This is really helpful! For the small tax case procedure, does that mean I don't need to hire a lawyer? I've been worried about the cost of legal representation on top of everything else.

For small tax cases, you don't need to hire a lawyer - many people represent themselves successfully. The process is designed to be more accessible. Judges in these cases tend to be more patient with self-represented taxpayers and will often help guide you through the process. That said, you might want to consider a consultation with a tax professional who has Tax Court experience, even if just for an hour, to review your petition before filing. Some Low Income Taxpayer Clinics (LITCs) offer free or low-cost help if you qualify based on income. Many law schools also run tax clinics where law students supervised by professors can help with Tax Court cases.

The Taxpayer Advocate Service is completely overwhelmed right now. I submitted a request in January and still haven't heard back. They're prioritizing cases where people are facing immediate financial hardship like eviction or utility shutoffs.

How do you know if you qualify for that Recovery Rebate thing? I filed in 2020 but honestly can't remember if I got all the stimulus payments or not.

The easiest way to check is to look at your 2020 tax return - there should be a Recovery Rebate Credit Worksheet or a line on the Form 1040 itself (Line 30). If that line is blank or zero, you might have missed out. You qualify if you didn't receive the full stimulus payments you were entitled to in 2020. The first payment was $1,200 per adult and $500 per qualifying child, and the second was $600 per adult and per qualifying child. If your income wasn't too high and you didn't receive these full amounts, you might be eligible for the credit.

You generally have 3 years from the original due date to claim a refund for a given tax year. Since 2020 taxes were originally due May 17, 2021 (extended due to COVID), you have until May 17, 2024 to file an amended return or respond to an IRS letter about potential additional refunds. I wouldn't wait too long though - processing times can be lengthy, especially for amended returns or responses to IRS inquiries.

Does filing an extension because of a late K-1 increase your chances of being audited? I've always heard you should avoid extensions if possible.

Filing an extension does not increase your audit risk at all. That's a common myth. In fact, tax professionals file extensions for many of their clients as standard practice. The key is making sure you pay any estimated tax due when you file the extension. Penalties are for not paying on time, not for filing the actual return later. As long as you make a good faith estimate of what you owe and pay that amount with your extension request, you're completely fine.

This is great advice! I had the same issue with a wrong EIN and it was a nightmare to fix. I'd also recommend comparing the K-1 you receive with any estimated K-1 info your brother might have given you during the year. If there are big differences, ask why before filing.

9 Does the IRS prefer e-filing or paper for prior years? Will one get processed faster?

14 For prior years, you actually don't have a choice anymore - you have to file paper returns. The IRS only allows e-filing for current year and sometimes the year immediately before (during the beginning of filing season). Paper returns for prior years do take longer to process - typically 6-8 weeks minimum, and sometimes longer if there's a backlog. Make sure you send them via certified mail so you have proof of when you submitted them. Also, file each year separately in different envelopes to avoid confusion at the processing centers.

16 Yes! I had to do this. Even if they're not in the portal, the payroll department should be able to generate a duplicate W2. I just called and explained the situation and they emailed me copies within a few days. If that doesn't work, you can also request a wage and income transcript from the IRS which shows all reported W2 info.

Does this tax credit thing work in all states? I'm in California and about to trade in my car next month. Would be nice to avoid paying property tax on both vehicles.

The trade-in tax credit works differently state by state. California actually doesn't have a personal property tax on vehicles like many other states do - they have a VLF (Vehicle License Fee) which operates differently. In states with actual property tax on vehicles (like Virginia, Missouri, etc.), the trade-in often ends your tax liability for the traded vehicle, but you'll need to notify the county. In California, your registration fees are adjusted when you transfer or sell, but you need to file a Notice of Transfer with the DMV within 5 days. The dealer should handle most of this paperwork for you during the trade-in process.

Yep, documentation is key! I lost my trade-in paperwork and had to pay the full year tax on a car I only owned for 3 months. Lesson learned the hard way.