This is super helpful advice, thank you! I have most of these documents but didn't think to keep everything organized for tax purposes. Do you know how many years California can go back to audit someone who moved out of state? I'm worried they might come after me years later.

Generally, California has 4 years from the date you filed your return to audit you. However, if they suspect you substantially underreported income, they can go back 6 years. If they suspect fraud, there's no time limit at all. The most important thing is being able to prove the specific date you ended your California residency. They'll look for contradictory evidence - like if you kept a California driver's license, maintained your primary physician there, or kept significant banking relationships in the state. Make sure everything aligns with your claimed residency change date, and keep those records for at least 6 years.

I used FreeTaxUSA for my move from Michigan to Tennessee last year and it handled the part-year residency return just fine. Their interface for state returns isn't as polished as TurboTax, but it walks you through all the necessary questions about residency dates and income allocation. Saved me like $70 compared to TurboTax and got the same refund amount.

Have you found any good resources for getting up to speed on crypto tax issues? I'm seeing more clients mentioning crypto but honestly don't feel confident handling the more complex situations yet.

There are several excellent resources for getting up to speed on crypto taxation. The Taxation of Digital Assets course from the AICPA is comprehensive and regularly updated. I also recommend joining the Digital Asset Tax Policy Coalition which provides excellent technical updates and practical guidance. For case-specific questions, Tax Notes has an extensive library of articles on cryptocurrency taxation that I reference frequently. The blockchain alliance also hosts monthly webinars covering emerging issues. Start with understanding the basics of capital gain/loss treatment, then build knowledge on more complex areas like DeFi, staking, and NFTs where the guidance is still evolving.

Interesting perspective! What kind of background or training would you recommend for someone wanting to specialize in these high-stakes audits? Are there particular areas of tax law that are most valuable?

Thanks for the suggestion! I haven't sold any extended warranties that I know of, but I did have a couple customers who got gap insurance. Do you know how long that cancellation window typically is? And would they typically tell me if a customer cancelled, or does it just show up as a deduction?

The cancellation window varies by product and state, but typically ranges from 30-90 days for most F&I products like gap insurance. Some states allow cancellations up to a year in certain circumstances. Unfortunately, most dealerships don't proactively inform salespeople about cancellations. The F&I department processes the cancellation, accounting adjusts the commission structure, and payroll just applies the deduction. It's a terrible system that leaves salespeople confused. This is definitely something to ask your finance manager about - they should be able to link that specific deduction to a customer's canceled product.

I second this! My dealer takes $25 out every time we get a low survey score from a customer. Shows up as "customer satisfaction adjustment" tho. Ask your sales manager for real.

Are these easy to buy? Do you just get them through a regular brokerage account or is there some special process? Always been confused about bonds in general.

You can buy municipal bonds through most regular brokerage accounts like Fidelity, Vanguard, Charles Schwab, etc. No special process needed. Many people find it easier to invest in municipal bond funds rather than individual bonds - they provide diversification and are more liquid. Just be aware that while the interest is tax-exempt, if you sell the bonds before maturity at a profit, you may owe capital gains tax on that profit. Also, some municipal bond interest can trigger the Alternative Minimum Tax (AMT) if you're subject to it, so look for bonds specifically labeled as "AMT-free" if that's a concern for you.

I bought some last year! Really easy through TreasuryDirect.gov though their website looks like it's from 1997 lol. You can put in up to $10k per person per year. The interest rate adjusts with inflation every 6 months. Definitely a good place to park some money that's safe from both market fluctuations AND taxes.

What's Form 8606? My tax software never prompts me for this when I enter my Roth info. Is this something I need to fill out separately?

Form 8606 is used to report nondeductible contributions to traditional IRAs and distributions from Roth IRAs. Most tax software should prompt for it when you enter a 1099-R for a Roth distribution, but sometimes you need to specifically look for it or indicate you want to file it. It's important because it helps track your "basis" (the amount you've contributed) in your IRAs, which determines the taxable portion of future distributions. For Roth withdrawals, it helps document that you're taking out contributions (not taxable) rather than earnings (potentially taxable). If your software doesn't automatically include it, you can usually find it in a forms search and add it manually.

Do you know if there's any way to get this historical info if you haven't been tracking it? I've had my Roth since 2017 but never kept records myself.