@Hassan Khoury I had this same issue last year! The key is to file Form 8822 ASAP like Victoria mentioned, but also consider setting up informed delivery with USPS so you can track what mail is coming to your address. That way you'll know immediately if the letter gets sent to the wrong place. Also, if you have access to your IRS online account, sometimes they'll update your verification status there before the letter even arrives. Good luck!

Just went through this exact situation! The IRS will send it to whatever address they have on file, which should be from your most recent return. But here's what really helped me - I called my local IRS Taxpayer Assistance Center and explained the address change situation. They were actually able to update my address over the phone and confirm where the letter would be sent. Way faster than waiting for Form 8822 to process. You can find your local office on IRS.gov under "Contact Your Local Office." Worth a shot if you're worried about timing!

Has anyone used TurboTax to report this kind of situation? I'm having trouble finding where to manually enter a 1099-R that I haven't received yet.

One thing that might help ease your concerns - I had almost the exact same situation last year. Made an excess contribution, caught it early, removed it before the deadline, but didn't get the 1099-R until the following January. I filed my taxes self-reporting the distribution with code P just like you're planning to do. When I eventually received the official 1099-R the next year, all the numbers matched perfectly with what I had self-reported. No issues, no amended returns needed. The key is being accurate with your amounts and using the correct distribution code. Since you documented everything and have your broker statements showing the withdrawal, you should be fine. Just make sure to keep all those records in case the IRS ever asks for verification down the road. Your approach with the $740.25 withdrawal amount is correct - you only need to remove what's actually there after any investment changes. Good luck with your filing!

11 Does anyone know if the recent tax law changes affected the underpayment penalty thresholds at all? I thought I read something about them being more forgiving for 2024 taxes.

I'm going through something similar right now - divorced last year and completely missed updating my W-4. The quarterly penalty calculation mentioned above is spot on and really important to understand. One thing I learned from my tax preparer is that you should also check if you had any major changes in income during the year, not just withholding. If your income dropped significantly after the divorce (like losing a spouse's income or changing jobs), that can actually work in your favor for the safe harbor calculations. Also, don't forget to update your filing status to single or head of household if you have kids - that alone might change your tax liability enough to affect whether you even owe a penalty. The IRS is generally pretty reasonable about life changes like divorce as long as you document everything properly on Form 2210.

I'm dealing with a similar situation but for my elderly father's 403(b) account. He missed his 2023 RMD of $2,400 and we just caught it last month. We've already taken the distribution to correct it. One thing I learned from our tax preparer is that you should also keep documentation showing when you took the corrective distribution - bank statements, 1099-R forms, etc. The IRS may ask for proof that you actually corrected the mistake, especially if there's a gap between when you missed the RMD and when you took it. Also, if your RMD was calculated based on December 31, 2022 account balance, make sure that calculation was correct in the first place. Sometimes people think they missed an RMD when actually their calculation was wrong and they didn't owe one. Worth double-checking the IRS life expectancy tables to be sure. The $67.50 penalty you calculated sounds right (10% of the shortfall), but definitely go with the $0 on Line 55 approach that others have mentioned. First-time missed RMDs with reasonable cause explanations get approved for waivers most of the time.

I had this exact same confusion when I missed my 2022 RMD. The key thing to understand is that Line 55 on Form 5329 serves two purposes depending on whether you're requesting a waiver or not. If you're NOT requesting a waiver, you calculate and enter the 10% penalty amount ($67.50 in your case) and pay it with your return. If you ARE requesting a waiver (which you should since you've corrected the mistake), you enter $0 on Line 55, write "RC" next to it, and attach your explanation letter. You don't pay anything upfront. Your calculation is correct - the penalty would be $67.50 if you had to pay it. But since you've already taken the corrective distribution and have reasonable cause, you should request the waiver by putting $0 on Line 55. Make sure your explanation letter mentions that this was an honest oversight, you corrected it as soon as you realized the mistake, and you've put systems in place to prevent it from happening again. The IRS is generally very reasonable with first-time RMD penalty waivers when people show good faith by correcting the situation promptly. Don't stress too much about this - it's a very common mistake and the IRS processes thousands of these waiver requests successfully every year.

Pro tip: The best way to understand your 810 freeze is to use taxr.ai - way better than trying to piece together info from random reddit posts. It costs $1 but gives you a complete analysis of your transcript and estimated resolution date. Been using it weekly to track my progress.

Filed 1/15 and been dealing with 810 freeze for over 3 weeks now. WMR hasn't budged from "still processing" but my transcript shows the freeze code. Really hoping to see some movement soon - bills don't stop coming just because the IRS is taking their sweet time! Has anyone noticed any patterns with when these typically clear?