Looking at your transcript, that 971 code from 12/11/2024 is likely related to your amended return processing. Since you filed the amendment in July and it shows as processed in August (based on those codes), this new 971 could be the IRS issuing a final notice about your refund adjustment. The fact that they told you it was "released" is promising - usually when they say that, the money follows within 2-3 weeks. Keep checking WMR and your bank account. The 971 isn't necessarily a delay, just documentation that they're sending you something in the mail explaining the final numbers.

Code 971 with a December date after they told you the refund was released is actually a good sign! This usually means they're sending you a notice explaining the final refund amount or confirming the release. Since your amended return shows as processed back in August (those 767, 768, 806 codes), this 971 is likely just the final paperwork catching up. I'd expect to see your refund hit your account within the next 1-3 weeks based on that phone call. Keep checking WMR daily and watch your mail for that notice - it should explain everything!

8 Has anyone used the IRS's "Where's My Refund" tool with large donation deductions? I'm wondering if returns with big charitable contributions take longer to process or if they get refunds at the normal speed.

15 I work as a tax preparer and see large charitable deductions regularly. A few additional points that might help: The IRS has specific thresholds that can trigger computer screening - donations over certain percentages of AGI are more likely to get a second look, but this doesn't mean you'll definitely be audited. Having complete documentation is your best protection. One thing I always tell clients: make sure you're not exceeding the annual deduction limits. For 2023, cash donations to public charities are generally limited to 60% of your AGI, though there were temporary 100% limits during COVID that have since expired. Any excess can be carried forward for up to 5 years. Also, if any of your donations were appreciated property (stocks, real estate, etc.), there are additional documentation requirements and different percentage limits (usually 30% of AGI for appreciated capital gain property). Keep digital copies of everything and store them in multiple places. In an audit, missing documentation is often more problematic than the size of the deduction itself.

Has anyone noticed if this change to Schedule K-1 codes also affects how you report this info on your personal 1040? I'm worried that if I'm creating a Statement A for my S-corp K-1, I might also need to change how I report this on my individual return.

This is exactly the kind of confusion I was dealing with a few months ago! The transition from separate Box 17 codes to the Statement A approach definitely caught a lot of S-corp owners off guard. Just to add some clarity for anyone still struggling with this - the key thing to remember is that the underlying Section 199A information requirements haven't changed, just how they're presented on the K-1. You still need to track the same components (qualified business income, W-2 wages, UBIA of qualified property, etc.), but now they all go on an attached statement rather than being split across different box codes. One tip that helped me: if you're preparing your own K-1, make sure your Statement A is clearly labeled and includes all the required elements. The IRS hasn't published an official form for Statement A, so there's some flexibility in format, but consistency and clarity are key. Each component should be clearly identified and the amounts should tie back to your business records. Also worth noting - this change actually makes multi-shareholder S-corps easier to handle since you can provide detailed breakdowns for each shareholder's allocation without cramming everything into limited box space.

Great question! I went through this exact situation last year and learned the hard way that the withholding is just a prepayment, not the final amount you'll owe. Here's what happened to me: I withdrew $15,000 from my Traditional IRA and had 20% withheld ($3,000). When I filed my taxes, I ended up owing an additional $2,200 because: - The withdrawal pushed me into a higher tax bracket, so my actual tax rate on that income was 24% instead of the 20% I had withheld - I owed the full 10% early withdrawal penalty ($1,500) since I didn't qualify for any exceptions - Total taxes owed: $5,100, but I'd only prepaid $3,000 My advice: Calculate your estimated tax bracket for the year INCLUDING the IRA withdrawal, then have at least that percentage withheld for income taxes. Remember the 10% penalty is completely separate and won't be covered by withholding, so set aside that money too. It's better to overwithhold and get a refund than to owe a big chunk at tax time!

Something to also keep in mind is the timing of your withdrawal and how it affects quarterly estimated tax payments. If you're taking a large early distribution and you're self-employed or have other income that isn't subject to withholding, you might need to make estimated quarterly payments to avoid underpayment penalties. I learned this the hard way when I took an early distribution in Q3 last year. Even though I had taxes withheld from the IRA distribution, the IRS expects you to pay taxes evenly throughout the year. Since my withdrawal was large enough to significantly increase my tax liability for the year, I should have made an estimated payment for Q4 to cover the difference. The safe harbor rule mentioned earlier saved me from penalties, but it's something to consider if your withdrawal is substantial relative to your annual income. You might want to calculate whether you need to make an estimated payment for the current quarter to stay on the safe side. The IRS Form 1040ES has worksheets that can help you figure this out.

Just wanted to add that if you're worried about your bank asking questions, you can proactively contact them before making the deposit. I sold my boat last year for $32k and got a cashier's check. Called my bank beforehand, explained the situation, and they noted my account. Made the deposit super smooth and they even waived the normal hold period since I gave them a heads up.

One thing I haven't seen mentioned yet is keeping records of the equipment's depreciated value from your company's books if possible. When businesses sell off old equipment, they often have it listed at a depreciated book value that's much lower than what you might actually sell it for. If your company can provide documentation showing the equipment's book value when you purchased it, that helps establish a clear paper trail for the transaction. Also, since you mentioned the buyer is a local computer refurb company, they'll likely have their own documentation requirements for purchasing inventory. Make sure you get a proper invoice or purchase agreement from them that clearly states what equipment is being sold. This creates a clean business-to-business transaction record that banks and the IRS can easily understand if questions ever come up. The certified check approach is definitely the way to go - it's much cleaner than splitting payments, which could actually create more paperwork and potential confusion rather than less.