Another thing to consider: if your dad itemizes deductions, he may need to reduce the theft loss by 10% of his AGI and $100. But if he can claim it as an investment theft loss on Schedule A (instead of a capital loss), he won't be limited to the $3,000 annual deduction limit for capital losses.

Based on what everyone's shared here, it sounds like your dad has a solid case for claiming this as a theft loss. The key points I'm seeing are: 1. Make sure you have all the SEC documentation proving it was officially declared a Ponzi scheme 2. Use Form 4684 and possibly Form 8949 as mentioned by Ravi 3. The timing matters - claim it in the year the SEC declared it fraudulent, not when he invested 4. Revenue Procedure 2009-20 could be your best friend here - lets you deduct 95% of the loss right away Given that your dad is on a fixed income and this hit him so hard financially, I'd really recommend getting professional help to make sure you maximize the tax benefits. Whether that's a CPA experienced with investment fraud or one of those document analysis services people mentioned, the potential tax savings could be substantial. Also document EVERYTHING - bank statements, original investment paperwork, SEC filings, settlement details. The IRS will want a clear paper trail showing the original investment amount and what was recovered. Hope your dad can get some financial relief from this terrible situation!

I can completely relate to your panic - I made a nearly identical mistake three years ago when I accidentally put "Alexandar" instead of "Alexander" on my return! I was absolutely convinced it would cause major delays or problems with my refund. Here's what I learned from that experience: Your $2,850 refund should process completely normally because the IRS primarily uses your Social Security Number as the identifier, not your name spelling. As long as your SSN is correct (which it sounds like it is), that one missing "e" won't affect anything. I ended up calling the IRS taxpayer assistance line at 1-800-829-1040 about a week after I noticed my mistake. The hold time was definitely frustrating (about 45 minutes), but the agent I spoke with was really understanding and confirmed that minor spelling errors like this are incredibly common during tax season. She verified that my refund was processing normally and added a note to my account with the correct spelling for future filings. The fact that your return has already been accepted by the IRS is actually a really good sign - if there was a serious matching issue between your name and SSN, their system would have likely flagged or rejected it during initial processing. You could also file Form 8822 to officially correct the spelling, but honestly, for such a minor one-letter difference, the phone call approach worked perfectly for me. Don't stress too much about this - you're definitely not the first person to make this exact mistake, and you won't be the last!

I completely understand your panic! I had this exact same issue two years ago - put "Kristopher" instead of "Christopher" on my return and was absolutely convinced it would mess everything up. But here's the reassuring truth: your refund should process just fine! The key thing everyone's mentioned is absolutely correct - the IRS uses your SSN as the primary identifier, not your name. That missing "e" in "Alexandr" vs "Alexander" won't affect your $2,850 refund processing at all, as long as your Social Security Number is accurate on the return. I called the IRS at 1-800-829-1040 about my situation (yes, the hold was rough - about an hour - but totally worth it for peace of mind). The agent confirmed that spelling variations like this are incredibly common and their systems handle them routinely. She also added a note to my account with the correct spelling, which felt great for future filings. The fact that your return was already accepted is actually a really positive sign! If there was a serious mismatch between your information and their records, the system likely would have flagged it during initial processing rather than accepting it. You could file Form 8822 to officially correct it, but honestly, just calling to get confirmation and have them note the correct spelling worked perfectly for me. Don't lose sleep over this - you're definitely not alone in making this type of mistake, and it's far from the tax disaster it feels like right now!

can someone explain why we even need to worry about this ein stuff when converting? i mean i get that an llc gives you liability protection but why does the irs care if its the same business just with a different legal structure?? seems like unnecessary bureaucracy to me.

Just went through this exact conversion process a few months ago and can confirm what others have said - you definitely need a new EIN for your LLC. The confusion often comes from people thinking they can "transfer" an EIN, but that's not how it works. Here's what I learned: Your DBA is tied to your personal SSN or sole proprietor EIN, while your LLC is a completely separate legal entity that needs its own tax identification number. Think of it like this - if you were to close your LLC tomorrow, your personal tax obligations would still exist separately. The process is actually pretty straightforward once you understand it: 1. File your LLC formation docs with your state first 2. Apply for a new EIN online at irs.gov (takes 5 minutes, get it instantly) 3. Use your old EIN for final sole proprietor tax filings 4. Start using your new EIN for all LLC business going forward Don't overthink it - the IRS chat service is notoriously unhelpful for specific questions like this. The online EIN application is really the easiest route. Just make sure your LLC paperwork is filed with your state before applying for the EIN.

Yes, you can definitely deposit your tax refund check into your mom's account! This is actually pretty common for people who don't have their own bank accounts yet. The key is proper endorsement - you'll need to sign the back of the check and write "Pay to the order of [your mom's full name]" above your signature. Your mom will then need to sign below your signature. Most banks will accept this as long as you both have valid ID and can explain the situation if asked. Some banks are stricter than others, so it might help if you both go to the bank together for the deposit. This won't cause any issues with the IRS at all - once they issue the refund check to you, they don't track where you deposit or cash it. If for some reason the bank gives you trouble, you have other options like check cashing services, loading it onto a prepaid debit card, or mobile deposit through your mom's banking app. But honestly, most banks handle endorsed checks like this routinely. Just make sure both signatures are clear and legible!

Just to add another perspective - I work at a bank and deal with these situations regularly. The endorsed check method everyone's mentioned absolutely works, but I'd recommend a couple extra tips to make it smoother: 1. When you write "Pay to the order of [mom's name]" make sure you use her exact name as it appears on her bank account - middle initial and all if that's how it's listed. 2. If possible, have your mom call her bank first to let them know she'll be depositing an endorsed check from her child. Some banks flag unusual activity, and a heads up can prevent delays. 3. Keep a photo of both sides of the endorsed check before depositing, just for your records. The IRS won't care at all where you deposit it - they've already processed your refund and sent it to you. Once that check is in your hands, it's your money to do with as you please. I've never seen any tax complications from someone depositing their refund into a family member's account.

Just a heads up that if you have foreign bank accounts, make sure whoever you work with knows about FBAR requirements (FinCEN Form 114). Those have a different deadline than your tax return - technically due April 15 but automatically extended to October 15 if you miss the April date. Unlike tax returns where you file an extension form, the FBAR extension is automatic, but the October deadline is firm. If your current CPA is handling those for you and doesn't complete them, you'll need to make sure a new preparer addresses them or you do them yourself. The penalties for missing FBAR filings can be really steep compared to regular tax return penalties.

I've been through a similar situation and here's what I learned: communication is key, but so is having a backup plan. Since you don't have a signed contract, you're in a good position to make changes if needed. First, give your current CPA one more chance with a firm deadline - something like "I need my completed returns by [date 2 weeks from now] or I'll need to retrieve my documents and find alternative preparation." Be polite but direct about your concerns regarding the October deadline. If they can't commit to that timeline, don't hesitate to switch. July still gives you plenty of time to find someone new. When interviewing new CPAs, specifically ask about their experience with foreign bank accounts and FBAR filings since that seems to be part of your situation. Also ask about their current workload and realistic completion timeframes. One thing that helped me was getting organized before switching - I made copies of everything I'd given the original CPA and created a simple summary of my tax situation. This made the transition much smoother and showed the new preparer I was serious about meeting deadlines. The peace of mind from working with a responsive professional is worth the hassle of switching. Better to deal with the inconvenience now than stress about missing the October deadline later.