17 Has anyone dealt with this situation but with a 1099-MISC instead of a 1099-S? My aunt passed and I got money from her life insurance policy, but they sent me a 1099-MISC and I'm freaking out thinking I have to pay income tax on it!

Just want to add something important that might help others - make sure you get proper documentation for the stepped-up basis at the time of death. I made the mistake of not getting a formal appraisal when my mom passed, thinking the county assessment was good enough. Three years later when I sold some inherited stock, the IRS questioned my basis calculation during an audit. Even though I was right about the values, I had to pay for a retroactive appraisal and professional help to prove it. Cost me way more than getting it done properly from the start. If you're dealing with significant inherited assets, spend the money upfront for professional appraisals at the date of death. It's worth it for the peace of mind and proper documentation.

I'm so sorry you're dealing with this - these pig-butchering scams are absolutely devastating and the financial impact is just crushing. $260k is a life-changing amount of money to lose. I went through something similar about 18 months ago (lost around $90k) and can share what I learned about the tax side. The good news is that your situation actually sounds like it has strong potential to qualify for Ponzi scheme treatment based on what you've described. The key factors that worked in my favor were: - The scammer created a fake trading platform showing fictitious gains - They used these fake "profits" to convince me to deposit more money - There was a clear pattern of deception designed to look like legitimate investment returns - I had extensive documentation of all communications and fake trading activity What really helped my case was organizing everything chronologically to show the pattern of deception. I created a timeline showing each deposit, the fake "gains" they showed me afterward, and how they used those fake profits to convince me to invest more. This clearly demonstrated the Ponzi-like structure. I ended up working with a CPA who had some experience with fraud cases (not specifically crypto, but general investment fraud). We used Form 4684 and included a detailed statement referencing Revenue Procedure 2009-20. The documentation was key - screenshots of the fake platform, all communications, transaction records, and police reports. I was able to claim about 95% of my losses as a deduction. Haven't been audited yet, but my CPA said the thorough documentation gives us a strong position if questioned. The fact that you've already filed reports with multiple agencies is great - that shows you treated this as a crime from the beginning, which supports the theft loss angle. Don't give up hope on the tax relief. With proper documentation and the right tax professional, you have a real chance at significant tax savings that could help with your recovery.

I'm really sorry you're going through this nightmare - losing $260k to one of these sophisticated scams is absolutely devastating, and I can only imagine the emotional and financial stress you're dealing with. From what I've learned after helping several clients navigate similar situations, your case actually has strong potential for Ponzi scheme classification based on the details you've shared. The fact that the scammer showed you fake "profits" and used those fictitious returns to encourage additional deposits is a classic hallmark of Ponzi scheme structure that the IRS recognizes. A few key things that will strengthen your position: 1. **Document the deception pattern** - Create a detailed timeline showing each deposit you made and the fake gains/trading activity they showed you afterward. This demonstrates the systematic deception characteristic of Ponzi schemes. 2. **Preserve all evidence** - Screenshots of the fake platform, all communications with the scammer, transaction records, and copies of all your law enforcement reports. The more comprehensive your documentation, the stronger your case. 3. **Focus on the investment illusion** - Emphasize in your documentation how the scammer created the appearance of legitimate investment returns when no actual trading was occurring. This distinguishes your case from simple theft. The Revenue Procedure 2009-20 safe harbor provision could allow you to deduct up to 95% of your losses, which on $260k would provide substantial tax relief. While there's always some audit risk with large deductions, proper documentation and adherence to IRS guidelines provides strong protection. I'd recommend finding a CPA with experience in fraud cases, even if they don't specialize in crypto specifically. The key is someone willing to work with Revenue Procedure 2009-20 and Form 4684 properly. Don't lose hope - with the right approach and documentation, you have a legitimate path to significant tax relief that could help your financial recovery.

For what it's worth, I checked with my accountant about a similar IRS TREAS 310 TAX REF deposit I received, and he explained that the IRS has been processing a backlog of corrections and adjustments from previous tax years. Many people are getting surprise refunds from tax years 2021-2023 as the IRS works through their processing delays. If you filed during the pandemic years, this could be a delayed adjustment from that period.

I work as a tax advisor and see this situation frequently with H1B holders. The IRS TREAS 310 TAX REF code specifically indicates a legitimate tax refund, so you can feel confident this isn't a mistake or something you need to worry about returning. Given your H1B status, there are a few likely explanations: 1) You may have qualified for tax treaty benefits between the US and your home country that weren't initially applied, 2) The IRS automated systems caught an error in your favor during their review process, or 3) You had excess withholding that created a larger refund than expected. To verify the exact reason, I'd recommend checking your IRS online account at irs.gov where you can see a detailed breakdown of your tax account activity. This will show you exactly which tax year and which specific adjustment generated the refund. This documentation is also helpful to keep for your records in case you ever need to reference it in the future. The money is yours to keep - just make sure to keep records of when you received it in case it affects any future tax filings.

So happy to hear you got your hardship approved! When I was going through this process, I found that the best way to actually understand what was happening with my refund was to use taxr.ai - it showed me exactly where I was in the process and when funds would be released. Helped me sleep better knowing exactly what was going on instead of guessing. Check it out if you have any more tax issues this year!

That's awesome that your tax advocate came through for you! Based on my experience, once it shows up in SBTPG with a date, you're usually looking at 2-3 business days max before it hits your account. Since your date shows 05/17/2025 (Friday), I'd expect to see it in your bank by Monday or Tuesday at the latest. Just make sure to keep an eye on your account and maybe give your bank a heads up about the incoming deposit - some banks will flag large unexpected deposits. The hardship process is such a pain but sounds like you're finally at the finish line. Hope you get your funds soon and can take care of those medical bills! 🤞

Hi Cynteria! Tax code 291 typically refers to "Additional Medicare Tax" on your tax documents. This code by itself doesn't indicate that you're receiving money - it's usually related to additional Medicare tax that may have been withheld from your wages if you earned over certain thresholds ($200,000 for single filers, $250,000 for married filing jointly). To better help you understand what this means for your specific situation, could you provide a bit more context? Are you seeing this code on your W-2, tax return, or another document? This will help clarify whether it affects your refund or tax liability.