I went through this exact same frustration last year! After trying everything suggested here (calling SSA, checking for name discrepancies, etc.), it turned out to be something completely unexpected - my spouse's SSN was flagged for "suspicious activity" in the IRS system due to a data breach at their former employer. The SSN itself was correct, the name was correct, but the IRS had temporarily flagged it pending verification. This isn't something you can fix by resubmitting - it requires direct contact with the IRS to clear the flag. What finally worked for me was calling the IRS Taxpayer Advocate Service (1-877-777-4778). They're specifically designed to help with these kinds of systemic issues that regular IRS customer service can't handle. They were able to clear the flag within a few days and my return was processed normally. Just wanted to mention this possibility since it's not commonly known but does happen, especially if your spouse has had any employment changes or lived in areas affected by major data breaches in recent years.

I had a very similar issue two years ago and it was incredibly frustrating! After going through all the usual troubleshooting (checking SSA records, verifying name formatting, etc.), I discovered that my spouse's SSN was actually correct in all systems, but there was a timing issue with when we filed. It turns out that my spouse had received a small 1099 form late in the season that we didn't include in our original filing. Even though the SSN rejection message made it seem like a Social Security number problem, the real issue was that the IRS had already received the 1099 with my spouse's SSN from the employer, but our return didn't include that income. The system flagged this as an SSN mismatch because it expected to see that 1099 income reported under my spouse's SSN. Once we amended our return to include the missing 1099, everything went through smoothly. I'd recommend double-checking that you have all tax documents for your spouse - sometimes employers send corrected or additional forms after you've already filed. Check your spouse's online accounts with any employers, banks, or investment companies to make sure no additional tax documents were issued after your filing.

Sorry if this is a dumb question, but wouldn't it just be easier to explain to the client that they issued the 1099-NEC incorrectly? Like, couldn't they void that one and issue a corrected one in 2025 when you actually do the work? I had a client issue me a 1099 for the wrong year once and they were able to fix it.

I went through something very similar when I started freelancing! The timing issue with 1099s can be really confusing. Just to add to what others have said - if you do decide to report the income in 2024 (which seems like the safest approach based on the other responses), make sure to set aside money for the taxes since you'll owe them in 2024 even though you haven't done the work yet. One thing that helped me was opening a separate business savings account to hold a portion of any advance payments specifically for tax purposes. That way when tax time comes, you're not scrambling to find the money to pay taxes on income you may have already spent on living expenses. Also, once your LLC is formed, definitely let your client know to use the EIN for any future payments. It'll make your bookkeeping much cleaner going forward. Good luck with the new business!

One thing no one's mentioned - if your spouse had other capital gains during the year, this loss could offset those gains. Worth checking your complete return to see if there were other investment transactions that might change how important this amendment is.

You should definitely file an amended return for the 1099-B showing the $600 loss. Here's why it's worth it: 1. **You'll likely get money back** - That $600 capital loss can reduce your taxable income by up to $600 (assuming you don't have other capital gains to offset), which could mean an additional refund of $60-150+ depending on your tax bracket. 2. **It's required by law** - The IRS expects you to report all 1099 forms you receive, even losses. Not reporting it could potentially cause issues if the IRS notices the discrepancy. 3. **You have plenty of time** - Since you just filed, you have 3 years to amend without any penalties. For the amendment, you'll need to file Form 1040-X and include Schedule D to report the capital loss. Most states will also require an amended state return if they have income tax. The amendment fee from TurboTax might sting a bit, but you'll likely come out ahead financially, plus you'll have peace of mind knowing everything is properly reported to the IRS.

Another option as executor: check if your uncle qualified for Currently Not Collectible (CNC) status. If he had financial hardship, the IRS might have placed his account in CNC status. This doesn't stop the 10-year clock, so the debts might have expired anyway. Also, if there were any IRS errors in assessment or collection, those could potentially invalidate the debt. It's worth having a tax professional review everything before you pay anything from the estate.

I'm dealing with a similar situation right now with my grandmother's estate. One thing I learned is that even if some debts have expired under the 10-year rule, the IRS might still send collection notices because their computer systems don't always automatically stop collection activities when the CSED passes. As executor, you have the right to challenge any collection attempts on expired debts. If you determine through the transcripts that certain tax years have passed their CSED, you can send a written response to the IRS citing the expired statute of limitations. Make sure to keep copies of everything and send any correspondence via certified mail. Also, don't feel pressured to pay anything immediately. Take time to get the transcripts and verify which debts are still valid. The estate administration process gives you some breathing room to sort this out properly before making any distributions to beneficiaries.

I just went through this nightmare last month! My advice: don't try to do this yourself. After messing around with transcripts and getting nowhere, I finally broke down and paid a tax professional $225 to handle everything. They got my records from the IRS, filed all my back taxes, and even negotiated a payment plan. Worth every penny to not deal with the stress.

Marcus, I completely understand the stress you're going through - I was in almost the exact same situation last year! The good news is you have several solid options to get your W2 information. First, definitely start with requesting a Wage and Income Transcript from the IRS like Lily mentioned. You can get this online at irs.gov/transcripts by creating an account, or mail Form 4506-T. This will have all the key information from your W2s that employers reported to the IRS. One thing to keep in mind since you mentioned you were getting tips - make sure you have records of your tip income if you reported it throughout the year. The transcript will show what your employer reported, but if you had additional unreported tips, you'll need to include those as well. Also, don't panic about the IRS letters. Yes, penalties and interest are accumulating, but the IRS is generally willing to work with people who are making a good faith effort to get compliant. Once you file, you can often get penalty abatement for reasonable cause, especially given your circumstances with the business closure and moves. The sooner you get this sorted, the better - but you're definitely not "screwed." Thousands of people deal with missing W2s every year and get it resolved. You've got this!