One thing nobody's mentioned yet - check if any of your tax debt is approaching the 10-year CSED (Collection Statute Expiration Date). If so, sometimes it's better to wait it out than agree to a payment plan! When you enter into an installment agreement, the statute is suspended during the plan plus 30 days after it ends. So you could accidentally extend the life of tax debt that would otherwise expire soon.

The combination of CNC status on multiple years while they actively pursue one specific year creates a complex situation that requires careful navigation. Here's my take based on what you've shared: First, don't feel bad about rejecting their initial offer - $500+ monthly escalating payments for someone who already has most years in CNC status due to financial hardship seems excessive. The fact that six of your seven years have TC 530 codes is significant leverage. Regarding the single-year payment plan issue: While IRS reps often say they can't do single-year agreements, there are exceptions. You should specifically ask about a "streamlined installment agreement" for just the 2019 liability, referencing the fact that the other years are already determined to be uncollectible due to your financial situation. The 2010 debt extending to 2026 is worth investigating further. That's a 16-year collection period, which suggests multiple statute extensions occurred (possibly previous payment plans, OIC applications, or bankruptcy). Request a copy of your CSED worksheet to understand exactly why it was extended. When they ask for financial statements, be prepared to demonstrate that your financial situation hasn't materially changed since the October 2022 CNC determination. If it hasn't improved, you might even be able to get the 2019 year put into CNC status as well. The employer withholding lock-in can be challenged once you establish a payment agreement and demonstrate compliance. This isn't automatic but is definitely possible. My advice: Call back, reference the CNC status on your other years, and propose a reasonable payment amount for just 2019 that aligns with your demonstrated financial capacity from the CNC determination.

Anyone know what happens if you DO erroneously report a 1099-Q trustee transfer on your tax return? My accountant included mine last year before I realized it wasn't necessary. Should I file an amended return?

Just went through this exact same situation! I was panicking when I saw Box 6 checked on my 1099-Q forms after doing trustee-to-trustee transfers between 529 plans. Called my tax preparer and she confirmed what everyone else is saying here - these forms don't need to be reported on your tax return at all. The key thing to remember is that Box 4 being marked as "Trustee to Trustee Transfer" is what matters. That tells the IRS (and you) that this wasn't a taxable distribution. Box 6 being checked is just a quirk of how the form works - since technically Fidelity received the funds, not your children. I kept copies of the forms in my tax records folder, but didn't enter them into my tax software. Filed my return normally and everything went smoothly. Don't stress about it - you're handling it correctly by questioning it, but there's really nothing you need to do!

I went through something very similar with a 401k-to-IRA rollover I missed on my return. One thing that helped me was creating a timeline of events to include with my amendment - dates of the original 401k distribution, when the funds were received by the new IRA custodian, and confirmation that no funds were ever distributed to me personally. Also, if you haven't already, contact both your old employer's plan administrator and your new IRA custodian to get written confirmation that this was a direct trustee-to-trustee transfer. Some custodians will provide a letter specifically for tax purposes that clearly states the rollover was completed according to IRS regulations. Having that documentation attached to your amendment makes it crystal clear to the IRS that this was a non-taxable event. The peace of mind from getting this handled properly is worth the small effort of filing the amendment now rather than potentially dealing with IRS notices later.

I just want to echo what everyone else is saying - definitely file the amendment sooner rather than later! I had a similar situation with a 403b rollover that I forgot to report, and I made the mistake of waiting to see if the IRS would notice. They did notice (about 4 months later), and while there wasn't a penalty since it was non-taxable, I had to spend time responding to their notice and providing all the documentation I could have just included with an amendment from the start. The IRS notice made it sound much more serious than it actually was, which caused unnecessary stress. One tip that helped me - when I finally responded to the IRS notice, I included a cover letter that clearly stated "NON-TAXABLE DIRECT ROLLOVER" at the top in bold letters, followed by a brief explanation. This seemed to help the IRS processor understand the situation quickly. You could do something similar with your amendment to make it crystal clear what happened. Since you already know about the issue and have time to handle it properly, filing the amendment now will save you from that whole back-and-forth process with IRS correspondence later.

I've had good luck with FaxZero for one-off IRS documents. It's completely free for up to 3 pages (perfect for most tax forms) and you don't need to create an account. Just upload your PDF, enter the IRS fax number, and hit send. They email you a confirmation once it goes through. The only downside is there's a small ad on the cover page, but the IRS doesn't seem to care about that. I've used it multiple times for amended returns and CP notices without any issues. For security, they automatically delete your documents from their servers after transmission. If you need more than 3 pages, their premium service is only $1.99 for up to 25 pages, which is way cheaper than driving to find a fax machine or setting up a monthly subscription somewhere.

I've been using FaxBurner for IRS communications and it's been solid. It's app-based which I prefer over browser services, and you get 5 free fax pages per day which covers most tax document needs. The interface is really intuitive - just snap a photo of your document or upload a PDF, enter the fax number, and send. What I like most is that they provide detailed delivery reports showing exactly when the IRS received your fax, down to the minute. This has saved me twice when dealing with deadline issues. They also store your sent faxes in the app for easy reference later. For sensitive tax docs, they use bank-level encryption and automatically purge documents after 30 days. If you need more than the daily free pages, you can buy credits pretty cheaply. Definitely worth checking out if you prefer mobile apps over web-based services.

I'm dealing with a similar AMT credit situation from 2022 and this thread has been incredibly helpful! Just wanted to add that if you're working with a tax professional, make sure they're experienced with AMT credits specifically. I learned the hard way that not all CPAs are equally familiar with the mechanics. My first accountant completely missed that I had AMT credits available and I ended up paying way more in taxes than I should have. When I switched to someone who specializes in stock compensation and AMT issues, they caught the error and helped me file amended returns to claim the credits I was entitled to. For anyone in a similar boat - don't be afraid to ask your tax preparer directly about their experience with AMT credit carryforwards. It's a specialized area and you want someone who really knows the rules inside and out, especially when you're dealing with larger amounts like $50k.

This is such a helpful thread! I'm in a similar situation with about $35k in AMT credits from 2023 option exercises. One thing I wanted to add that hasn't been mentioned yet - make sure you understand how state taxes interact with federal AMT credits if you're in a high-tax state. I found out the hard way that California (where I live) has its own separate AMT system, so you can end up with both federal and state AMT credits to track. The recovery mechanics work similarly but they're completely separate - you can't use federal AMT credits against state taxes or vice versa. Also, if you're planning to move to a different state in the coming years, that could affect your recovery timeline since different states have different tax rates and AMT rules. Something to factor into your financial planning if you're trying to optimize when you'll see that money back.