This is exactly the kind of situation that highlights why it's so important to stay on top of your tax professional's work. I'm really sorry your accountant dropped the ball for multiple years - that's completely unacceptable. From everything I'm seeing in this thread, you definitely have options to claim these losses. The abandonment loss approach seems like your best bet since there's clearly no functioning entity left to produce K-1s. A few additional thoughts based on what others have shared: - Don't wait any longer to address this. Every year you delay is potentially another year of tax benefits you're missing out on. - Document everything thoroughly, including your attempts to contact the defunct LLC. This paper trail will be crucial if the IRS has questions. - The 7-year rule for worthless securities that someone mentioned could be huge for you since it's been 5 years. Definitely worth exploring whether your LLC investment qualifies. - Consider getting a second opinion from multiple tax professionals before deciding on your approach. This is complex enough that you want someone who's handled similar cases. The silver lining is that other investors have successfully claimed these types of losses, so there's definitely precedent. You just need the right expertise to navigate the process correctly. Best of luck getting this resolved!

I've been following this thread with great interest since I'm dealing with a very similar situation. My LLC investment also completely imploded about 4 years ago, and I've been getting nowhere with my current accountant on claiming the losses. What's really helpful here is seeing how many different approaches people have successfully used - from abandonment loss treatment to Form 8082 filings to working with specialized services. It gives me confidence that there are legitimate ways to handle this mess even without K-1s. A couple of questions for the group: Has anyone dealt with a situation where you're not even sure if the LLC was ever properly dissolved? In my case, the managing partners just disappeared and I have no idea if anyone ever filed dissolution paperwork. Does that affect how you claim the abandonment loss? Also, for those who used amended returns going back multiple years - did you file them all at once or spread them out? I'm worried about triggering audit flags by suddenly filing 3-4 amended returns simultaneously. Thanks to everyone who's shared their experiences. This thread is a goldmine of practical advice that you just can't find anywhere else.

Quick question - does this extension situation affect how I should handle this? I also have a duplicate 1099-NEC on my transcript and filed an extension. Is there any special consideration or form I need to file because I'm past the normal deadline?

I went through this exact same situation two years ago with a duplicate 1099-NEC from a consulting client. The key thing that helped me was creating a simple spreadsheet that matched my bank deposits to each 1099-NEC I received. This made it crystal clear which ones were legitimate and which was the duplicate. When I filed, I reported only the actual income received and included a brief statement on my Schedule C explaining the discrepancy. I also kept screenshots of my income transcript showing the duplicate, along with my bank statements proving I only received one payment. The IRS never contacted me about it, but having all that documentation organized gave me peace of mind. Don't overthink it - just report what you actually earned and keep good records showing why there's a difference between your transcript and your return.

I've been through this exact scenario before, and I totally get the anxiety! One additional tip that saved me: if you have online banking, set up account alerts for both deposits and withdrawals on your phone. That way you'll get real-time notifications when each transaction hits your account. I learned the hard way that even when banks process deposits before withdrawals, there can sometimes be a delay between when the deposit shows as "pending" versus "available." The IRS withdrawal might process against your available balance, not your pending balance. So when you call your bank tomorrow, specifically ask them to ensure your direct deposit is marked as "available" funds before any withdrawals are processed. Also, if you're still feeling stressed about it after talking to your bank, consider keeping a small buffer in your checking account for situations like this in the future. Even just $100-200 can save you from overdraft stress and give you peace of mind for automatic payments. You've got this - being proactive like you are is exactly the right approach!

I went through this exact same situation about 6 months ago and can definitely relate to the stress! Here's what I learned from my experience: The IRS typically processes payments between 2-6 AM Eastern, but the good news is that most banks have a processing order that works in your favor. They usually run incoming ACH deposits (your paycheck) before outgoing ACH debits (IRS payments) during their overnight batch processing. That said, here's what I'd do in your situation: 1. Call your bank first thing tomorrow morning and explain you have a government payment scheduled the same day as your direct deposit. Ask them to put a note on your account to ensure your deposit processes and is available before any withdrawals. Most banks will accommodate this request. 2. Set up account alerts on your phone so you get real-time notifications when transactions hit your account. 3. If you're still worried, you can call the IRS at 1-888-353-4537 to reschedule the payment (needs to be done at least 2 business days in advance). 4. Keep your bank's customer service number handy on payment day - if you see any issues developing, call immediately as they can sometimes hold transactions for a few hours. Don't stress too much - this timing conflict happens more often than you'd think, and banks have procedures to handle it. The fact that you're being proactive puts you in a much better position than most people who just hope for the best!

