This is such a helpful thread! I'm dealing with a similar situation where my client filed Form 966 but now wants to continue operations. One thing I wanted to add from my experience - make sure to document the timing of when the abandonment decision was made versus when any liquidating distributions might have already occurred. If partial distributions were made after the Form 966 filing but before the abandonment, those might need special treatment. The IRS could view those as liquidating distributions even if the overall plan is later abandoned. I learned this the hard way when a client had already distributed some assets to shareholders before changing their mind. Also, keep detailed records of the corporate decision-making process. The IRS may want to see evidence that the abandonment was a legitimate business decision and not just tax avoidance. Board minutes, shareholder resolutions, and documentation of the changed business circumstances can all be important if you're ever questioned about the abandonment. The guidance about sending a statement to the IRS service center is spot on - just make sure it's comprehensive and references all the relevant dates and corporate actions.

Great thread everyone! I'm a tax advisor who's handled several Form 966 reversals, and I wanted to add a few practical points that might help others in similar situations. First, timing is crucial when documenting the abandonment. The IRS generally wants to see that the decision to abandon was made for legitimate business reasons, not just to avoid tax consequences. Make sure your corporate minutes clearly state the business justification for continuing operations. Second, if you're in a state that requires annual franchise tax filings, check whether your Form 966 filing affected your state tax status. Some states automatically change your filing requirements once they're notified of dissolution plans, so you may need to update your state tax registration as well. Finally, consider the impact on any tax elections that might have been made in conjunction with the liquidation plan. For example, if you made a Section 338 election or any other special elections related to the liquidation, you'll need to evaluate whether those need to be addressed separately. The advice about sending a signed statement to the IRS service center is absolutely correct - just make sure it includes the EIN, original Form 966 filing date, and a clear statement that the plan has been formally abandoned by appropriate corporate action with the date of that action.

I'm dealing with a very similar situation right now! Inherited my grandmother's IRA in 2021 and just discovered I've been missing RMDs. Reading through everyone's experiences here has been incredibly helpful. One thing I wanted to add - when I called my IRA custodian (Fidelity), they were actually pretty helpful in calculating what my missed RMDs should have been for each year. They have worksheets and can walk you through the calculations based on your account balance and the IRS life expectancy tables. Also, something to keep in mind - if you're taking multiple years of RMDs all at once in 2024, you might want to consider spreading the withdrawals across a few months rather than taking it all in one lump sum. It won't change the tax implications, but it might help with managing the cash flow and any potential investment timing issues. The penalty waiver route seems to be working for people, especially given all the confusion around the SECURE Act changes. I'm planning to file Form 5329 for each missed year once I take my distributions.

One thing I'd add to all the great advice here is to be careful about the timing of when you take these missed distributions. Since you're taking multiple years' worth of RMDs all at once in 2024, this could potentially push you into a higher tax bracket for the year. You might want to consider doing some basic tax planning first - maybe run the numbers to see if it makes sense to take some distributions in December 2024 and the rest in January 2025 to spread the tax impact across two years. Obviously you want to get compliant as soon as possible, but a few weeks of timing difference could potentially save you significant money if it keeps you out of a higher bracket. Also, don't forget that you can have taxes withheld directly from the IRA distributions to help cover the tax bill. Most custodians can set this up easily when you request the withdrawals. Given that you'll likely owe more taxes than usual this year, having some withheld upfront can help avoid an underpayment penalty. The penalty waiver approach definitely seems to be the way to go based on what others have shared. The IRS has been pretty reasonable about these inherited IRA situations given all the rule changes.

Check if the 1099-MISC has her correct taxpayer ID/SSN at least! I once received a 1099 with the wrong SSN and it created a HUGE mess when I filed. The IRS computer systems kept flagging a "mismatch" and I got a scary letter about unreported income. Took months to straighten out.

This is definitely confusing, but you're right to want to get it sorted out! Before calling the employer, take a close look at which specific box has the amount - that'll help you ask the right questions. Also double-check that all the identifying information is correct (your wife's name, SSN, the employer's info). Sometimes these forms get generated with errors that can cause bigger headaches down the road. When you do contact them, ask specifically what type of payment this represents - was it a final paycheck adjustment, unused vacation payout, expense reimbursement, or something else? The nature of the payment determines how you'll need to report it on your tax return. Most employers' HR or payroll departments should be able to explain this pretty quickly once you have them on the phone. If you can't reach anyone at the old employer or they can't provide a clear answer, you might need to call the IRS for guidance on how to handle reporting this income properly.

@Freya Andersen - I completely understand your stress! I'm also new to this community and just went through this exact same panic when I switched to a professional preparer for the first time this year. The Form 8879 was totally foreign to me too, and I spent sleepless nights wondering if I had missed some crucial step. Here's what I learned that really helped calm my nerves: The Form 8879 is essentially your digital signature that authorizes your tax preparer to electronically file your return on your behalf. Think of it as the electronic equivalent of physically signing a paper tax return. Once you signed it and returned it to your preparer, you've completed your part of the process - the preparer handles everything else from there. Your preparer should submit your return within 1-2 business days of receiving your signed 8879, and the IRS typically responds with acceptance confirmation within 24-48 hours after that. The form itself stays with your preparer as proof they had your authorization to e-file - you don't need to mail anything yourself. I'd definitely recommend calling your preparer tomorrow morning to ask for confirmation that your return was submitted and accepted by the IRS. Most reputable preparers will be able to tell you the exact date and time of acceptance. You can also double-check using the "Where's My Refund?" tool on irs.gov with your SSN, filing status, and exact refund amount. Don't panic - by signing that 8879, you've done everything correctly! The fact that your preparer gave you this form shows they're following proper e-filing procedures. I was anxious about this for days until I understood the process, but you're definitely on track for meeting the deadline. This community has been so helpful in explaining everything - you're not alone in this stress!

@Freya Andersen - I completely understand your panic! I'm also new to this community and just went through this exact same anxiety when I used a professional tax preparer for the first time earlier this month. That Form 8879 had me completely stressed out too because I'd never encountered it before. Here's what I learned that really put my mind at ease: The Form 8879 is basically your electronic signature that gives your tax preparer legal permission to file your return digitally with the IRS. It's the e-filing equivalent of physically signing a paper tax return. Once you signed it and gave it back to your preparer, you've essentially "signed" your tax return and completed your part of the process. Most preparers will submit your return within 1-2 business days of receiving your signed 8879, and the IRS usually sends back acceptance confirmation within 24-48 hours. The form itself doesn't get mailed to the IRS - your preparer keeps it in their records as proof they had authorization to e-file on your behalf. I'd strongly recommend calling your preparer first thing tomorrow morning to ask for confirmation that your return was submitted and accepted. Any good preparer should be able to give you the exact date and time the IRS accepted your return. You can also verify independently using the "Where's My Refund?" tool on irs.gov - just have your SSN, filing status, and exact refund amount ready. Don't stress too much - by signing that 8879, you've done everything right! The fact that your preparer used this form shows they're following proper procedures. I was losing sleep over this same issue until I understood the process, but everything worked out perfectly. You're definitely on track for the deadline!

Document EVERYTHING. Every call, every letter, every case number. You'll need it all later trust me

This exact thing happened to me last year! The key is getting your IP PIN from the IRS - call the Identity Protection PIN line at 800-908-4490. Once you have that, you can file your return even while the fraud investigation is ongoing. Also make sure to file a police report - some states require it for identity theft cases and it strengthens your documentation trail.