Thanks for this advice! Should I attach copies of the notices and payment confirmations to my return? And would it be better to file electronically or mail a paper return in my situation?

You don't need to attach copies of the notices to your return, but do keep them for your records. Instead, include a brief statement referencing the notice numbers and payment amounts on a separate sheet if filing by paper, or in the comments section if filing electronically. For your situation, electronic filing is generally better because it processes faster and you'll get confirmation of receipt. However, if your return is very late (which 2021 would be in 2025), some tax software may not support e-filing for prior years, so you might have to mail it. If mailing, definitely use certified mail with return receipt so you have proof of filing.

Actually, the IRS does pay interest on refunds that are issued more than 45 days after the return is filed, even for late-filed returns. The interest rate changes quarterly. It's not a lot, but it's something. I filed my 2019 taxes super late and still got interest on my refund.

Did your tax preparer explain why the 1095-A is treated differently than the B form? I'm trying to understand the difference between them.

The 1095-A is for Marketplace insurance and involves tax credits that need to be reconciled on your tax return. Those credits directly impact your tax liability, so the IRS needs that information. The 1095-B just proves you had coverage through a government program like Medicaid, which doesn't involve tax credits that need reconciliation. Since there's no direct tax impact from having Medicaid (no credits to calculate), there's nothing for the IRS to process from the form.

The federal penalty was removed, but some states still have their own individual mandates and penalties. Plus, the forms are still required to be sent out by insurance providers and government programs regardless.

How much did the CPA charge you for handling multiple years of unfiled returns? I'm in a similar situation but worried about the cost.

For three years of unfiled returns plus dealing with a lien (similar to garnishment), I paid about $1800. But honestly, it varies widely depending on your location and complexity. My situation included self-employment income and the tax pro had to reconstruct some missing records. The initial consultation was free, which helped me understand what I was getting into before committing. Many tax pros will work out payment plans too, especially if you're already in financial distress. Don't let potential costs stop you from at least talking to someone - most will give you a price estimate during the first conversation.

TurboTax is great but wouldn't a professional be better for dealing with the garnishment? That seems like the urgent problem here.

9 Could they also try to get the IRS to subordinate their lien instead of a full discharge? I've heard this can sometimes be easier to get approved if you're planning renovations that will increase the property value.

3 Yes, subordination is another option, particularly if you're planning significant renovations. With subordination, the IRS doesn't remove their lien but agrees to take a secondary position behind another lender. This could allow you to get renovation financing or a new mortgage on the property. For this to work, you'd need to demonstrate that the improvements will increase the property value enough that it ultimately benefits the IRS's position as well. Form 14134 is used for subordination requests. Like with discharge applications, documentation of your renovation plans and projected value increase will be critical.

1 That's really helpful, thanks! Did your brother end up paying anything to the IRS to get the discharge, or were they able to get it completely removed because of the property condition? I'm trying to figure out what this might end up costing me beyond attorney fees.

I tried reaching out to HR but they're taking forever to respond. I used to work for a small company and their HR department is just one person who's always swamped. Do you know if there's a legal timeframe they have to provide it within? I'm worried about missing the filing deadline.

There's no specific legal timeframe for providing a replacement W-2, unfortunately. Employers are only legally required to provide the original W-2 by January 31st. For replacements, they should provide it in a "timely manner," but that's pretty vague. If you're concerned about the filing deadline, you might want to consider filing Form 4868 for an automatic six-month extension. Just remember that this only extends the time to file, not the time to pay any taxes owed. You'd still need to estimate and pay any taxes due by the original deadline to avoid penalties and interest.

I did this a couple years ago when my W-2 got lost in the mail. You have to fill out Form 4852 (Substitute for W-2) along with your tax return. Just be careful because the paystub might not include taxable benefits or year-end adjustments that would show up on the actual W-2.

Thanks for the info on Form 4852! I found it on the IRS website and it looks straightforward enough. Did the IRS give you any trouble when you submitted this form instead of having the actual W-2?