How do you check your transcript? Is that something on the IRS website?

Yes, you can access your tax transcripts through the IRS website by creating an account at irs.gov/account. Once logged in, you can request various transcript types - the "account transcript" is most useful for tracking audit status as it shows all activity on your account. If you're not tech savvy or have trouble with the online verification, you can also request transcripts by mail using Form 4506-T, but obviously that takes longer to receive.

I tried calling the number on my audit letter but keep getting voicemail. Is it worth leaving messages or is there a better time to call?

My brother works as a tax attorney and he says these FTC actions sometimes end with settlements that include customer refunds. But don't hold your breath - even if H&R Block settles, it could take a year or more before any money gets distributed. And the amounts are usually pretty small per person.

Thanks for the info. I figured it might be a long shot. I'm just annoyed that they've been getting away with this for so long. Definitely switching to something else next year.

You're probably not in their "target demographic" for the free version then. The FTC complaint isn't saying H&R Block is bad at doing taxes - it's saying they trick people who qualify for free filing into paying. If you have a more complex tax situation with lots of deductions, you probably should be paying for tax help anyway.

Do you know if there's a way to easily determine which states require their own estate tax returns? I'm in Florida but my mom owned property in two other states as well.

Florida doesn't have a state estate tax, so you're good there. But if your mom owned property in other states, you may need to file non-resident estate tax returns in those states depending on which ones they are. Currently, only 12 states plus DC have estate taxes: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. If the properties are in any of these, you'll likely need to file. Some states have exemption thresholds much lower than the federal one, so even smaller estates might owe state estate taxes. I'd recommend checking the tax department websites for each state where property was owned just to be safe.

I used TaxAct for my father's estate last year and it handled the K-1 from his business partnership really well. It was much cheaper than TurboTax and had specific guidance for estate returns. They have a section specifically for fiduciary returns that walks you through the 1041 step by step.

Is there a specific form the IRS uses to collect this financial information? I'm dealing with a different tax issue but also need to show my financial situation.

Yes, the IRS typically uses Form 433-A for individuals or 433-B for businesses to collect financial information when setting up payment plans or considering settlements. It's extremely detailed - asks about all income sources, expenses, assets, and liabilities. They may also request supporting documentation like bank statements and pay stubs. I recommend starting to compile this information early because it can take time to gather everything. Also, be completely honest on these forms - the IRS can verify much of this information, and additional dishonesty at this stage would only make your situation worse.

This is the best advice here. The distinction between poor documentation and intentional fraud is HUGE in the eyes of the IRS and the law. Let your attorney frame the situation appropriately.

Thank you so much for this warning. I definitely would have just blurted everything out in panic if I hadn't read this. I'll make sure to let the attorney handle all communication and not volunteer anything about what I was thinking or intending. I've contacted a tax attorney who specializes in these cases and have an appointment tomorrow morning. I'm going to bring copies of all the audit letters and my previous tax returns. Should I prepare anything else for this first meeting?

Filing your 2024 taxes shouldn't be directly affected by your unfiled 2021 return. Each tax year is technically treated separately. The IRS system won't automatically block you from e-filing your 2024 return just because 2021 is missing. However, there can be indirect effects. If you're claiming certain credits or deductions in 2024 that relate to prior year information, there could be verification issues. Additionally, if the IRS has already started sending you notices about your unfiled 2021 return, it's best to address that situation promptly rather than filing a new year while ignoring the past issue.

Yeah the IRS got a funding boost recently and they've been upgrading their systems to better track unfiled returns. They're definitely sending more notices out. But I've heard they're still prioritizing high-income non-filers over people who made under $25k. They go where the money is!