Do you remember what the monthly payment amount was for your $5,800 balance? I'm trying to figure out if they let you choose how much to pay each month or if they assign an amount.

You generally can choose your monthly payment amount as long as the debt will be paid off within the required timeframe. For amounts under $10,000, that timeframe is 3 years (36 months). So in my case, the minimum payment would have been about $161 per month not including interest and penalties. I actually opted to pay $200 per month to account for the ongoing interest and penalties and to clear the debt faster. They let me choose this amount during the application process. I set up direct debit from my checking account to avoid having to remember to make the payments and to get the lowest setup fee.

Completely agree about filing on time! The failure-to-file penalty is 5% of the unpaid taxes for each month your return is late, up to 25%. The failure-to-pay penalty is much lower at 0.5% per month.

Thank you for pointing this out! He did file on time, he just couldn't pay the full amount at once. I'll definitely suggest he try the online system since that seems to be the consensus here - much easier than trying to call again.

These volunteer programs are hit or miss for investment questions though. I tried VITA last year and the volunteer wasn't comfortable answering my stock trading questions. Said they mostly handle basic returns without investment income.

Do you know if there's a way to see just the reassessed properties? When I look at the county website, I can't tell which ones have been recently reassessed vs ones that haven't changed hands in years.

Most county websites allow you to filter or sort by "sale date" or "transfer date." Once you find properties with recent sales, you can look at their assessment history to see both the before and after values. The assessment records typically show the date of assessment changes as well. If your county site doesn't have good filtering options, you can usually still see the last sale date on each property record. Just look for ones that sold recently, then check if their assessed value changed after that sale date.

This happened to me too! I got a random $1,200 bill about 5 months after moving in. My mortgage company didn't handle it because it was outside the normal property tax schedule.

Would he need to hire a lawyer to deal with this if the company insists on the W-9? That could get expensive real quick.

Not necessarily. There are several free options before considering a lawyer. He can file Form SS-8 with the IRS to request a determination of worker status, which costs nothing. He can also contact his state's labor department, which typically offers free assistance with worker classification issues. If he's misclassified and files the SS-8, the company may receive a notice from the IRS about proper classification. Many companies will correct the issue at that point to avoid penalties. Legal help is usually a last resort after exhausting these administrative remedies.

This is a really good point! My cousin's small construction business did something similar - gave 1099s to everyone because that's what the previous owner had done. When an employee pointed out the error, they were actually grateful and fixed it right away. Not every misclassification is malicious - sometimes it's just ignorance.

The property is in Arizona. I hadn't even thought about state-specific taxes, though. Do they handle the basis calculation differently there?

Arizona doesn't have a state inheritance tax or estate tax, so you're in luck there! You'll only need to worry about federal taxes on any gain above your stepped-up basis. Arizona follows the federal rules for stepped-up basis, so whatever fair market value you establish for federal tax purposes will also work for your Arizona state tax return. Just make sure you keep thorough documentation of how you determined the property's value at the time of inheritance.

That's terrible advice and could get OP audited. The IRS specifically looks for people claiming no gain on inherited property sales. The stepped-up basis has to be established at date of death, not date of sale. If there was significant appreciation between those dates (like a developer suddenly becoming interested), claiming no gain would raise red flags.