Don't forget about the Form W-9! Requiring a completed W-9 adds an extra layer of verification. If someone provides false information on a W-9, they're committing perjury under federal law, which creates a strong disincentive for scammers.

One approach that's worked well for our platform is implementing a tiered verification system. For lower-risk transactions (under $500), we rely on document verification plus state business registry checks. For higher amounts, we add banking verification and sometimes require a video call with the business owner. We use a combination of automated document analysis (similar to what others mentioned with AI tools) and manual spot-checks. The key is having clear escalation procedures - if anything looks suspicious during automated screening, it gets flagged for human review. Also worth considering: many fraudsters will abandon applications if the verification process seems thorough, even if they could potentially pass each individual check. Sometimes the perception of rigorous verification is as valuable as the actual verification itself. For the volume you're dealing with, I'd recommend starting with document + state registry verification, then adding layers based on transaction risk levels rather than trying to verify everything to the same standard.

One thing nobody's mentioned - you might want to get a professional appraisal retroactive to the date of death. This establishes the stepped-up basis and gives you solid documentation if the IRS ever questions the values. They usually cost around $400-500 but can save thousands in potential taxes or penalties.

I'm so sorry for your loss, and I completely understand feeling overwhelmed - handling a deceased person's taxes is incredibly stressful, especially when you're doing it as a volunteer. Since you found last year's depreciation schedule, that's actually your golden ticket! Look for these key numbers on that document: the original cost basis (what she paid in 1989), accumulated depreciation through last year, and the annual depreciation amount. These should all be listed on Schedule E or Form 4562 from her prior return. For the missing pieces like land value, you can often use a rule of thumb that land typically represents 20-30% of the total purchase price for residential properties, though this varies by location. The county assessor's office can also provide the land-to-improvement ratio they use for tax purposes. One important thing - since this is a final return for someone who passed away, you'll need to calculate depreciation only up to the date of death, not for the full year. After death, the property gets a stepped-up basis to fair market value, which eliminates future depreciation but may trigger depreciation recapture that needs to be reported on the final return. Don't hesitate to call the IRS taxpayer assistance line if you get stuck - they're usually helpful with estate-related questions, though you may need patience with hold times. You're doing a wonderful thing helping with her final affairs.

FYI - sometimes "SR" can mean "Supplemental Rate" too. When I worked at my last job, I had regular medical coverage plus a supplemental critical illness policy, and it showed up exactly like this. "Medical EE" was the base plan and "SR" was the add-on. Worth checking if you have multiple types of coverage.

This thread has been super helpful! I work in benefits administration and can confirm that payroll codes are unfortunately not standardized across companies. "Medical EE - SR" could mean several different things depending on your employer's system: - Employee - Standard Rate (most common) - Employee - Senior Rate (age-based pricing) - Employee - Spouse Rate (family coverage) - Employee - Supplemental Rate (additional coverage) The best approach is definitely to check with your HR department first, as they'll have the specific definitions for your company's codes. If you can't get clear answers there, your insurance card usually has a member services number that can help explain what coverage you're actually paying for. One tip: if you're budgeting, remember that most medical insurance premiums are deducted pre-tax, which reduces your taxable income. So while you see the deduction on your gross pay, it's actually saving you money on taxes compared to paying the same amount out-of-pocket after taxes.

This is such a frustrating situation, and I really feel for you! I've seen this happen more often lately - some clients seem to think they can just redact their tax ID and avoid their obligations. One thing that might help is sending your client a formal written request (email is fine) explaining that providing their EIN/SSN on the 1099 is a legal requirement under IRS regulations, not a courtesy. Sometimes putting it in writing makes them realize this isn't negotiable. You could mention that failure to provide complete tax information can result in penalties for them. If they still refuse, definitely go with Form 4852 as others have suggested. Make sure to keep documentation of all your attempts to get the proper information - screenshots of emails, notes from phone calls, etc. The IRS wants to see you made a good faith effort to obtain the correct information. Also consider whether this client is worth the headache for future work. Anyone who creates tax compliance issues for their contractors is probably going to cause other problems down the line. You deserve to work with people who handle their business responsibilities properly.

I'm actually dealing with something very similar right now with a client who's being super sketchy about providing their EIN. It's so frustrating because you're just trying to follow the law and file your taxes correctly! One approach I haven't seen mentioned yet is reaching out to your state's Department of Revenue or Business Registration office. If you have the company name and address, sometimes you can look up their business registration and get their EIN that way. Not all states make this information publicly available, but it's worth checking. Also, if this client has a business license or is registered as an LLC/corporation, that information might be searchable in public business databases. I've had some luck finding EINs this way when clients were being uncooperative. The Form 4852 route definitely seems like the safest backup plan though. Better to document everything properly than risk issues with the IRS later. And honestly, any client who creates this kind of tax headache probably isn't worth keeping for future projects.

I actually had this exact issue with a /ES futures spread last year. The trick is to reverse how you think about the short position. For Form 6781: 1. For the short position: Put the amount you RECEIVED when opening the position as the PROCEEDS, and the amount you PAID to close it as the COST. 2. For the long position: Put the amount you PAID when opening as the COST, and the amount you RECEIVED when closing as the PROCEEDS. This way both will calculate correctly - the long showing a gain and the short showing a loss.

I ran into this exact same issue with SPX spreads last year and it was incredibly frustrating until I figured out the correct approach. The key insight that finally made it click for me was understanding that for short positions on Form 6781, you're essentially reporting a "reverse transaction" - what you received becomes proceeds, what you paid becomes cost. For your specific situation with the SPX put spread: - Short 4950 put: Proceeds = amount you received when opening the short position, Cost = amount you paid to close it (resulting in your $320 loss) - Long 4850 put: Cost = amount you paid when opening, Proceeds = amount you received when closing (resulting in your $215 gain) The mark-to-market rule is crucial here. Since you held these past December 31st, you need to report the "deemed sale" at fair market value on Dec 31 for this tax year's return. Then when you file next year, you'll report the actual closing transactions using the Dec 31 values as your new basis. Most tax software struggles with this, but the underlying tax treatment is straightforward once you understand the mechanics. The 60/40 split applies to each leg separately, so you'll get the favorable tax treatment on both the gain and loss portions.