Has anyone run into penalties for filing a very late 1065X? I'm in a similar situation but the original return was from 2015, and I'm worried the IRS might assess penalties for the delay in marking it final.

I went through this exact same situation last year with a 2017 partnership return. Filed the 1065X about 6 years late just to mark it as final, and it was processed without any issues or penalties. A few things that helped me: First, I included a brief timeline in my explanation showing when the partnership actually ceased operations and how assets were distributed. Second, I attached a simple statement signed by all partners confirming the business had ended and assets were divided per our agreement - even though you didn't formally dissolve through state filings, this kind of documentation can be helpful. The IRS processed mine in about 8-10 weeks, and all the automated notices for "unfiled" returns stopped completely. Don't let the time delay discourage you from filing - they really do want to clean up their records when partnerships have actually ended. One small tip: when you mail the 1065X, send it certified mail so you have proof of filing date. That way if any questions come up later, you can show exactly when you submitted the correction.

DO NOT ignore the levy - it will only get worse! Trust me on this. I ignored my tax issues and ended up with wage garnishment where they took 25% of my paycheck directly from my employer. Super embarrassing and made it even harder to pay bills. Contact them ASAP and make SOME kind of arrangement. Even a small payment plan is better than nothing. They just want to see you're making an effort.

I completely understand your panic - I went through something very similar about 18 months ago. The good news is that you're taking action now, which is the most important step. Here's what worked for me: First, gather all those unopened letters (I know it's scary, but you need to see what they're saying). Then call both the IRS at 1-800-829-1040 and your state tax department. Be honest about your financial situation and ask about installment agreements. For your $5,500 federal debt, you should easily qualify for a streamlined payment plan without having to provide extensive financial documentation. The monthly payment will likely be around $75-100 depending on what you can afford. Regarding your car - while they technically could seize it, it's extremely unlikely for a debt this size, especially once you're in a payment agreement. They much prefer predictable monthly payments over the hassle of asset seizure. The $100 levy you experienced is actually their way of getting your attention. Once you establish payment plans and start making regular payments, the collection activities will stop. You've got this - the hardest part is making that first phone call, and you're already mentally preparing for it!

Just to clarify something that might help - if PayPal issued you a 1099-K for $3,750 and the new threshold is $5,000, they may have sent it to you but NOT reported it to the IRS. You should check the "Copy B" version of your 1099-K form - there's usually a checkbox or notation that indicates whether it was actually submitted to the IRS. If it wasn't reported to the IRS, you technically don't need to do the offsetting entry on your return since there's no mismatch for them to catch. However, I'd still recommend keeping detailed records of the insurance claim and payment documentation in case you ever get audited. That said, if you're unsure whether it was reported or want to be extra cautious, following the advice about reporting it as Other Income with an offsetting adjustment is still the safest approach. Better to over-document than under-document with the IRS.

This is such a common issue now with the changing 1099-K thresholds! I went through something similar with a Venmo payment from my brother for splitting our mom's medical bills. Even though it was just reimbursement, I got a 1099-K and panicked. Here's what I learned from my tax preparer: definitely don't ignore it even if you think it shouldn't have been reported. The IRS computers automatically match 1099s to returns, so if there's a mismatch, you'll likely get a notice later asking about the "missing" income. The Schedule 1 approach others mentioned is exactly right - report it as Other Income and then offset it with a negative adjustment. Make sure your description is clear, something like "Insurance reimbursement for vehicle damage - not taxable income per IRC Section 104." Keep all your insurance paperwork because if you ever get questioned, you'll need to prove it was genuinely a reimbursement and not income. One tip: if you're using tax software, some programs have a specific section for "income to report but exclude" or similar language that handles this automatically. Worth checking if your software has that feature before manually doing the Schedule 1 entries.

Has anyone else had issues with Vanguard's online system showing incorrect information about tax forms? I withdrew from my 401k last year too (different reason) and initially got the same message about no forms being available. When I called, they said the form was actually generated but just not showing online for some reason.

I went through something very similar with my Vanguard 401k hardship withdrawal last year. The key thing to understand is that their online portal can be unreliable for displaying certain types of distributions, especially hardship withdrawals. When I called Vanguard directly, I learned that hardship withdrawals sometimes get flagged for manual processing to ensure the proper exception codes are applied. In your case, since you used it for a first-time home purchase, they need to verify this qualifies for the penalty exception on the first $10,000. Here's what I'd recommend: Call Vanguard's retirement services line and specifically ask about "hardship distribution tax reporting" rather than just asking about a 1099-R. Have your withdrawal date, amount, and reason ready. They should be able to tell you the status of your form generation and can often expedite it if there's been a delay. Also, keep in mind that even though you'll avoid the 10% penalty on the first $10,000, you'll still owe regular income tax on the full $28,000. The withholding they took might not cover your entire tax liability, so be prepared for that when you file.

Worked at H&R Block for 7 years. One trick I've seen people use is to look at Schedule A (Itemized Deductions) instructions. It specifically mentions that you can deduct contributions to "A religious organization (church, synagogue, etc.)" without saying they have to be US-based. Some people deduct tithes to foreign religious organizations based on this language. Not sure if that helps with ICRC but thought I'd mention it.

I can add some clarity here from a tax preparer's perspective. The ICRC is actually one of the few foreign organizations that IS deductible for US taxpayers, but the confusion comes from their unique status. They're what's called a "Friends of" organization - they have legitimate US operations through the ICRC Washington Delegation office, which allows them to qualify for deductible donations despite being headquartered in Switzerland. This is different from most foreign charities that don't qualify. The key is that your donation needs to go to their US operations (which it does when you donate through their main website). The outdated 2014 information you found was from before they established their current US status. For future reference, Publication 526 has the official rules, but honestly for international donations, it's worth getting confirmation directly from the organization or the IRS rather than trying to interpret the complex rules yourself. The $350 donation to ICRC should be deductible on your Schedule A.