One thing nobody's mentioned yet - if you do qualify for trader tax status, consider making the mark-to-market election on your taxes. This lets you deduct net losses against ordinary income without the $3,000 capital loss limitation. But be careful! The mark-to-market election is irrevocable without IRS permission. And you have to make it by the tax filing deadline of the previous year (so for 2025, you'd need to elect by April 15, 2025). Many crypto traders miss this deadline and lose the opportunity. Also worth noting: wash sale rules don't apply with mark-to-market, which is huge for crypto traders who frequently trade the same coins.

I tried claiming trader tax status for my crypto trading in 2023 (was doing 50+ trades daily) and got audited. The IRS initially rejected my TTS claim, but I appealed with documentation showing: 1. My trading schedule (8+ hours daily) 2. Analysis software I purchased 3. Separate business accounts for trading 4. Trading journal with strategies They eventually accepted my TTS claim! Key points from my experience: - Documentation is EVERYTHING - They scrutinized my holding periods (anything held >30 days counted against me) - Having a formal business structure helped (I had an LLC) - They wanted to see I was trying to profit from short-term market movements, not just buying dips Hope this helps someone! The tax savings were substantial, but be prepared to defend your position.

I successfully tracked my paper return by using a combination of methods. After mailing my return on February 20th, I: 1. Verified delivery with certified mail tracking 2. Created an online account at IRS.gov to access my transcripts 3. Checked transcripts weekly rather than relying on WMR 4. Called the IRS at the 8-week mark (used option 2, then 1, then 3 in their phone menu) The agent confirmed receipt but said it was in the processing queue. Two weeks later, my transcript updated with a direct deposit date, and the money arrived exactly as scheduled. Total time: 10 weeks and 3 days from mailing to refund. Patience is definitely required with paper returns!

I'm in almost the exact same situation! Paper filed on March 3rd and still waiting. The uncertainty is the worst part - I keep checking WMR obsessively even though I know it won't update for weeks. Based on what everyone's sharing here, it sounds like 8-12 weeks is realistic for paper returns right now. I'm trying to plan around that timeline for my own financial obligations. One thing I learned from this thread is definitely checking transcripts instead of just relying on WMR. Going to set up my ID.me account this weekend so I can monitor things more effectively. Thanks for starting this discussion - it's reassuring to know we're all in the same boat!

Has anyone else noticed a huge increase in these fake tax documents this year? I've seen like 5 posts about this in various groups I'm in. Seems like there was a data breach somewhere feeding all this identity theft.

This is really concerning, and you're right to be worried about identity theft. A few things to check immediately: 1. Verify the EIN (Employer Identification Number) on the form by searching the IRS EIN database or calling them directly 2. Check if "Meridian Benefits Solutions" is a real company through independent research (not contact info on the form itself) 3. Look at the technical details - legitimate 1099-Rs have specific formatting, fonts, and security features that fakes often miss Since you mentioned working three jobs, double-check if any of them had retirement benefits that might have been automatically cashed out when you left. Sometimes small 401(k) balances get distributed automatically. If it's definitely fake, file Form 14039 (Identity Theft Affidavit) with the IRS and report it to the FTC at IdentityTheft.gov. Also consider freezing your credit reports with all three bureaus as a precaution. Don't ignore this on your tax return - the IRS will have received a copy and will expect it to be addressed. If fraudulent, you'll need to attach documentation explaining why you're not reporting the income. Better to be proactive than wait for an IRS notice about the discrepancy.

Just a warning from personal experience - make sure your dad doesn't give any individual gifts over the annual exclusion amount without filing the proper form (Form 709). My parent did this thinking "the IRS won't notice" and it caused a HUGE headache years later during estate settlement. The IRS absolutely does track these things and the penalties add up fast. The annual exclusion is per recipient, so he can give each family member the max amount ($17,000 for 2024), but anything over that needs proper reporting even if no tax is owed.

One thing to keep in mind is timing - if your dad is planning to give gifts in the next couple months, make sure he completes all transfers before December 31st if he wants to use the 2025 annual exclusion amounts. The annual exclusion is based on the calendar year when the gift is completed, not when it's promised or planned. Also, since he mentioned this is part of his estate planning strategy, encourage him to keep detailed records of all gifts even though no forms are required for amounts under the annual exclusion. This includes dates, amounts, recipients, and method of transfer (check numbers, wire transfer confirmations, etc.). These records will be invaluable for his estate planning and could save your family headaches down the road if the IRS ever has questions. If he's consistently doing annual gifts as part of a larger estate plan, it might also be worth having him document his gifting strategy in writing so there's a clear paper trail of his intent. This can help demonstrate to the IRS that the gifts are legitimate and part of a thoughtful estate planning approach rather than any attempt at tax evasion.

Here's exactly what happens with hardship requests and how to interpret your transcript: 1. When a hardship (Form 911) is approved, the IRS flags your account with a Hardship CNC (Currently Not Collectible) status 2. This prevents automatic offsets that would normally appear as TC 898 codes 3. Your transcript will NOT show a specific "hardship approved" code - the absence of offset codes is your indicator 4. The system processes your refund normally, shown by TC 846 when issued 5. Hardship status typically lasts 6-24 months depending on your financial situation 6. The underlying debt remains but collection is paused Based on your description, your hardship was likely approved, which is why no offset codes appear.

Your situation sounds very promising! The absence of offset codes like TC 898 or TC 826 on your updated transcript is actually a really good sign, especially since you mentioned filing a hardship form. The IRS is pretty consistent about showing these codes when they plan to take your refund - if they're not there by now, they're likely not coming. I went through a similar scare two years ago and kept obsessively checking my transcript daily, but no codes ever appeared and I got my full refund. The hardship process really does work when you have legitimate financial difficulties. Keep monitoring your transcript and Where's My Refund, but honestly, I think you're in the clear!