Question - how does this work with AGI limitations? I know there are percentage limits on charitable deductions but they seem to vary based on the type of property and organization. Would donating art to a museum be different than donating it to something like a hospital charity auction?

One thing I haven't seen mentioned yet is the Form 8283 requirements and how they interact with the $5,000 threshold. If your total noncash charitable deductions for the year exceed $500, you need to file Form 8283. But the really important part is Section B - if any single item or group of similar items is valued over $5,000, you need a qualified appraisal AND the appraiser must sign Section B of the form. What caught me off guard when I donated some artwork last year is that the IRS can also request additional documentation even years later. They have the right to contact your appraiser directly to verify the appraisal, and if the appraiser can't substantiate their valuation methods or doesn't meet the IRS qualification requirements, your entire deduction could be disallowed. Also worth noting - if you're donating multiple pieces, the IRS looks at the total value of "similar items" together. So if you donate three paintings worth $4,000 each in the same tax year, that's treated as $12,000 of similar property and triggers all the higher-value requirements even though each individual piece is under $5,000.

11 Did the IRS send you a specific notice number? Like CP-2000 or something similar? That would help identify exactly what triggered this in their system. The form numbers matter a lot for resolving these issues. Also, SAVE EVERYTHING. Every letter, every notice, and document every phone call (date, time, representative name/ID, what was discussed). The deceased taxpayer issue often bounces between departments, and having a paper trail is crucial if you need to escalate.

This is such a frustrating situation, but you're definitely not alone! I went through something similar two years ago when the IRS decided I was deceased right in the middle of tax season. Here's what I learned from my experience: The "deceased" flag usually comes from the Social Security Administration's Death Master File, often due to clerical errors or mix-ups with similar names/SSNs. The key is to tackle this systematically: 1) **Start with SSA immediately** - Don't wait. Visit your local SSA office with multiple forms of ID (driver's license, passport, birth certificate, etc.). Request they correct their records and give you written confirmation. 2) **Get everything in writing** - When SSA fixes their records, ask for an official letter stating the error was corrected. You'll need this for every other agency. 3) **File a paper return** - Unfortunately, e-filing likely won't work until this is resolved. Include a cover letter explaining the situation and attach a copy of the SSA correction letter. 4) **Check your credit reports** - The deceased flag can spread to credit bureaus, so monitor all three and dispute any incorrect death records immediately. The whole process took me about 2-3 months to fully resolve, and my refund was delayed, but I did eventually get everything sorted out. Hang in there - you'll get through this bureaucratic nightmare!

Could someone clarify if the verification method is tied to specific credits claimed? It's like the IRS is using different levels of security - online is like the standard door lock, phone is a deadbolt, and in-person is the bank vault. I'm wondering if claiming certain credits (like EITC or CTC) automatically triggers the higher security levels.

I did some digging into this because it seemed so random (and frustrating!). Turns out the IRS uses something called the Return Review Program (RRP) which has different risk scoring models. 😂 Your "verification path" is assigned based on your risk score and available verification channels in your area. Fun fact: they actually increased in-person verifications by 25% this tax season according to the National Taxpayer Advocate report. So if you got stuck with the in-person option, you're definitely not alone!

Don't overlook the fact that the CP3219A means the IRS has officially rejected the explanation you provided for the CP2000. The automatic generation theory might be true, but you need to treat this seriously. I recommend sending a formal protest letter along with your response. Include a timeline of all communications, copies of everything you've sent before, and specifically request abatement of any penalties since you responded timely to the CP2000. Also specify that you're contesting their determination on the basis that you properly reported your crypto transactions and actually incurred losses, not gains.

I dealt with this exact situation last year with my 2020 crypto taxes. The key thing to understand is that the IRS computer systems don't talk to each other very well. Your CP3219A was likely auto-generated before your amended return response was processed - this is incredibly common. Here's what worked for me: I immediately called the IRS using the number on the CP3219A notice and asked them to check if they had received my previous response to the CP2000. The agent confirmed they had it but it was sitting in a different department's queue. She was able to put a "hold" code on my account to stop any further automated notices while my case was being reviewed. The most important thing is NOT to ignore the CP3219A deadline. Even though you already responded once, treat this as a separate notice that requires a response within 90 days. Send copies of everything you sent before, but also include a cover letter that references both notice numbers and explains the timeline of your responses. One more tip - make sure you're sending your response to the correct address listed on the CP3219A notice, as it's often different from the CP2000 response address. Good luck!

Just curious - has anyone here used an installment sale for foreign property? The buyer of my land in Mexico wants to pay me over 3 years instead of all at once, and I'm not sure how to report this on US taxes.

This is a complex situation that definitely requires careful attention to US tax obligations. Since you're a US taxpayer, you'll need to report this foreign property sale regardless of where the proceeds are deposited - the location of the bank account doesn't change your tax liability. A few key points to consider beyond what others have mentioned: 1. **Timing of recognition**: The sale will be taxable in the year it closes, not necessarily when you receive all the money (unless you structure it as an installment sale). 2. **State tax implications**: Don't forget to check if your state has any additional reporting requirements for foreign asset sales. 3. **Record keeping**: Start gathering all documentation now - original purchase/inheritance records, any improvements made to the property, foreign taxes paid, and currency exchange rates on relevant dates. 4. **Professional help**: Given the complexity with inheritance basis, potential foreign tax credits, and various reporting forms (8938, FBAR, etc.), I'd strongly echo the advice to work with a tax professional experienced in international transactions. The cost of professional help is usually much less than the penalties for getting these filings wrong. The fact that payment is coming directly to your US account might actually simplify some aspects, but it doesn't reduce your reporting obligations. Make sure you have a clear paper trail of the entire transaction.