This is such a stressful situation, but you're definitely taking the right steps by reaching out for help! I went through something very similar last year when I received a W2 from a company I'd never even heard of. The advice in this thread is really comprehensive and spot-on. I'd especially emphasize filing Form 14039 immediately - don't wait to gather more information or contact the company first. The IRS needs to know about this right away to protect your account. One thing I learned the hard way: make sure to request your complete wage and income transcript from the IRS online account before you file your legitimate tax return. In my case, there were actually TWO fraudulent W2s I didn't know about yet. It's better to have the full picture upfront rather than discovering more issues later. Also, when you do eventually contact the company that issued the fake W2 (after you've filed with the IRS), ask them specifically about any data breaches they've experienced in the past year. Sometimes these fraud rings get employee information from hacked payroll systems, and knowing how your info was compromised can help you protect against future incidents. The whole process took about 4 months to fully resolve for me, but I had peace of mind much sooner once the IRS flagged my account and issued me an IP PIN. That PIN has been a game-changer for security - definitely worth the minor extra step each tax season. You've got this! It feels overwhelming now, but the IRS has really good procedures in place for identity theft victims.

This sounds absolutely terrifying, but everyone here has given such solid advice! As someone who works in cybersecurity, I see identity theft cases regularly and want to emphasize a few additional protective steps: **Beyond the IRS actions everyone mentioned:** - Change your passwords on ALL financial accounts immediately, especially if you reuse passwords anywhere - Enable two-factor authentication on your bank, credit card, and investment accounts - Consider placing a security freeze (not just fraud alert) on your credit reports - this completely blocks new account openings until you lift it - Monitor your existing credit cards and bank accounts daily for the next few months for any unauthorized activity **Pro tip:** Set up account alerts on all your financial accounts to notify you immediately of any transactions, login attempts, or changes. Identity thieves often test the waters with small transactions before going big. The fact that they had your correct SSN and name suggests this could be part of a larger data breach. Check haveibeenpwned.com to see if your email has been involved in any known breaches recently - this might give you clues about how your information was compromised. You're handling this exactly right by acting quickly. The IRS identity theft procedures really have improved, and with proper protection in place, you'll actually be more secure than before this happened. Stay strong - you've got this!

This is such a helpful thread! I just joined this community and I'm dealing with the exact same situation right now. My Social Security withholding suddenly dropped from around $590 per paycheck to just $138 about six weeks ago, and I had no idea what was happening. Reading through all these explanations about the Social Security wage base limit makes perfect sense now. I checked my paystub and my year-to-date Social Security wages show $167,700 exactly - so I've definitely hit that threshold. What's really valuable here is seeing how many people have gone through this same confusion. It's honestly frustrating that this isn't something employers explain proactively. You'd think when someone reaches this income level, HR would give them a heads up about how the tax system changes. I'm definitely going to implement the advice about setting aside the extra money each month. The idea of treating it like "forced savings" for when January hits and the full withholding resumes is brilliant. The last thing I want is to get comfortable with the higher take-home pay and then struggle to adjust my budget when 2026 rolls around. Thanks to everyone who shared their experiences - it's incredibly reassuring to know this is completely normal and not some payroll mistake I need to worry about!

This is such a relief to read! I'm actually going through this exact same thing right now and was starting to panic that something was wrong with my payroll. My Social Security withholding just dropped from $655 per paycheck to $152 last month, and I couldn't figure out what had happened. After reading all these explanations about the wage base limit, I checked my paystub and my year-to-date Social Security wages show $167,700. It's incredible that I never knew about this cap before - you'd think someone would have mentioned it when I started making more money! The timing is actually pretty good with the holidays coming up, but I'm definitely going to take everyone's advice about setting aside some of this extra money. The last thing I want is to get comfortable with the higher take-home pay and then get shocked when January rolls around and I'm suddenly missing $650+ per paycheck. Thanks to everyone for sharing your experiences - this community has been so helpful for understanding what seemed like a scary payroll issue but is actually just how the tax system works!