I just went through this last year. The most important thing is timing - if the annuity company already cut the check to the estate with 20% withholding, unfortunately you've likely lost the ability to do any kind of inherited IRA rollover. The distribution to the estate is considered the taxable event. Remember that on the 1041, you'll report the FULL amount of the annuity as income (including the 20% withheld), and then show the withholding as a credit. When the estate distributes the money to you, you'll receive a K-1 showing your share of the estate's income, deductions, etc. One potential silver lining - check if the deceased had any unrecovered investment in the annuity contract. If they made after-tax contributions to the annuity, a portion of the distribution might be non-taxable return of basis.

I'm dealing with a very similar situation right now with my aunt's estate. One thing that might be worth exploring - and I'm not sure if this applies to your specific case - is whether the annuity company properly followed the required distribution procedures when there's no named beneficiary. In some cases, if the annuity company didn't give proper notice to potential beneficiaries or follow state law requirements for estate distributions, there might be grounds to challenge the distribution method. I've heard of situations where this led to the ability to "undo" the estate distribution and have it paid directly to the heir instead. You might want to review the annuity contract terms and your state's laws about how these distributions should be handled. If there were procedural errors, it could potentially open up options that wouldn't normally be available once the money hits the estate. Also, make sure you're not missing any deadlines for estate tax elections or other time-sensitive decisions. Some states have different rules about inherited annuities that could affect your tax situation.

Something that hasn't been mentioned yet - don't forget to consider Section 179 expensing or bonus depreciation for these POS systems! Assuming your client has enough income, you might be able to write off the entire cost in year 1 anyway, making the 5 vs 7 year question less important for current tax savings. Just make sure to document your reasoning for the classification you choose in case it becomes relevant later on. I typically include a brief memo in the tax file explaining the rationale behind asset classifications that aren't explicitly covered in the IRS publications.

As someone who's dealt with this exact scenario multiple times, I can confirm that restaurant POS systems are definitely 5-year property. The confusion comes from that specific exclusion in Pub 946, but the key is understanding that they're still computer-based equipment at their core. One thing I'd add that hasn't been mentioned - make sure you're also considering any installation costs, training, and initial setup fees. These should typically be capitalized along with the equipment cost rather than expensed separately. I've seen preparers miss this and it can add up to a significant amount, especially for multi-location franchise operations. Also, if your client is planning to expand to additional locations, it might be worth having a conversation about establishing a consistent capitalization policy now. This will make future POS installations much cleaner from a tax perspective.

People here are missing the biggest difference: liability. When you use TurboTax, YOU are responsible for any mistakes. When you use H&R Block or similar services, they have some level of liability for errors they make. Most H&R Block locations offer what they call a "Peace of Mind" guarantee, which means they'll pay penalties and interest (up to a certain amount) if they make a mistake. Some also offer audit support if you get audited. You don't get that with DIY software. That said, I agree many of their preparers are just using glorified software. If you want actual tax expertise, you need an Enrolled Agent or CPA, not just any random tax preparer.

Just wanted to add - there's a huge difference between: 1. H&R Block seasonal preparers 2. H&R Block Enrolled Agents 3. Independent CPAs Last year I went to H&R Block and got a first-year preparer who missed several deductions. This year I specifically requested an Enrolled Agent at the same office, and the difference was night and day. She found an additional $3,200 in deductions the previous preparer missed AND amended my prior year return. The EA explained that she had to pass rigorous IRS testing and does continuing education every year, while the basic preparers just do the company's training course. If you go to Block, Liberty, Jackson Hewitt, etc., ALWAYS ask for an EA specifically. It might cost a bit more but worth every penny.

I'm going through this exact same situation right now! Filed my 2024 taxes in early February and got the dreaded "refund on hold" notice last week. They want my 2022 W-2 that I apparently never filed (oops!). Reading through everyone's experiences here is both reassuring and terrifying - 6-10 weeks seems to be the consensus, which means I'm looking at late April/early May for my refund. As a fellow grad student, I totally feel your pain about needing that money for summer expenses! I'm planning to send mine certified mail this week after reading all these suggestions. Has anyone tried calling the IRS upfront to ask exactly which documents they need? I want to make sure I'm not missing anything else that could cause additional delays. The last thing I want is to wait 8 weeks only to find out they needed something else too. Thanks for starting this thread - it's incredibly helpful to hear real timelines from people who've actually been through this process!

Welcome to the tax hold waiting room club! 😩 I'm currently on week 7 of waiting for my 2024 refund after mailing in my missing 2021 return. Based on what I'm seeing here, it looks like most people are getting their refunds released between weeks 6-10, so there's definitely light at the end of the tunnel. A few things I learned the hard way that might help you: 1. **Check your online account transcript weekly** - it updates before the refund status tool and shows processing codes that indicate movement 2. **Call exactly at 4 weeks** - don't wait longer because if there's an issue, you'll want to catch it early 3. **Keep detailed records** - write down dates, confirmation numbers, and who you spoke with The certified mail suggestion is spot-on. I used regular mail initially and had no way to prove they received it when I called. Had to resend everything certified, which added another 2 weeks to my timeline. For what it's worth, even though the wait is brutal, every person I've talked to who went through this process eventually got their refund. The IRS is slow but they do process these holds systematically. Hang in there - your summer ramen budget will thank you later! 🍜

I've been tracking this for years and there definitely seems to be a pattern, though it's not 100% consistent. From what I've observed, the IRS typically sends out refund batches on Tuesday evenings that hit most bank accounts Wednesday morning, and Thursday evenings that show up Friday morning. But like others mentioned, your bank's processing time is the real wildcard here. I use a local credit union and usually see deposits by 6 AM on those days, while my friends with major banks like Wells Fargo or Chase sometimes don't see theirs until later in the morning or even the next business day. The key is checking your transcript for the 846 code - that'll give you the actual issue date, then just add 1-3 business days depending on your bank's policies.

Based on my experience working in banking operations, the IRS doesn't have an official public schedule for refund deposits, but there are definitely observable patterns. The Treasury uses the Federal Reserve's ACH system, which processes Monday through Friday. Most financial institutions I've worked with receive IRS refund batches primarily on Tuesday and Thursday nights, which then post to customer accounts Wednesday and Friday mornings respectively. However, during peak filing season (February through mid-April), the IRS may process additional batches to handle the volume. The real variable is your bank - some post immediately upon receipt, others hold until their next business day processing cycle. If you're anxiously waiting, I'd recommend checking your account transcript for the 846 code rather than relying solely on WMR, as it gives you the actual issue date from the IRS side.