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.

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?

pro tip: sign up for informed delivery on usps website. at least youll know when its coming

Same situation here - mailed 1/30 and still nothing. Called the IRS yesterday and they said to wait the full 4 weeks before requesting a trace. Super frustrating but apparently this is pretty normal right now. The rep mentioned they're seeing a lot of mail delays due to increased volume and some postal processing issues. Hang tight!

Has anyone considered the insurance implications here? When I started renting part of my house to a business (even one I partially owned), my homeowners insurance freaked out. They said I needed a different policy that included business use. Ended up costing me about $350 more per year. Make sure you check with your insurance company before you start, or they might deny claims if something happens!

One thing I haven't seen mentioned yet is the importance of keeping detailed records of how you calculate your business use percentage. I went through an audit last year for a similar situation (renting my home office to my consulting business), and the IRS agent was very thorough about my square footage calculations and usage logs. I'd recommend taking photos of the spaces being rented, measuring everything precisely, and keeping a simple log of when the business actually uses common areas like bathrooms or hallways. The agent told me that consistency in your calculation method year-over-year is crucial - if you change how you calculate the percentage without a good reason, it can trigger additional scrutiny. Also, be prepared that if you claim depreciation on the business portion of your home, you'll have to "recapture" that depreciation when you eventually sell the house, which means paying tax on it at ordinary income rates rather than capital gains rates. Sometimes it's worth skipping the depreciation deduction to avoid this complication down the road.

For UK sellers specifically, you'll want to report this income on your Self Assessment tax return if you're self-employed or have other income that requires filing. The income from your Zazzle sales should be reported as business income or miscellaneous income depending on how you classify your selling activity. Since you received the 1042-S with exemption code 15, no US tax was withheld, so you'll pay UK tax on the full amount according to your UK tax bracket. Make sure to convert the USD amounts to GBP using HMRC's published exchange rates for the tax year. Keep the 1042-S form with your records - you don't need to send it to HMRC, but it's proof of your foreign income if they ever ask. Also worth noting that if your total Zazzle income for the tax year exceeds £1,000, you'll need to register for self-employment with HMRC if you haven't already.

Just wanted to share my experience as another UK-based seller on Zazzle. I received my first 1042-S last month and was equally confused! After reading through all these comments and doing some research, here's what I learned: The exemption code 15 is specifically for UK residents under the US-UK tax treaty - it means Zazzle recognized you as a UK tax resident and didn't withhold any US taxes. This is exactly what should happen when you properly complete the W-8BEN form. For UK tax purposes, I reported my Zazzle income as "other income" on my Self Assessment. Since I'm under the £1,000 trading allowance threshold, I claimed the full allowance rather than deducting actual expenses (which were minimal anyway - just some design software subscriptions). One tip: HMRC's exchange rates can be quite different from what you might see on Google or bank statements, so make sure to use their official monthly rates. I found them on the gov.uk website under "HMRC exchange rates for customs and VAT." The whole process was much less scary than I initially thought! Keep that 1042-S safe with your other tax documents - you'll likely get one each year you have Zazzle earnings.