That's great advice about the transcripts! I just requested them online. Do you know how long it usually takes to get them? And would filing a complaint against the accountant actually help my case with the IRS at all?

You should be able to access your transcripts immediately if you set up online access. If you requested them by mail, it typically takes 5-10 business days. The transcripts will show all reported income, your filed return details, and any payments or credits applied to your account. Filing a complaint against the accountant probably won't directly help with your current IRS issue. The IRS generally holds taxpayers responsible for their returns regardless of who prepared them. However, if there were truly egregious errors or misconduct, documenting it officially could potentially help if you need to request penalty abatement based on reasonable cause. It's also just good for consumer protection so others don't experience similar problems.

Yes! I disputed a CP2000 from 2016 just last year. The key is having documentation. In my case, I had records showing I'd already paid the amount through withholding that wasn't properly credited. If you can prove your case with solid documentation, the year doesn't matter as much as having the evidence.

That's really encouraging to hear! I've been stressing about this thinking I had no chance. Luckily I'm somewhat of a document hoarder and kept all my stock transaction records from my brokerage. Going to start putting together my response letter this weekend.

Thanks for this suggestion! She does have a visa stamp in her passport. Are you saying we could use the visa number in place of an ITIN? I had no idea that was an option. Do you just enter the visa number where the tax form asks for the spouse's SSN/ITIN?

Not exactly - I should have been more clear. You can't use the visa number on the actual tax forms in place of an ITIN/SSN. What I meant was that for certain purposes (like opening bank accounts), sometimes the visa number can be used temporarily. For tax filing, you'd still need to follow one of these approaches: 1) Get the ITIN by submitting the W-7 with your return, 2) File as "married filing separately" now and amend later when you get the ITIN, or 3) File for an extension to give yourself more time to complete the ITIN process. Sorry for any confusion!

Did you need a professional translation service for the driver's license or just a certified translator? My wife has a Japanese driver's license but I'm not sure how to get it properly translated for the IRS.

Do you have to request a new PIN every year or does the IRS automatically send it? I'm worried about forgetting to get a new one.

The IRS automatically sends you a new IP PIN each year - you don't need to request it. They typically mail it in a letter around December or January before tax season starts. If you've created an online account with the IRS, you can also retrieve your current IP PIN there if you misplace the letter.

Were you able to get your refund back from the fake returns? I've heard horror stories about people waiting months or even years to get their money.

Did you find it difficult to set up QuickBooks initially? I've heard mixed things about how user-friendly it is. Also, does it handle the LLC specifics well?

QuickBooks has a bit of a learning curve at first, but it's not too bad for a basic setup. I watched a couple YouTube tutorials and got comfortable with it in about a week. The mobile app is actually pretty intuitive for day-to-day stuff like taking pictures of receipts and tracking mileage. For LLC specifics, it handles the basics well for a single-member LLC (which is taxed as a sole proprietorship by default). If you have a more complex LLC setup with multiple members or special tax elections, you might need QuickBooks Online rather than Self-Employed. The main thing is that it keeps your business finances separate and organized, which is crucial for any LLC regardless of tax treatment.

I've been using TurboTax Home & Business for my LLC for 3 years now and it's actually pretty good. It walks you through all the business deductions and asks a ton of questions to make sure you don't miss anything. Costs around $170 for federal and state filing, which is way cheaper than a preparer.

Thanks for the suggestion. We have considered that, but my property is in a really hot location that my mom has specifically wanted to invest in for years. It's also got some unique features that make it perfect for the rental strategy she wants to pursue. I'm willing to pay my capital gains tax, I just want to make sure she can get her 1031 benefits. But you're right that it might not be worth the risk if there's a chance her exchange could be invalidated.

I understand wanting a specific property type and location. One alternative approach might be for your mom to purchase a different replacement property now to complete her 1031 exchange properly. Then later (after a reasonable time period has passed), she could do another 1031 exchange from that property into yours. This would require more time and potentially more transaction costs, but it would avoid directly linking her current 1031 exchange funds to your property. You'd still owe taxes when you sell, but at least her exchange would be protected. Just make sure there's enough time and separate transactions between her current exchange and any purchase from you to avoid the step transaction doctrine.

That's actually incorrect and could get the OP in serious trouble. The related party rules absolutely apply even when only one party is doing a 1031 exchange. This is specifically addressed in Revenue Ruling 2002-83, which states that a taxpayer cannot use a qualified intermediary to acquire replacement property from a related party, even if the related party recognizes all gain in the transaction. The IRS's concern is that the exchange funds would ultimately be going to a related party, which could be used as a way to cash out while still getting exchange treatment. This is prohibited regardless of whether both parties are doing exchanges.