Have you tried filing by mail instead of electronically? I had a similar issue with my father-in-law's final return. Every electronic submission was rejected, but when we printed everything out and mailed it in with a copy of the death certificate attached, it was processed without issue. Also, when you mail it, write "DECEASED" in red ink at the top of the return and include a cover letter briefly explaining the situation. In my experience, having physical documents in front of an actual human IRS employee helped get past the automatic rejection systems.

Just wanted to add that you should call the IRS Practitioner Priority Service line instead of the regular taxpayer line. The number is 866-860-4259. Tax professionals use this line, but as the executor of an estate, you can use it too. The wait times are usually shorter and the agents tend to be more experienced. Make sure you have all your documentation ready when you call - death certificate, letters testamentary, any rejection notices you've received, etc. They can often override the system rejections when they understand the full situation.

This whole situation is so messed up. We're in the middle of a pandemic, people are struggling, and the government can't even get their act together to help us. It's disgraceful 😤

I completely understand your frustration! I went through the exact same thing a few months ago. Here are a few additional tips that helped me: 1. Try calling different regional offices - sometimes one office is less busy than others 2. Keep a log of when you call and what happens - it helps track patterns 3. If you do get through, ask for a direct callback number for follow-ups 4. Document everything in writing (emails, letters) as backup Also, don't feel bad about exploring that paid service @Liam mentioned if you're really stuck. Sometimes $20 is worth your sanity and time. The system shouldn't be this broken, but we have to work with what we've got. Hang in there - you'll get through this! 💪

Hey, just a quick question - does it matter that these are betting platforms? I thought gambling winnings had different rules or special forms or something?

This is a pretty common situation with online gambling and PayPal 1099-Ks. The key thing to understand is that the 1099-K just shows your gross payment transactions through PayPal - it doesn't distinguish between deposits you made to gambling sites versus actual winnings you withdrew. Since you're a dependent but received a 1099-K, you do need to file your own return. The good news is that if you truly had a net loss of $2,500, you shouldn't owe any taxes on the gambling activity itself. However, you'll need to report it properly to match what the IRS has on file. I'd recommend using tax software that can handle gambling income (TurboTax Deluxe should work). You'll report your actual gambling winnings as "Other Income" and then you can deduct your losses up to the amount of winnings on Schedule A if you itemize. Since you had a net loss, your gambling income would essentially be zero for tax purposes. Make sure you keep detailed records of all your deposits and withdrawals from these platforms - screenshots, bank statements, anything that shows the money flow. The IRS may want to see documentation if they have questions about how a $14,000 1099-K resulted in zero taxable gambling income.

Has anyone run into issues with their tax software not allowing you to leave the 199A fields blank? I'm using ProSystems and it keeps giving me a diagnostic error when I try to leave those fields empty, even though all my partners are C-Corps.

Great discussion everyone! As someone new to partnership taxation, I really appreciate seeing the consensus here. It's reassuring to know that leaving the 199A section blank (or entering zeros) for C-Corp partners is not only acceptable but actually the correct approach. I'm curious though - for those of you who have been doing this for years, have you ever had a client question why their K-1 doesn't have the 199A information? I imagine most C-Corp clients wouldn't even notice, but I'm wondering if anyone has had to explain this to a client who was expecting to see that section completed. Also, does anyone know if there are any proposed changes to the 199A reporting requirements that might affect this in future tax years?

One thing nobody's mentioning - many banks won't let you open a business account for an out-of-state LLC without proof of foreign qualification in your home state. I tried to do exactly what ur suggesting last year & Bank of America, Chase & even my local credit union all asked for my Statement of Foreign Qualification when I tried opening the account. Had to go back & register in my home state anyway lol

I went through this exact same dilemma when I started my consulting business last year. After doing extensive research and talking to a business attorney, I can tell you that trying to "fly under the radar" with an out-of-state LLC is definitely not worth the risk. Here's what I learned: California has some of the most aggressive enforcement when it comes to tracking down businesses operating within their borders. They have automated systems that cross-reference federal tax filings with state business registrations, and they actively pursue businesses trying to avoid registration requirements. The penalties can be severe - not just back fees, but also interest, penalties, and potential loss of your liability protection. Even worse, if you're ever involved in a legal dispute, opposing counsel could argue that your LLC isn't properly registered and therefore your personal assets aren't protected. I ended up registering in my home state and it wasn't nearly as complicated or expensive as I initially thought. The peace of mind knowing everything is above board is worth the extra cost. Don't risk your business and personal assets to save a few hundred dollars in fees.