Document EVERYTHING. Take pics of the check, get copies of BMO's rejection docs. You might need them later when dealing with IRS

Ugh this is so frustrating! I had a similar issue with US Bank last year - they rejected my refund check even though I'd been banking with them for 5+ years. Turns out there was a tiny discrepancy between my legal name on the tax return vs what I had on file with the bank (I go by my middle name). The silver lining is that once BMO sends it back, the IRS will automatically mail you a paper check to your address on file. It's annoying to wait the extra 4-6 weeks but at least you don't have to do anything special to trigger the reissue. Just make sure your address is current with the IRS! In the meantime, you could try calling BMO one more time and ask to speak with a manager. Sometimes they can override the risk flag if you provide enough documentation. Worth a shot before you have to wait for the paper check! 🤞

Has anyone used TurboTax to report exercised put options? I'm trying to figure out where to enter the premium adjustment when reporting the stock sale.

This is really helpful information! I had no idea that the premium gets integrated into the stock sale proceeds rather than being treated separately. One follow-up question though - what happens if I exercise puts on stock that I bought at different times with different cost bases? For example, if I bought 100 shares of XYZ in January for $45/share and another 100 shares in March for $38/share, then later bought puts and exercised them against 100 shares when the stock dropped to $35. How do I determine which specific shares I'm "delivering" through the put exercise for tax purposes? Do I get to choose which lot to use (like FIFO vs LIFO), or does the IRS have specific rules about this? This could make a big difference in whether I'm reporting a gain or loss on the underlying stock transaction.

I get these letters periodically. The 1040SR is just the senior version of the regular 1040 form. If you're over 65, TurboTax automatically uses this form. What likely happened is the IRS found some minor discrepancy - maybe you forgot to report some small interest income from a bank account or something. They adjusted your tax due by $341.25, but since you were already owed a refund of that same amount, it zeroed out. They're just letting you know they made this change. The good news is you don't owe anything! Just keep the letter for your records in case you ever get audited. They want you to have documentation of all adjustments they make.

I had the EXACT same thing happen! For me, it turned out I had some dividend income that was reported to the IRS by my investment company but I forgot to include it on my return. The adjustment was basically the IRS fixing my mistake. Since the extra tax owed was less than my refund, they just subtracted it from my refund amount. Nothing to worry about - just the IRS being surprisingly efficient for once lol. Keep the letter for your records though.

Make sure your merger agreement specifically addresses how tax audit responsibilities will be handled if the IRS or state agencies come calling about pre-merger operations! We merged our LLC two years ago, and the IRS just selected our OLD company for audit for the year before the merger. Now there's a huge fight about who's responsible for handling it, providing documentation, and potentially paying any adjustments. Nobody thought to address this in the merger agreement and it's causing major drama.

This is exactly the situation I went through 18 months ago when our 3-member LLC merged with a larger entity. The undistributed profits piece was the most complex part to navigate. One thing that hasn't been mentioned yet is the importance of getting a formal valuation of your LLC before finalizing the merger terms, especially with $87K in undistributed profits. The acquiring company will likely want to see how those profits affect your capital account balance and overall contribution to the merged entity. Also, make sure you understand whether the merger will be treated as a contribution of assets under IRC Section 721 or as a sale. If structured properly as a contribution, you're right that it should be tax-free, but the devil is in the details of how the exchange is documented. For the K-1 handling, I'd recommend asking the acquiring company's accountants specifically about their process for issuing partial-year K-1s. Some firms are better at this than others, and you want to make sure they have experience with mid-year mergers to avoid delays in getting your tax documents. The undistributed profits will definitely transfer as part of your capital account, but make sure the merger agreement specifies exactly how they'll be valued and allocated in the new entity structure.

11 One thing nobody's mentioned - make sure to save all your relocation expense receipts for both internships! While they're not typically deductible federally anymore, some states still allow deductions for temporary work assignments. Also, if your employers provided any relocation assistance, that might be taxable too depending on how it was structured.

20 I'm also doing internships this summer but was told I should submit a new W-4 to adjust my withholding since the default withholding assumes year-round employment. Has anyone done this? Is it worth the hassle?