That's a great point! I did move about a year and a half ago, and while I used my new address on last year's return, I never submitted the specific change of address form. Maybe that's why I didn't get the PIN letter. Would updating my address now help me get this year's PIN, or is it too late for that?

Updating your address now won't get them to automatically send a new PIN letter for this year, unfortunately. The system doesn't work that way. But it's still worth updating your address for future communications. For your current situation, your best bet is still to retrieve the PIN online using the "Get an IP PIN" tool or contact the specialized unit as others have suggested. The PIN exists in their system assigned to you - you just need to retrieve it since the letter didn't reach you.

Same here! Never got my letter but retrieved it online. Just make sure you create an ID.me account first if you don't already have one - that's required for accessing the IRS online account services now.

Do all states have annual fees for LLCs? That might be a dealbreaker for me since my side gig only makes about 8k a year.

Not all states have the same fee structure. Some have low or no annual fees, while others like California are expensive. For example, Wyoming, New Mexico, and Arizona have very low annual fees under $100. If you're only making about $8k a year, you definitely need to calculate if the fees make sense for your situation. In many cases for smaller side hustles, operating as a sole proprietor and maximizing your eligible deductions on Schedule C is the most cost-effective approach. Just make sure you have good records of all business expenses and consider getting business insurance for liability protection instead of relying on an LLC structure.

That's interesting - wouldn't both show up on the same line of your tax return though? Schedule C income is Schedule C income whether it's from an LLC or sole prop, right?

Could you explain more about timing the income? I have some mutual funds in India I'm planning to sell. Would it be better to sell in January or March? And does it matter which bank account (NRE or NRO) I deposit the proceeds into?

Selling in January-March gives you more flexibility because you'll have that income in the current Indian tax year but can include it in next year's US taxes. This gives you almost a year to plan your overall tax strategy. For your mutual funds, it also depends on whether they're equity or debt funds, as they're taxed differently in India. As for accounts, it generally doesn't matter for US tax purposes whether you use NRE or NRO accounts - the US taxes worldwide income regardless. For Indian tax purposes, moving proceeds to an NRE account can sometimes offer advantages, but consult with an advisor about your specific situation.

Be careful with that approach. Giving up a green card after holding it for 8+ years can trigger the "exit tax" if you meet certain income/asset thresholds. The IRS treats it as if you sold all your worldwide assets on the day before expatriation. It's a pretty serious decision with long-term consequences.

This is super helpful, thank you! I just called the estate attorney and she's going to send me copies of all the paperwork including the 1099 forms. She seemed to think it was probably a coding error too. Do you know if I need to file an amended return or is a dispute letter enough?

If you never reported this money as income on your original tax return (which you shouldn't have if it was inheritance), then you don't need to file an amended return. You just need to respond to the IRS notice with a clear explanation and documentation. Your response should include: 1) Death certificate copy, 2) Documentation showing you were a beneficiary, 3) Any incorrect 1099 forms with an explanation of why they're wrong, and 4) Documentation of the step-up basis if there were securities involved. If all this seems overwhelming, it might be worth paying a tax professional who specializes in estates for a one-time consultation.

This is a really important point. My family went through this with my grandmother's IRA. We all got distributions and ALL of it was taxable because it was a pre-tax retirement account. The step-up basis rules don't apply to IRAs and 401ks the same way they do to regular investment accounts. OP specifically mentioned it was "not an IRA" but sometimes people don't realize what type of accounts they're inheriting. If it was any type of retirement account (traditional IRA, 401k, 403b, etc.), those distributions are definitely taxable.

Thank you for bringing this up! I'm 100% sure it was a regular brokerage account and not a retirement account. I just got off the phone with the estate attorney who confirmed it was a non-retirement investment account, so it should have gotten the step-up basis treatment. She's going to send me all the documentation tomorrow, but she believes Fidelity incorrectly coded the distribution which is why the IRS thinks I owe taxes. I'll update once I know more!

This is exactly what I've been wondering. Beyond just getting my tax situation fixed, can I sue them for damages? The stress this has caused has been unbelievable. I've had trouble sleeping, my credit score dropped, and I've spent countless hours trying to fix this mess. Would small claims court be appropriate, or should I look for an attorney who works on contingency?

This case is too complex and the damages potentially too large for small claims court. You need an attorney who specializes in tax identity theft or financial fraud. Many attorneys in this field will offer a free initial consultation. The damages you could pursue include: all tax penalties and interest, compensation for credit damage, costs for credit monitoring services, time spent resolving the issue (calculated at a reasonable hourly rate), and potentially punitive damages since their actions appear willful rather than accidental. Some states also allow for statutory damages for identity theft. I'd recommend contacting your state bar association for a referral to attorneys specializing in identity theft or tax fraud. Look for someone who has experience specifically with business-related identity theft, as this is more complex than typical consumer identity theft cases.

I was strictly a volunteer. I helped at events and occasionally assisted with marketing materials, but I was never an employee, never received compensation, and had no financial authority or access to accounts. I was not an officer or board member. I just let them use my SSN temporarily to set up the Square account when they were in a rush one day, with the explicit understanding that they would immediately change it to their Tax ID.

That makes this WAY worse from a legal perspective. As someone with nonprofit experience, I can tell you that what they did borders on criminal fraud. Nonprofits have EINs (Employer Identification Numbers) specifically for financial transactions. There is NEVER a legitimate reason to use a volunteer's SSN for merchant processing.