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!

This is such a timely discussion for me! I'm dealing with a similar situation where my Canadian mother-in-law is planning her estate and we're trying to understand the implications for my spouse (U.S. citizen). One thing I haven't seen mentioned yet is the potential impact of the U.S.-Canada tax treaty. The treaty can provide some relief in certain situations, particularly regarding the treatment of retirement accounts and preventing double taxation. For example, distributions from Canadian RRSPs to U.S. beneficiaries may be eligible for reduced withholding rates under the treaty. Also, timing can be crucial - if your parents are still alive, there might be opportunities to restructure some assets or make strategic distributions that could minimize the overall tax burden when the inheritance occurs. For instance, your parents might consider making annual gifts within the U.S. gift tax exclusion limits, or converting some RRSP assets to other investment vehicles that might be more tax-efficient for cross-border inheritance. I'd definitely recommend consulting with a tax professional who specializes in U.S.-Canada cross-border taxation before your parents pass away. The proactive planning could save significant taxes down the road.

I went through this exact situation when my Canadian father passed away two years ago. A few additional points that might help: 1. **Provincial vs Federal Canadian taxes matter**: Since your parents are in Ontario, be aware that Ontario has its own probate fees and tax rules that can affect the inheritance. The provincial withholding taxes on RRSP distributions can vary significantly. 2. **Consider the timing of RRSP rollovers**: If one parent predeceases the other, RRSPs can often be rolled over tax-free to the surviving spouse's RRSP/RRIF. This could delay the tax hit until the second parent passes away, potentially giving you more time to plan. 3. **Currency exchange implications**: Don't forget about currency fluctuations between inheritance and when you actually receive/convert the funds. This can create additional gains or losses for U.S. tax purposes. 4. **Estate planning with a cross-border attorney**: I wish I had done this earlier - having both parents' wills reviewed by someone familiar with both tax systems can prevent a lot of headaches. Some structures that work great in Canada can create unnecessary U.S. tax complications. The good news is that with proper planning (which it sounds like you're doing!), most of these issues can be managed effectively. The key is getting professional advice while there's still time to make strategic decisions.