I've never heard of "true-up" contributions. Would that explain why ADP insists the W-2 box 12 amount is "meaningless" compared to when contributions actually hit my account?

Yes, that might explain their strange language about the W-2 being "meaningless." With true-up contributions, the employer makes additional deposits to your 401(k) to ensure you receive the full match you're entitled to, even if your own contributions were front-loaded during the year. These adjustments typically happen in January for the previous year, which aligns with what they told you about January 2024 crediting. However, for contribution limit purposes, the IRS still looks at the tax year shown on your W-2. I'd suggest specifically asking ADP if your final "contribution" was actually a true-up adjustment rather than a regular paycheck deduction.

The limit for 2023 was $22,500, but don't forget they might have both traditional and Roth 401k contributions combined in that box, or maybe there's employer matching included? Not all money in box 12 counts toward the employee limit.

Thanks for bringing this up. I did pay the Delaware annual franchise tax for 2023, but then stopped when I abandoned the LLC. Should I have formally dissolved it with the state? As for New Mexico, I've registered for gross receipts tax but didn't think about how using the same EIN might create confusion. Would filing state tax returns in NM using the same EIN potentially trigger Delaware to think I'm still active there?

Yes, you should have formally dissolved your Delaware LLC by filing a Certificate of Cancellation with the Delaware Division of Corporations. Without formal dissolution, Delaware will continue to consider your entity active and may assess annual franchise taxes and penalties for failure to file. For New Mexico, using the same EIN shouldn't automatically trigger issues with Delaware, as they're separate state systems. However, for clarity in your records and to prevent future confusion, I strongly recommend formally dissolving the Delaware entity. It typically costs around $200 to file the dissolution paperwork, which is much cheaper than continued annual fees or potential penalties. The good news is that most states allow late dissolutions, so you can still properly close the Delaware LLC even though it's been a while since you abandoned it. This clean break will help you avoid any state tax complications while you focus on resolving the federal filing requirements we discussed earlier.

Is there a way to check if the IRS has already assessed penalties for the unfiled 5472 forms? I'm worried they might have been sending notices to my old address.

Thank you so much for this insider perspective! I filed my 1040-X yesterday and included a letter explaining the honest mistake. Knowing this is something that happens all the time and isn't considered criminal makes me feel sooooo much better. I haven't been able to sleep for days thinking about this!

You're welcome! This is exactly the right approach - filing the amendment promptly with a brief explanation. The letter is a nice touch that shows good faith. You'll get a notice in a few weeks acknowledging the amendment and telling you what amount is due with the calculated interest. Pay that promptly and the case will be closed. For future reference, always double-check that you have all tax documents before filing. Many employers also provide electronic copies of W-2s that you can download, which helps ensure you don't miss paper copies. Sleep well knowing you're definitely not prison-bound over this!

If you received a CP2000 notice that correctly identifies the missing income, you can simply respond to that notice rather than filing an amended return. Review the notice carefully to make sure all the information is correct, then follow the instructions to pay the amount due. The IRS has already done the recalculation for you.

Thanks for the suggestion! I don't think I qualify for EITC since I don't have kids and my income is a bit too high for a single person. I am taking the standard deduction though. It sounds like my real issue is the self-employment taxes on that gig income that I didn't plan for. Lesson learned for next year - I'll be setting aside money each month from my gig work.

Completely agree! TurboTax kept trying to upsell me to their $120 version to "maximize self-employment deductions." FreeTaxUSA found all the same stuff for like $15. And their interface actually explains things better too.

That's good to know! I felt like I was taking crazy pills when I switched and suddenly found all these deductions TurboTax never mentioned. Their basic version is practically useless for anyone with slightly complicated taxes. FreeTaxUSA actually walks you through the self-employment section with helpful explanations instead of dangling premium features in front of you constantly.

Thanks for mentioning this! I've already gotten my Michigan driver's license, registered to vote, and changed my car registration. I kept my California bank account open though since they have locations in Michigan too. Should I still consider closing it to be safe?

You don't necessarily need to close the California bank account, but definitely make sure you've changed the primary address on the account to your Michigan address. Having a CA bank account with a CA address could be one factor they look at. The most important things are already done - driver's license, voter registration, and vehicle registration show your intent to permanently reside in Michigan. Also make sure your employer has your Michigan address for your W-2, and that any investment accounts are updated with your new address.

TurboTax Premium worked great for my CA to WA move. It walked me through allocating income between states and explained which income belongs where. It costs more than the basic version but worth it for multi-state situations.