I'm going through this exact same situation right now! Got my 5071C letter two weeks ago and have been losing sleep over it. Reading everyone's real experiences here is way more helpful than the generic IRS timelines. Quick question for those who've been through this - after you verified online, did you get any confirmation email or notice that it went through successfully? I completed the ID.me process but I'm paranoid I missed something. The website just said "verification complete" but I didn't get any follow-up documentation. Also seeing a lot of mentions about checking transcripts - is there a specific transcript type I should be looking at? I've never accessed mine before but sounds like it's crucial for tracking actual progress vs the useless WMR updates. Really hoping I can get on one of those faster timelines like Ava experienced rather than the horror stories of 12+ weeks!

I'm currently going through this same verification process and found this thread incredibly helpful! Got my 5071C letter last week and verified through ID.me on Monday. The real-world timelines you all shared (17-37 days) are so much more realistic than the generic "9 weeks" the IRS keeps throwing around. For anyone else in this boat - I called the IRS helpline yesterday (used the early morning trick, called right at 7am) and they confirmed that ID.me verifications are processing much faster than phone/mail verifications right now. The agent said they're seeing most online verifications clear within 3-4 weeks. Also wanted to add - if you're a student like the OP, definitely reach out to your school's financial aid office about the delay. Most universities have emergency loan programs or payment deferrals for exactly this situation. Mine gave me a 45-day extension when I explained the IRS verification delay, which takes a lot of pressure off while waiting. Checking my transcript daily now and hoping to see that TC 971 code appear soon. This community is a lifesaver for getting real info instead of the IRS runaround!

I'm dealing with a similar situation right now with my father's estate. One thing that caught my attention in your post is that you mentioned setting up an estate checking account and planning to liquidate the entire IRA into it. You might want to reconsider this approach. Instead of liquidating the full $450k at once, you could consider taking distributions over multiple tax years to potentially keep the estate (and eventually you and your brother) in lower tax brackets. The 10-year rule for inherited IRAs doesn't apply the same way when there are no designated beneficiaries, but you still have some flexibility in timing. Also, make sure you understand the required minimum distribution rules that may apply to the estate for the IRA. The estate may need to continue taking RMDs based on your mother's age at death until the account is fully distributed. Given the complexity and the substantial amount involved, I'd really recommend consulting with a tax professional who specializes in estate taxation before making any major distribution decisions. The tax implications of how and when you distribute this money could save or cost you thousands of dollars.

Welcome to the community! I've been helping families navigate Form 1041 and inherited IRA situations for several years, and your situation with the $450k traditional IRA without beneficiaries is definitely complex but manageable with the right approach. Based on the excellent advice already shared here, I want to emphasize a few key points that could significantly impact your tax outcome: First, absolutely get that official date-of-death valuation from the IRA custodian as Santiago mentioned. This becomes your baseline for all tax calculations and is required for both the Form 1041 and Pennsylvania inheritance tax filings. Second, strongly consider the multi-year distribution strategy that several members have suggested. With $225k each, you and your brother would likely jump into the highest tax brackets if you take everything in one year. Spreading distributions across 2-3 years could save thousands in taxes, even after accounting for any RMD requirements. Third, regarding Pennsylvania specifically - PA inheritance tax is calculated separately from income tax, and the timing of distributions can affect both. The 4.5% inheritance tax rate for direct descendants applies to the full inherited amount, but income tax planning can still be optimized through distribution timing. Given the substantial amounts involved and the complexity of coordinating federal Form 1041, state inheritance tax, and personal income tax implications, I'd recommend getting professional guidance before making any major distribution decisions. The members who mentioned taxr.ai and connecting with specialized CPAs are giving you solid advice - the upfront cost will likely be far less than the potential tax savings from proper planning. Document everything meticulously and don't rush the process. With proper planning, you can navigate this successfully while minimizing the tax impact.

I had the exact same problem last tax season! My former employer sent both a W2 and 1099-NEC for the same consulting work. I called their accounting department and apparently they switched payroll systems mid-year and accidentally processed me in both systems. They issued a corrected form eventually but it took weeks of calling. In the meantime, I filed an extension to avoid the April deadline pressure.

This is definitely a duplicate reporting error that needs to be resolved before filing. Since you only received one payment of $3,247.25, reporting both forms would incorrectly double your income. My recommendation is to contact both your former employer AND the class action settlement administrator (if different) to clarify which form is correct. Class action settlements can be complex - sometimes they're treated as wages (W-2) if compensating for lost income, or as miscellaneous income (1099-MISC) if they're damages or interest. The key difference is that W-2 income already has taxes withheld, while 1099-MISC income means you'll owe self-employment taxes on top of regular income tax. Given that one form shows $680 in withholdings and the other shows none, this suggests they're unsure which classification applies. Document all your communication attempts. If you can't get a timely correction, consider filing an extension to give yourself more time to resolve this, or consult with a tax professional who can help you determine the proper reporting method and provide documentation to support your filing position.

Has anyone else noticed that TurboTax doesn't handle the supplemental information on 1099-Bs very well? I have RSUs where the 1099-B has this cryptic note about "Ordinary income of $X already included in Box 1 of Form W-2" but TurboTax doesn't seem to recognize that when I import.

I just went through this exact situation last month and wanted to share what I learned. The key thing that saved me was creating a spreadsheet to track everything separately before entering it into TurboTax. For RSUs, I listed each vesting event with the vesting date, number of shares, FMV on vesting date, and which shares were sold immediately vs. kept. The shares sold for tax withholding usually have minimal gain/loss since they're sold right at vesting. For ESPP, I tracked the offering period start date, purchase date, purchase price, and sale date for each transaction. This helped me determine qualifying vs. non-qualifying dispositions. One gotcha I discovered: if you have multiple RSU vest dates throughout the year and then sell shares later, your broker might use FIFO (first in, first out) to determine which specific shares you sold. This can affect your cost basis calculation. Also, double-check that your W-2 Box 1 includes all your RSU income. Mine was about $8K higher than my base salary due to the vested RSUs. Once I confirmed that, I knew I needed to adjust the cost basis on my 1099-B to avoid double taxation. The whole process took me about 3 hours to sort out, but it was worth it to make sure I got it right!

This DD switch happened to me last year and it was actually better than waiting for a check! My sister's paper check took almost 4 weeks longer than my direct deposit, even though we filed on the same day. The way taxr.ai breaks down those transcript codes is way more detailed than what the IRS site tells you - saved me hours of trying to decode all those numbers and dates myself. Definitely worth checking out compared to the headache of calling or waiting without knowing.

This exact thing happened to my neighbor! She was checking her mailbox religiously for 3 weeks and then boom - the money just showed up in her checking account one morning. She called the IRS and they explained that if you've received direct deposit in previous years, their system sometimes defaults to that method even if you select paper check on your current return. It's like their computer remembers your banking info and tries to be "helpful" by sending it the faster way. Super confusing when you're not expecting it though! I'd definitely keep an eye on both your bank account and mailbox just to be safe. With two little ones you definitely don't want to miss it wherever it lands! 💰