt right now.