EVERYONE still has to file federal taxes no matter what state you're in!!! the only question is whether you need to file STATE taxes which for nevada you don't. But feds? Yeah the IRS still wants their cut lol

Just to clarify a few things that might help - you'll definitely need to file a federal return if your income meets the filing requirements (generally $13,850+ for single filers in 2024). Living in Nevada is great because you won't need to file a Nevada state return at all. However, if you had income from your previous state before moving to Nevada, you might need to file a part-year resident return there. Also, make sure your employer updated your address with payroll - sometimes they keep withholding for your old state even after you move, which can create complications. TurboTax should handle this correctly if you enter your move date and income information accurately. It will ask about your residency status and guide you through any multi-state filing requirements. The key is being precise about when you moved and where your income was earned throughout the year.

try calling the tax advocate service. they helped me when i was stuck in limbo

I'm going through the exact same thing right now! My transcript also shows "No Return Filed" even though I definitely submitted my return weeks ago. The empty fields for AGI and taxable income are driving me crazy because I know I had income to report. From what I've been reading, this seems to be happening to a lot of people this year. The IRS is apparently way behind on processing returns. I've been checking my transcript obsessively and the "as of" date keeps updating but nothing else changes. Have you tried using the "Where's My Refund" tool on the IRS website? Mine still just says "processing" but at least it acknowledges they received my return, unlike the transcript. Hopefully we'll both see some movement soon! 🤞

Another thing to keep in mind - if the money came from certain countries, there might be extra scrutiny. My cousin got a gift from his grandfather in Iran and ended up triggering all kinds of additional reviews because of sanctions issues, even though it was a legitimate family gift. Just something to be aware of depending on which country your relative is in.

As someone who's dealt with multiple Form 3520 filings over the years, I'd strongly recommend keeping detailed records even though they're not required with the filing. Create a simple folder with: (1) bank statements showing the incoming transfer, (2) any emails or letters from your relative mentioning the gift, (3) documentation of your relationship (family tree, photos, etc.), and (4) a simple one-page summary you write explaining the circumstances. The $2,700 quote does seem excessive for a straightforward gift situation. Form 3520 for foreign gifts is actually one of the simpler international tax forms. However, given the severe penalties mentioned by others, it might be worth getting a one-time consultation with a tax professional just to review your completed form before filing - many charge $200-400 for a review rather than full preparation. One last tip: file electronically if possible. Paper forms can get lost or delayed in processing, and with the strict deadlines, you want confirmation your form was received on time.

This is such valuable information! I'm in a similar situation at 29 with a Roth 401k through my employer. Reading through this thread has been incredibly enlightening - I had no idea about the prorating rule difference between Roth 401k and Roth IRA withdrawals. One thing I'm curious about: when you do the rollover, how do you track the contribution basis vs. earnings for tax purposes? Do the financial institutions provide clear documentation, or do you need to maintain your own records? I'm worried about accidentally withdrawing earnings thinking they're contributions and getting hit with unexpected taxes and penalties. Also, for anyone considering this strategy, I'd recommend double-checking with your current 401k provider about any rollover fees or restrictions. Some plans have waiting periods or processing fees that could affect your timeline.

This thread has been incredibly helpful! As someone who's been contributing to a Roth 401k for the past 4 years without fully understanding the withdrawal differences, I feel like I finally have a clear picture. One additional consideration I wanted to mention: if you're planning to do this rollover, timing can matter for tax purposes. I learned from my financial advisor that it's often best to complete rollovers early in the tax year so you have the full year to track any subsequent withdrawals properly. Also, for anyone worried about the complexity of tracking contributions vs. earnings after a rollover - most major brokerages (Schwab, Fidelity, Vanguard) have really good online tools that clearly show your contribution basis. They make it pretty foolproof to see what you can withdraw without penalties. The peace of mind knowing I can access my contributions in a true emergency while still keeping everything growing for retirement has been worth the rollover process. Just make sure you understand all the rules before making any moves!

Something doesn't add up with your numbers. If the missed RMD was $5,695, the maximum excise tax penalty should be 50% of that, which is $2,847.50. But the IRS is asking for the full $5,695 plus penalties? Did you include the distribution on his tax return for 2022 (even though it was taken in 2023)? If not, the IRS might be considering this unreported income, which would explain why they're including the full amount as a tax increase. Also, I think you misunderstood what Form 5329 does. Lines 53-55 being zero means you calculated no penalty due (requesting a waiver). But you still have to report and pay tax on the RMD amount itself once it's distributed.

Just to add another perspective - my father missed his RMD two years ago, and we went through this same process. We had to: 1. Take the missed distribution immediately 2. File Form 5329 requesting a waiver of the 50% penalty 3. Include a letter explaining WHY it was missed (in our case, health issues) 4. File an amended return to include the missed RMD as income in the correct year The IRS initially sent a similar notice to what you received, but after we responded with a detailed explanation, they waived most of the penalties. We still had to pay the basic income tax on the distribution amount plus some interest, but they removed the failure to file/pay penalties. The key was providing a legitimate reason why it was missed and showing we corrected it immediately upon discovery.