Has anyone tried requesting records directly from the Social Security Administration? They keep track of your earnings history and might be able to provide verification of your income for that year.

I went through almost the exact same situation a few years ago! My former employer was being completely unhelpful and I was panicking about my audit deadline. Here's what worked for me: First, definitely try the IRS Wage and Income Transcript that others mentioned - it's free and contains everything from your W-2. But if you're having trouble accessing it online (their identity verification can be tricky), you have another option. Contact your state's Department of Labor or Employment Security office. They often have records of wages reported by employers for unemployment insurance purposes. While this isn't a perfect substitute for a W-2, it can provide additional documentation to support your case with the auditor. Also, don't be afraid to push back a little with the auditor about your employer's non-cooperation. Document every attempt you've made to contact them (dates, methods, responses) and present this to the auditor. Sometimes they can issue a formal request to the employer on your behalf, which carries more weight than your individual requests. The key is showing good faith effort to obtain the documents. Most auditors are reasonable when they see you're genuinely trying to comply but facing obstacles beyond your control.

As someone who works in cybersecurity, I'd add that you should also check the physical characteristics of the letter itself. Legitimate IRS correspondence uses specific paper stock and printing quality that's difficult to replicate. Look for perforated edges if it's a multi-part form, consistent font spacing, and clear, high-resolution printing of the IRS seal. Scammers often use lower-quality paper or inkjet printing that looks slightly "off" compared to official government correspondence. Also, the mailing envelope should have official IRS return addresses and postmarks - never from generic PO boxes or private mailing services. When in doubt, take photos of both the letter and envelope and compare them to samples on the official IRS website before proceeding with any verification steps.

Great question about verifying 5071C letters - I went through this same concern last year! Here's what helped me feel confident about the authenticity: First, I logged into my IRS online account at irs.gov to see if the same notice appeared there (it did). Second, I called the main IRS line at 800-829-1040 rather than any number on the letter itself - they confirmed it was legitimate and walked me through the process. The verification itself was straightforward through IDVerify.irs.gov, though you'll need access to your credit report information or financial account details to complete it. One tip: don't wait too long to respond, as there's typically a 30-day window before your return gets further delayed. The whole process took me about 15 minutes once I verified it was legitimate, and my refund was released within a week after completion.

This thread has been absolutely invaluable! As a newcomer to homebuying, I had no idea property taxes were this complex. The explanation about escrow accounts finally makes sense - I was picturing having to save up thousands for annual tax bills. I'm particularly grateful for the warnings about reassessment after purchase. That 40% increase Emma's friend experienced would have completely blindsided me! I'm definitely going to use the tax rate calculation method suggested to estimate post-purchase taxes rather than just relying on current assessments. The point about special assessments for infrastructure projects is eye-opening too. I've been looking at some newer developments and now I'm wondering what future projects might be planned that could affect taxes. Definitely adding questions about this to my list for realtors and checking those city council meeting minutes. One question for the group: for those who successfully applied for tax reduction programs, how long did it typically take to get approved? I want to make sure I start the process early enough but I'm not sure if I should apply before I even have a house under contract or wait until after closing. Thanks everyone for sharing such detailed experiences - this is exactly the kind of real-world knowledge that's impossible to find in generic homebuying guides!

This has been such an incredibly helpful thread! I'm a first-time homebuyer who's been stressing about understanding all the property tax implications, and you've all covered so much ground that I hadn't even considered. The breakdown of how escrow works with monthly mortgage payments is a huge relief - I was panicking about having to come up with thousands in lump sum payments throughout the year. And the warning about reassessment after purchase is something I definitely need to factor into my budget planning. I'm particularly interested in the tax analysis tools that Paolo mentioned. Being able to upload property tax documents and get a clear breakdown sounds like exactly what I need to compare different properties I'm considering. Has anyone used these tools for properties in different states? I'm looking at houses in both Texas and Florida, and I know the tax systems are quite different between the two. Also, the advice about starting tax reduction program applications early is noted - I'd rather be overprepared than miss out on potential savings because of timing issues. The special assessment warning from Layla is something I hadn't thought about at all, but could be a major budget factor. Thanks to everyone for sharing your real experiences and practical tips. This thread should honestly be required reading for all first-time homebuyers - it's filled with the kind of specific, actionable information that's impossible to find elsewhere!

Leslie, I went through something very similar when I inherited my father's C corp a few years ago. The QSub route you're considering is unfortunately a non-starter - as others have mentioned, it triggers immediate taxation on all the accumulated earnings through the deemed liquidation. What ended up working for my situation was a carefully timed straight C-to-S election on the original corporation, followed by strategic distributions over several years to minimize the tax hit. The key was understanding the ordering rules for S corp distributions and planning around the built-in gains tax period. One thing I learned the hard way is that you absolutely need to get professional advice on this - the tax implications are complex and the penalties for getting it wrong are severe. The accumulated earnings tax alone could be brutal if not handled properly. I'd strongly recommend getting a ruling request from the IRS for your specific situation before making any elections. Also, don't overlook simpler alternatives like taking reasonable compensation as an employee of the C corp or exploring whether any of the earnings qualify for the reduced tax rates on qualified dividends. Sometimes the straightforward approach ends up being more cost-effective than complex restructuring schemes.

@Leslie Parker, I've been following this discussion with great interest since I'm dealing with a somewhat similar situation with my late grandfather's C corp. One alternative that hasn't been mentioned yet is potentially liquidating the C corporation over multiple tax years using installment treatment under Section 453. If the C corp has assets that could be sold rather than distributed directly, you might be able to structure the liquidation to spread the tax impact over several years. This won't eliminate the double taxation issue, but it can help manage the tax burden by keeping you in lower marginal tax brackets each year. Another consideration is whether any of the accumulated earnings might qualify for the Section 1202 qualified small business stock exclusion if the C corp meets the requirements. Depending on when your uncle acquired the stock and the nature of the business, you might be able to exclude up to $10 million of gain from federal taxes. I'd also echo what others have said about getting professional help - this is definitely not a DIY situation. The interaction between the accumulated earnings tax, built-in gains tax, and personal income tax rates creates a complex web that requires careful analysis of your specific circumstances.

Don't forget about state tax returns! Depending on your state, you may need to file a state tax return for the trust as well. Some states have different filing thresholds than the federal $600 income requirement. Also, if the property has appreciated significantly since your mother purchased it, the stepped-up basis provision is HUGELY beneficial. The basis becomes the fair market value at date of death, which could save tens of thousands in capital gains taxes.

I'm so sorry for your loss, Lucy. Being an executor for the first time is overwhelming, especially when dealing with trust taxation. A few additional points that might help you: 1. **Get organized early** - Start gathering all necessary documents now: the trust document, your mother's death certificate, property appraisals, and any financial statements. You'll need these for multiple filings. 2. **Consider quarterly estimated taxes** - If the house sale generates significant capital gains and you're distributing the proceeds to yourself, you might need to make estimated tax payments to avoid underpayment penalties. 3. **Document everything** - Keep detailed records of all expenses related to maintaining and selling the property. Many of these costs can be deducted against the gain, including realtor commissions, staging costs, repairs, and legal fees. 4. **Timeline planning** - Since you're selling in 2023, you have until April 15, 2024 to file the trust's Form 1041. However, if you expect a large tax liability, consider making quarterly payments throughout 2023. The stepped-up basis is indeed a huge advantage here - your $30,000 potential gain is much better than what it could have been if calculated from your mother's original purchase price. Make sure to get a formal appraisal dated as close to her date of death as possible to support that basis.