Slightly different perspective - I'd recommend talking to a tax attorney who specializes in partnership taxation, not just your CPA. While IRC 1341 seems like the right approach, there are nuances with carried interest that might affect your specific situation. For example, depending on how your partnership agreement was structured, there might be arguments for treating this as a capital loss rather than a Claim of Right issue, which could have different tax implications. A specialized attorney could also help if the IRS challenges your position.

This is a complex situation that touches on several areas of tax law. Based on your description, IRC 1341 does seem like the appropriate approach, but I'd strongly recommend getting specialized advice given the amounts involved. One thing to keep in mind is timing - make sure you're clear on when exactly the repayment obligation crystallized. For IRC 1341 purposes, it matters whether the repayment obligation arose in 2024 when you left, or if it was always contingent on not meeting the vesting requirements. Also, since you mentioned your accountant is researching this, make sure they're familiar with Revenue Ruling 2019-11, which provides guidance on applying IRC 1341 to partnership distributions. The IRS has been more active in this area recently, so having current guidance is important. The documentation everyone else mentioned is crucial - you'll want everything in writing showing the original allocation, the tax distributions made to cover your liability, and the subsequent repayment requirement. This creates a clear paper trail that supports your position. Given the complexity and dollar amounts, consider getting a second opinion from a tax professional who specializes in partnership taxation and carried interest. The intersection of these rules can create opportunities or pitfalls that aren't immediately obvious.

Have you considered that this might actually be a blessing in disguise? If you file again with a different company, wouldn't that just create more confusion in the system? And what happens if both returns suddenly get processed? Would the IRS think you're trying to claim twice? Sometimes patience, while frustrating, is the best approach with tax matters, wouldn't you agree?

I went through something very similar with FreeTaxUSA last year. After 4 weeks of "not received" on WMR, I was ready to file again too. Here's what saved me from making a huge mistake: 1. **Get your IRS transcript first** - Go to irs.gov and create an account to view your 2024 transcript. This shows WAY more detail than WMR and updates faster. 2. **Check for ACK (acknowledgment) from Chime** - Look for an email or notification with your submission ID. If you have this, the IRS definitely received it. 3. **21-day rule is real** - The IRS legally has 21 days to process e-filed returns. You're at 3 weeks, so you're right at the edge. DO NOT file twice! I almost did and my tax preparer warned me it would create a "duplicate return" flag that could delay your refund by months. Since you need this money for medical bills, that's the last thing you want. If the transcript shows nothing after checking this weekend, then call the IRS Monday morning at 7am sharp (800-829-1040) when call volume is lowest. Good luck!

I understand the frustration of watching your investments lose value, especially in a Roth IRA where you can't deduct the losses. As others have mentioned, the tax-free nature of Roth IRAs means you can't write off losses on your taxes - that's the trade-off for tax-free growth. However, before you make any drastic moves, consider that you still have the most valuable benefit of the Roth intact: all future growth will be tax-free. Instead of selling everything and trying to claim losses (which won't work), you might want to: 1. Rebalance within the Roth - sell the underperforming tech stocks and diversify into index funds or other investments 2. Keep contributing regularly to dollar-cost average your way back up 3. Remember that you have decades until retirement for these investments to potentially recover The psychological impact of losses is real, but don't let short-term pain cause you to give up the long-term tax advantages that make Roth IRAs so powerful for retirement savings.

I feel your pain on watching those tech stocks tank - been there myself with some "can't miss" investments that definitely missed! As everyone has explained, Roth IRA losses unfortunately can't be deducted, but don't let that discourage you from the bigger picture. Here's what I'd suggest: instead of selling everything and closing the account, use this as an opportunity to reassess your investment strategy within the Roth. Sell those underperforming tech stocks and diversify into something more stable like broad market index funds. You'll still keep all the tax advantages of the Roth while potentially setting yourself up for better long-term growth. The silver lining is that any future recovery will be completely tax-free when you withdraw it in retirement. That's still an incredibly valuable benefit that's worth preserving, even after taking some hits on individual stock picks.

Something important nobody's mentioned yet - if you're getting income through these apps that will now be reported on 1099-Ks, you probably need to be making quarterly estimated tax payments throughout the year, not just paying at tax time. I got hit with an underpayment penalty last year because I wasn't doing this with my side gig income. The IRS expects you to pay taxes as you earn income, not all at the end of the year. If you're going to owe more than $1,000 at tax time, you should be making quarterly payments. This whole $600 reporting change means a lot more people will need to be thinking about this!

This is such a helpful thread! I'm in a similar boat with my freelance graphic design work - been using Venmo and PayPal for client payments and had no idea about this $600 threshold change. One thing I wanted to add that might help others: if you're scrambling to get your records organized like I was, your bank statements can be a lifesaver for tracking business expenses. I went through mine and found tons of deductible purchases I'd forgotten about - Adobe subscription, stock photo purchases, even mileage to client meetings. Also, for anyone doing this kind of side work, consider opening a separate business checking account if you haven't already. Makes tracking so much easier and looks more professional to clients. Some banks even offer free business accounts for small operations. It's one of those things I wish I'd done from the start instead of mixing everything with my personal account. Thanks everyone for sharing your experiences - this whole thread has been incredibly informative!

Pro tip: Watch for code 846 on your transcript every morning around 3am-6am EST. That's when they usually update. Also check your WMR tool - sometimes it updates before transcripts do.

Looking at your transcript, you're actually in a pretty good spot! The fact that you have codes 150, 806, and 768 already showing means your return has been accepted and is moving through the system. The $5 amount next to code 150 is totally normal - that's just how the IRS displays the tax liability line when you have a refund coming. Your cycle code 20250505 puts you in the 5th week processing cycle for 2025, which typically means updates happen on Fridays. Since your processing date shows 02-17-2025, you should keep checking your transcript for updates - especially watch for any 570/971 codes (which would indicate additional review) or hopefully the golden 846 code with your refund date! The April 15th dates on your 806 and 768 codes are just system placeholders, not actual processing dates. With your withholding ($1,795) and EIC ($6,930) totaling $8,725, you should see that full amount when the 846 code posts. Keep checking Friday mornings around 6am EST for transcript updates! 🤞