The IRS is a mess this year. Millions of returns delayed. I gave up and hired a tax pro who submitted an inquiry for me and got movement within 2 weeks.

This is incredibly frustrating and you're definitely not alone! I filed through TurboTax in early March and had the same "still processing" message for over 3 months. What finally helped me was getting my IRS transcript - it showed I had a code 570 hold that the Where's My Refund tool never mentioned. Turns out there was an issue with my employer's W2 transmission that required manual review. Once I knew the specific problem, I was able to call the right department and get it resolved. The transcript really is your best bet for understanding what's actually happening behind that generic "processing" message. Hang in there - most of these delays do eventually get sorted out, but I know that doesn't help when you need the money now!

I've been carrying forward capital losses for years and an important tip is to KEEP DETAILED RECORDS of all your previous tax returns. The IRS randomly decided to question my loss carryforward in 2023 and I had to provide proof from returns going back to 2019. Was a total nightmare trying to find all those documents.

One thing I'd add to the excellent advice already given - make sure you understand the "wash sale" rules before filing those back returns. If you sold crypto or stocks at a loss and then bought the same or "substantially identical" securities within 30 days before or after the sale, the IRS considers it a wash sale and you can't claim the loss immediately. This is especially tricky with crypto since many people were buying/selling frequently during those volatile periods in 2021-2022. The wash sale rules can significantly reduce your claimable losses, so it's worth double-checking your transaction history before you file. Some of the tax software mentioned earlier should catch this automatically, but it's good to be aware of the rule going in.

You're absolutely doing the right thing by maintaining your boundaries. As someone who's dealt with similar accounting disasters, I can tell you that a $340k retained earnings discrepancy with phantom assets and missing liabilities is not a part-time bookkeeping project - it's a full-scale forensic accounting engagement. The fact that the previous admin was making changes to closed years is particularly alarming from a compliance perspective. This suggests potential issues with previously filed returns that could trigger audit exposure. Here's my suggested approach: Create a detailed findings memo that includes (1) specific examples of the major discrepancies you've found, (2) an honest assessment that this requires 200-300+ hours of specialized work, and (3) a strong recommendation to engage a CPA firm experienced in multi-year accounting reconstructions. Don't feel guilty about saying no. You were hired for current operations, not to fix years of accumulated errors at below-market rates while managing health challenges. Your responsibility is to identify problems and recommend appropriate solutions - which you've done. The owner needs to understand this isn't about unwillingness to help, it's about ensuring the work gets done properly by someone with the right expertise, capacity, and professional insurance to handle this level of complexity. A botched reconstruction attempt could make things worse, not better. Document everything, make your recommendations clear, and help them find qualified professionals. That's the most responsible path forward for everyone involved.

You're in an absolutely impossible situation, and I completely understand the guilt you're feeling. But you need to remember - you didn't create this mess, and you're not responsible for fixing 6 years of accumulated errors, especially given your health limitations and part-time status. A $340k retained earnings discrepancy is not a "cleanup" - it's a full forensic reconstruction project. When you have phantom assets, missing liabilities, and evidence that someone was making changes to closed years, you're looking at potential tax compliance violations that could have serious consequences. Here's what I'd do: Create a comprehensive written report documenting every major issue you've identified. Include specific examples (like that $80k double-counted expense), categorize the types of errors, and provide a realistic scope estimate. Then recommend they engage a CPA firm that specializes in business tax reconstruction - not general bookkeeping, but specifically multi-year tax compliance cleanup. Make it crystal clear that this is a separate professional engagement requiring specialized expertise, appropriate insurance coverage, and significantly more hours than your part-time schedule allows. You were hired to handle current operations, not to perform forensic accounting on years of accumulated mistakes. Your job is to identify problems and recommend solutions - which you've done perfectly. The owner's job is to invest in proper professional remediation. Don't let guilt push you into taking on work that could compromise your health or professional standing.

This is such a helpful thread! I'm actually a tax preparer and see this confusion all the time during tax season. Just wanted to reinforce what everyone has said - for 99% of people opening their first bank account, the answer to backup withholding is "No." The only time I've seen clients subject to backup withholding is when they've had serious ongoing issues with the IRS - like repeatedly providing wrong SSNs to banks or consistently failing to report investment income. The IRS doesn't just randomly put people on backup withholding. One thing I'll add that might be helpful: even if your account does earn interest (which is pretty minimal on most checking accounts these days), as long as it's under $10, the bank doesn't even have to send you a 1099-INT form. So for a new checking account holder, the backup withholding question is really just a formality. You're being smart by asking questions and taking your time with the application. That careful approach will serve you well as you navigate more financial decisions in the future!

As someone who recently went through this exact same process, I completely understand your confusion! The backup withholding question definitely sounds more intimidating than it actually is. I had the same panic moment when I saw that question on my banking forms. After doing some research and talking to the bank staff, I learned that backup withholding is essentially the IRS's way of making sure they collect taxes on interest and dividends when they think someone might not report that income properly. The good news is that if you've never received an official letter from the IRS specifically telling you that you're subject to backup withholding, then you're not. Since you're opening your first account and haven't had any previous issues with tax reporting, you should confidently answer "No" to that question. Just make sure you provide your correct Social Security Number on the application, and you'll be all set! The bank is required to ask this question for everyone, but it really only applies to people who have had ongoing problems with the IRS regarding unreported income. Congratulations on taking this important step toward financial independence - opening your first bank account is a big milestone!

Great question! Yes, when you dispose of your entire interest in a rental property, all those suspended passive losses become fully deductible in the year of sale. This is covered under IRC Section 469(g) - you can use them to offset ANY type of income, including your W2 salary. With $100K in suspended losses and a $135K salary, you're looking at potentially significant tax savings. However, a few things to watch out for: 1. **Depreciation recapture** - You'll still owe tax at 25% on depreciation you've claimed over the years, even with a sale loss 2. **Documentation** - Make sure you have proper records of these suspended losses from your Form 8582 worksheets each year 3. **Sale loss calculation** - Your actual loss on the property sale will be separate from the suspended passive losses The silver lining is that after years of carrying these losses forward, you finally get to use them all at once. Given the complexity with depreciation recapture and the large amounts involved, I'd strongly recommend getting professional help to make sure you're maximizing the benefit and reporting everything correctly. Sorry to hear about the rental nightmare, but at least the tax situation should work in your favor!

This is such a common situation with rental properties! I went through something similar with my rental condo that turned into a money pit. The good news is that when you dispose of your entire interest in the rental property, all those suspended passive losses get released and can offset your regular income - including your W2 salary. Just be prepared for the paperwork complexity. With $100K in suspended losses, you'll definitely want to have all your documentation in order. I'd recommend gathering all your Schedule E forms from the past six years and any Form 8582 worksheets that tracked these suspended losses. The IRS will want to see the trail of how these losses accumulated. One thing that caught me off guard was that even though I sold at a loss, I still had some tax liability due to depreciation recapture. It didn't eliminate all the benefits from the suspended losses, but it was something I hadn't initially factored into my calculations. Still, being able to finally use those losses after years of carrying them forward felt like getting something back from an otherwise frustrating investment experience!