This is such a helpful thread! I'm in a similar situation with ES futures trading but using FreeTaxUSA instead of TaxAct. Quick question for everyone - when you say "boxes 8-11" on the 1099-B, are you referring to the aggregate profit/loss amounts? My Interactive Brokers 1099-B shows totals in what looks like box 8 (Net Gain or Loss), but I want to make sure I'm looking at the right numbers. Also, has anyone had experience with FreeTaxUSA's Section 1256 contract entry? I'm hoping it's as straightforward as what you all described for TaxAct. The 60/40 rule seems like it should simplify things once I find the right section in the software. Thanks for all the great advice - this thread probably saved me from hours of confusion!

Just wanted to share my experience since I went through this exact same situation last year with ES futures on Interactive Brokers and Ninja Trader. You're absolutely right to be confused - the 1099-B for futures looks completely different from stock trading forms. The key thing to understand is that those totals in boxes 8-11 represent your aggregate P&L for the entire year, already calculated with the mark-to-market accounting that futures require. In TaxAct, you'll want to navigate to the "Investment Income" section, then look for "Other Investment Income" or "Section 1256 Contracts." Don't try to enter this under regular stock trades or capital gains - that's where people get tripped up. When you enter the aggregate amounts from your 1099-B forms, TaxAct will automatically generate Form 6781, apply the 60/40 tax treatment, and flow everything to Schedule D. You definitely don't need to enter hundreds of individual trades - that would actually be incorrect for futures contracts. One tip: if you have 1099-B forms from multiple brokers (like you do), add up all the net gains/losses first, then enter the combined total in TaxAct. The IRS wants to see one aggregate number on Form 6781, not separate entries for each broker.

Not sure if anyone mentioned this yet, but you should file Form 3949-A with the IRS to report your employer for suspected tax fraud. Not filing W-2s for multiple employees over multiple years is almost certainly intentional - they were probably pocketing the tax money they withheld from your paychecks. That's theft!

This is a serious red flag situation that you need to handle carefully. As others have mentioned, the POA request is highly suspicious - there's no legitimate reason a company's CPA would need power of attorney from you to fix their own filing obligations. Here's what I'd recommend doing immediately: 1. **Document everything** - Save all communications with the CPA, keep copies of your pay stubs, W-2s, and the IRS notice 2. **Get your transcripts** - Request both Wage & Income and Account transcripts from the IRS online for all affected years 3. **Don't sign anything** - Absolutely do not give them POA or sign any documents The fact that this spans multiple years and involves withholding 45% from your severance suggests they may have been mismanaging payroll taxes for a long time. If they withheld taxes from your pay but never remitted them to the IRS, that's essentially theft. You might also want to check if other former employees are having similar issues - if this is affecting multiple people, it strengthens the case for deliberate non-compliance rather than an administrative error. Consider consulting with your own tax professional who can help you navigate this without any conflicts of interest. The company's CPA is looking out for the company, not for you.

Call the tax advocate service! Sometimes they can see stuff we cant on our transcripts

Same thing happened to me last month! Had an update with no new codes and was freaking out. Turns out it was just the system doing an internal review. Two weeks later I got my 846 code and DDD. Don't lose hope - sometimes these mystery updates are actually a good sign that they're still processing your return! 🤞

Check your 2023 Account transcript too. Sometimes updates show there first before your return transcript changes.

I'm experiencing the exact same thing! My as-of date updated yesterday but zero movement on any codes or processing. Filed 1/27 and it's been radio silence since acceptance. The waiting game is brutal when you're depending on that refund. Has anyone noticed if there's a pattern to when they actually start processing after the as-of date changes?

This thread has been incredibly eye-opening! As someone who's always tried to be meticulous about tax compliance, I never realized how complex this particular area of tax law could be. What strikes me most is how this creates a situation where the most law-abiding response (reporting all income) could potentially create the most legal jeopardy. It's like the tax code is forcing people into a game of legal chess where every move has potential consequences. I'm wondering about the practical side of this - if someone were to report income using those vague categories like "consulting" or "other income" that people have mentioned, does the IRS ever follow up asking for more specific documentation? Like, do they ever request invoices or contracts for that "consulting" work? It seems like there would be a natural tension between satisfying the reporting requirement and avoiding self-incrimination. The Fifth Amendment protection is interesting in theory, but I imagine in practice it gets pretty murky when you're trying to file accurate tax returns without providing details that could be used against you later. This whole discussion really highlights how much more complicated tax compliance can be than most people realize. Thanks to everyone who shared examples and insights - this has definitely given me a lot to think about regarding how tax policy intersects with criminal law.

This is honestly one of the most educational threads I've read on here! As someone who does freelance work and sometimes gets paid in cash, I never realized how complex the reporting requirements could get for "non-traditional" income sources. What really fascinates me is how this whole system seems to create a weird parallel between tax compliance and criminal justice. Like, the IRS essentially becomes this backup enforcement mechanism when traditional law enforcement can't make other charges stick. It's brilliant from a law enforcement perspective, but creates such a moral and legal maze for individuals. Reading through all these examples and scenarios, it seems like the key takeaway is that the tax code doesn't really care about the legality of your income source - it just wants its cut. But then you're left navigating this impossible balance between legal compliance and potential self-incrimination. I'm curious - for people who are in legitimately gray areas (like some cryptocurrency transactions or cash-based businesses that operate in legal but poorly defined spaces), do the same principles apply? It seems like this could affect way more people than just those involved in clearly illegal activities. The tools and services people have mentioned in this thread (like the AI tax advisor and the IRS callback service) seem really useful for navigating these complex situations without having to have awkward conversations with traditional tax preparers about hypothetical scenarios!