Has anyone successfully gotten the penalty waived by filing Form 5329 with the "reasonable cause" explanation? I'm in a similar situation (inherited in 2019, didn't take RMDs for 2021-2023) and wondering if it actually works or if the IRS just denies these requests.

I'm dealing with a very similar situation right now! Inherited my grandmother's IRA in 2021 and just discovered I've been missing RMDs. Reading through everyone's experiences here has been incredibly helpful. One thing I wanted to add - when I called my IRA custodian (Fidelity), they were actually pretty helpful in calculating what my missed RMDs should have been for each year. They have worksheets and can walk you through the calculations based on your account balance and the IRS life expectancy tables. Also, something to keep in mind - if you're taking multiple years of RMDs all at once in 2024, you might want to consider spreading the withdrawals across a few months rather than taking it all in one lump sum. It won't change the tax implications, but it might help with managing the cash flow and any potential investment timing issues. The penalty waiver route seems to be working for people, especially given all the confusion around the SECURE Act changes. I'm planning to file Form 5329 for each missed year once I take my distributions.

Check if the 1099-MISC has her correct taxpayer ID/SSN at least! I once received a 1099 with the wrong SSN and it created a HUGE mess when I filed. The IRS computer systems kept flagging a "mismatch" and I got a scary letter about unreported income. Took months to straighten out.

This is definitely confusing, but you're right to want to get it sorted out! Before calling the employer, take a close look at which specific box has the amount - that'll help you ask the right questions. Also double-check that all the identifying information is correct (your wife's name, SSN, the employer's info). Sometimes these forms get generated with errors that can cause bigger headaches down the road. When you do contact them, ask specifically what type of payment this represents - was it a final paycheck adjustment, unused vacation payout, expense reimbursement, or something else? The nature of the payment determines how you'll need to report it on your tax return. Most employers' HR or payroll departments should be able to explain this pretty quickly once you have them on the phone. If you can't reach anyone at the old employer or they can't provide a clear answer, you might need to call the IRS for guidance on how to handle reporting this income properly.

Document EVERYTHING. Every call, every letter, every case number. You'll need it all later trust me

This exact thing happened to me last year! The key is getting your IP PIN from the IRS - call the Identity Protection PIN line at 800-908-4490. Once you have that, you can file your return even while the fraud investigation is ongoing. Also make sure to file a police report - some states require it for identity theft cases and it strengthens your documentation trail.

lol meanwhile im still waiting on my 2022 return... pain 🥲

Thanks for sharing this update! It's really helpful to know the timeline. I filed my Kansas return about 3 weeks ago and it's been stuck on "processing" - this gives me hope that things might be moving behind the scenes even when the website doesn't reflect it. Did you e-file or mail yours in?

Random question - does anyone know if Robinhood reports cost basis to the IRS or just the sales amount? I've heard different things and I'm not sure if the IRS will know if the numbers are wrong.

Don't stress too much about this! You're definitely not the first person to forget about small investment accounts when filing taxes. The key thing is that you're addressing it now rather than ignoring it. For the Robinhood 1099-B showing $28, that's likely the gross proceeds from sales, not necessarily your taxable gain. If you bought stocks for $30 and sold them for $28, you'd actually have a $2 loss to report, not $28 in income. Same principle applies to your Cash App bitcoin - the $4.75 is probably what you received when you sold, but your actual gain/loss depends on what you originally paid. The IRS definitely receives copies of these 1099s, so filing an amended return is the right move. Given the small amounts involved, any additional tax owed will be minimal - probably less than $10 total. The peace of mind is worth it, and if you actually had losses on these transactions, you might even get a slightly bigger refund. File Form 1040-X once your original return finishes processing. Most tax software can handle this easily for such straightforward additions.