One thing to consider that I haven't seen mentioned yet - the IRS has been dealing with massive backlogs and staffing shortages since COVID. While getting your case back from CBE Group might give you access to better resolution options, it could also mean your case sits in limbo for months before anyone actually works on it. I had a similar situation with about $60k in back taxes. When I requested my case back from the collection agency, it took nearly 6 months before the IRS actually assigned someone to work on it. During that time, interest and penalties kept accruing. The upside was that once they did assign someone, I was able to get into a partial payment installment agreement that the collection agency couldn't offer. My advice would be to have a clear plan for what type of resolution you're seeking before requesting the transfer. If you just want a basic payment plan, the collection agency might actually move faster. But if you need hardship consideration, Currently Not Collectible status, or want to explore an Offer in Compromise, then definitely get it back to the IRS despite the potential delays.

I've been through this exact situation with $62k in tax debt that went to CBE Group. Here's my take after dealing with both sides: The main advantage of getting it back to the IRS is access to programs like Currently Not Collectible status if you're facing genuine financial hardship. CBE Group literally cannot put your account into CNC status - they can only offer payment plans or temporary delays. However, timing matters. If you're ready to move quickly on an Offer in Compromise or have all your financial documentation ready for a hardship determination, then request the transfer immediately. But if you're still getting your finances organized, the collection agency might actually buy you time since they tend to be less aggressive than IRS revenue officers. One tip that helped me: when you request the transfer back to the IRS, include a brief statement about what type of resolution you're seeking (installment agreement, OIC, hardship status, etc.). This can help prioritize how your case gets assigned once it's back with them. The whole process took about 8 weeks for me, but I ended up qualifying for a partial payment installment agreement that reduced my monthly payment by almost half compared to what CBE was demanding.

Does anyone know if capital loss carryovers expire? I have losses from 2008 that I've been carrying forward for years (had a really bad time in the market crash). Am I supposed to use them by a certain date?

This is exactly the kind of situation where perfect shouldn't be the enemy of good! As others have mentioned, a $50 error that doesn't change your tax liability is really minor in the grand scheme of things. I'd recommend keeping detailed records of what you discovered and when you discovered it. Write down the correct numbers and file them with your tax documents. Then when you do your 2023 return, just use the correct carryover amount (including that extra $50 loss). One thing I haven't seen mentioned yet - if you're using tax software for 2023, many programs will actually ask you to verify your capital loss carryover amount and may even flag if the number seems inconsistent with what they expect. This gives you a perfect opportunity to enter the correct amount with documentation of why it differs from your 2022 filing. The IRS really does focus on material errors that affect tax liability. A $50 capital loss correction when you were already at the $3000 limit just isn't going to be on their radar. Save yourself the headache of an amended return and handle it going forward - you'll sleep just fine!

You're absolutely right about the confusion between §6046 and §958 - I went through this exact same issue last year. The key insight that helped me was understanding that these serve completely different purposes in the Form 5471 process. §6046 attribution rules (including sibling attribution) determine WHETHER you need to file as a Category 3 filer. But once you've established that filing requirement, you switch to §958 rules for completing the actual form content. For your Line C reporting, since you only own 6% directly and your brother's 51% isn't attributed to you under §958 (no sibling attribution), you'd report just your 6% ownership. This same principle applies throughout most of the schedules. The apparent inconsistency you noticed is intentional - the IRS uses broader attribution rules to cast a wide net for filing requirements, but then uses narrower economic ownership rules for the actual reporting. It's confusing but makes sense once you understand the distinction. One thing to double-check: make sure you're not also a Category 5 filer, though with only 6% direct ownership and no §958 attribution from your brother, you should be under the 10% threshold.

This is a really helpful discussion! I've been dealing with a similar situation where I own 8% of a foreign corporation and my sister owns 45%. Reading through all these responses, I finally understand the key distinction that was confusing me too. Just to confirm my understanding: I use §6046 attribution rules to determine I'm a Category 3 filer (because my sister's ownership gets attributed to me, putting me over the threshold), but then when I actually fill out Form 5471 and its schedules, I use §958 rules which don't include sibling attribution. So on Line C, I'd only report my direct 8% ownership. One follow-up question - does this same logic apply to Schedule M (Foreign Corporation's Current and Accumulated Earnings and Profits)? I'm assuming yes, but want to make sure there aren't any special exceptions for that particular schedule that would require me to go back to §6046 attribution rules. The penalties for getting Form 5471 wrong are steep enough that I want to be absolutely certain before filing. Thanks everyone for sharing your experiences and clarifications!

Don't forget that the threshold for PayPal to issue a 1099-K changed! For 2024 taxes (filed in 2025), they're required to send 1099-K if you received more than $5,000 in payments for goods and services. It was supposed to drop to $600 but they delayed implementing that lower threshold again. So if you made less than $5k through PayPal, that explains why you didn't get a form from them.

Great advice from everyone here! I'm also doing gig work and learned this the hard way last year. One thing I'd add is to make sure you're setting aside money throughout the year for taxes since no one is withholding for you. I wish someone had told me that self-employment taxes alone would be around 15% on top of regular income tax! Also, if you think you'll owe more than $1,000 in taxes for the year, you might need to make quarterly estimated tax payments to avoid penalties. The IRS has a safe harbor rule where you pay 100% of last year's tax liability (or 90% of current year) divided into four payments. Form 1040-ES has the worksheets to calculate this. It's definitely overwhelming at first, but once you get a system down it becomes much more manageable!

As someone who's dealt with similar family gift situations, I'd echo what others have said about keeping it simple. The two-step process (mom's bank → your bank → Robinhood) is definitely the way to go. One additional thing to consider - keep a simple record of the gift for your own files. Even just a note with the date, amount, and "gift from mom for investments" can be helpful if you ever need to explain the source of funds later. The IRS rarely questions legitimate family gifts under the annual exclusion limit, but having documentation never hurts. Also, since you mentioned you're new to investing - consider starting with a diversified approach rather than picking individual stocks. Index funds or ETFs can be a great way to get broad market exposure while you're learning. Your mom's generosity is giving you a great head start!

Great question and you're smart to think about this ahead of time! I'd strongly recommend against linking your mom's bank account directly to your Robinhood. Even though the gift itself is perfectly legal, this setup could create unnecessary red flags. Here's what I'd suggest instead: 1. Have your mom transfer the $5,000 to your personal bank account first 2. Then transfer from your bank to Robinhood 3. Keep a simple record noting it was a gift from your mom This creates a clear paper trail and avoids potential compliance issues. Since it's under the $19,000 annual gift exclusion, no tax forms are needed, but having documentation is always smart. Also, since you're just starting out - consider putting most of it into a broad market index fund (like VTI or SPY) rather than individual stocks. It's a great way to learn while getting diversified exposure. Your mom is giving you an awesome head start on building wealth!