I think there's a fundamental misunderstanding in the original post. An inherited IRA and a partnership interest (which generates a K-1) are completely different things. 1. Inherited IRA: You receive distributions reported on a 1099-R form 2. Partnership interest: You receive a Schedule K-1 (Form 1065) The "at risk" rules only apply to the partnership interest, not the IRA. Is it possible you're involved in a partnership that owns an IRA as one of its assets? That would be unusual, but might explain the confusion.

Great to see this got sorted out! Just wanted to add one important point for anyone else dealing with inherited partnership interests: make sure you get a stepped-up basis for tax purposes. When you inherit a partnership interest, your basis is typically "stepped up" to the fair market value at the date of death (that $15,000 you mentioned). This is different from your "at risk" amount, but it's crucial for calculating gains/losses if you ever sell the partnership interest. Also, since you inherited both an IRA and partnership interest, you might want to consult a tax professional to make sure you're handling the required minimum distributions from the inherited IRA correctly - those have their own complex rules and deadlines that are completely separate from your partnership tax reporting. Glad the community could help untangle this confusion!

Has anyone used TurboTax to handle something like this? I've been using it for years for my contractor income and wondering if the audit defense feature they offer would help in this situation.

I understand how stressful this must be! I went through something similar about 6 months ago. The key thing to remember is that letters from the Whistleblower Office don't always mean someone specifically reported you - they handle various types of compliance reviews and data-matching programs too. Here's what I'd recommend based on my experience: 1. First, verify it's legitimate by calling the main IRS number (800-829-1040) with the notice in hand. Don't use any phone numbers from the letter until you've confirmed it's real. 2. Gather all your documentation for 2021-2023: 1099s, business expense receipts, home office measurements/photos, and anything related to your computer equipment and software deductions. 3. The simplified home office deduction you mentioned is actually pretty straightforward to document, so that shouldn't be a major concern. 4. Consider getting professional help. An Enrolled Agent or CPA experienced with contractor audits can be invaluable, especially since this involves the Whistleblower Office which can be more complex than regular correspondence exams. Don't panic - many of these inquiries resolve quickly once you provide the requested documentation. The vague language is unfortunately typical for initial IRS correspondence. Stay organized, respond promptly, and you'll likely find it's much less scary than it initially appears.

I'm in the exact same situation! Filed on February 8th and my cycle code passed on March 15th - it's been almost a month with absolutely no movement. I've been checking my transcript daily and it still just shows the same processing date. What's really frustrating is that my neighbor filed after me and already got her refund two weeks ago! I tried calling the IRS hotline three times this week but keep getting that automated message about high call volumes before it hangs up. The "Where's My Refund" tool is useless too - just keeps saying "still processing" with no estimated timeframe. @Natasha Volkova thanks for that detailed breakdown! I'm going to check my transcript again for those specific codes you mentioned. And @Connor O'Neill that ClaimYr service is looking more and more tempting - $20 seems worth it to actually talk to a human being at this point. Has anyone noticed if there's a pattern to which returns are getting delayed? Like certain forms or deductions that might be causing hold-ups? Just trying to figure out if there's something specific about my return that's causing the delay.

I'm going through the exact same nightmare! Filed on February 20th and my cycle code date passed over 3 weeks ago with zero movement. What's really getting to me is that I can see on my transcript that they received and accepted my return, but then... nothing. Just radio silence. I've been reading through all the advice here and I think I'm going to try a combination approach: call early morning like @Zainab Ismail suggested, and if that doesn't work, I might bite the bullet and try that ClaimYr service @Connor O'Neill mentioned. At this point, $20 seems like a small price to pay for my sanity! @Natasha Volkova thank you so much for that comprehensive breakdown - I had no idea about those specific codes to look for. I'm going to check my transcript tonight for 570 or 971 codes. Has anyone else noticed if there are certain days of the week when transcripts are more likely to update? I feel like I'm becoming obsessed with checking multiple times a day and it's driving me crazy! 😵‍💫 The worst part is not knowing if this is normal processing time or if there's actually an issue that needs to be resolved. The uncertainty is killing me!

Just want to point out that Webull actually has a support line dedicated to tax document questions: 1-888-828-0618. I had similar issues and they were able to look up the acquisition dates of my promotional stocks even after I closed my account. Took about 20 minutes on hold but saved me tons of headache. They emailed me a statement showing when I received the free stocks. Might be worth a try before making any assumptions about dates.

I went through this exact same situation last year with Robinhood promotional stocks! Here's what worked for me: First, check your email archives for ANY communication from Webull around the time you opened your account - they usually send notifications when promotional stocks are deposited, even if it's buried in promotional emails. If you can't find the exact dates, the IRS allows "reasonable estimates" for small amounts like this. Since you mentioned these were likely from account opening, use that date as your acquisition date. For the cost basis, promotional stocks are typically considered gifts with $0 basis, meaning the full sale amount is taxable as capital gains. For the holding period, if you're truly uncertain, reporting as short-term is the conservative approach since it results in higher tax (ordinary income rates vs capital gains rates). The IRS prefers when taxpayers err on the side of paying more rather than less. Don't skip reporting them entirely - even small amounts need to be reported, and the 1099-B means the IRS already knows about the sales. The good news is that for amounts this small ($12.46 and $8.75), the actual tax difference between short and long-term treatment is probably less than $5 total. Document your reasoning and move forward - you're overthinking what should be a minor part of your return!

Does anyone know if you can e-file an amended return for a situation like this? Last time I had to amend (2023 taxes), I had to mail it in and it took forever to process. I'm worried about mailing in an amendment now with all the IRS backlogs I keep hearing about.

I'm dealing with a similar situation right now! Just received two late K-1s last week - one from a real estate partnership and another from what I thought was a closed investment account. It's so frustrating when you think you're done with taxes and then these forms show up. From what I've learned, the key is not to panic. You definitely need to amend, but since your K-1 shows a loss, you're likely going to get additional money back rather than owing more. The IRS understands that K-1s often arrive late - it's actually pretty common. One thing I'd suggest is gathering all your original tax documents before you start the amendment process. You'll need to recreate your tax situation and then add in the K-1 information. Also, keep detailed records of when you received the K-1 in case the IRS has any questions later. The fact that you're proactively handling this shows good faith on your part.