That's a great idea! I'll definitely suggest they contact their tax preparer. Do you know if most preparers offer this service or is it something specialized?

Most professional tax preparers can do this if they have proper authorization. Your in-laws would need to have signed a Form 8821 or Power of Attorney (Form 2848) allowing the preparer to access their tax information. If they didn't sign this initially, they might need to do that first. Many enrolled agents and CPAs routinely offer transcript services as part of their package when they prepare returns. It's worth asking, especially since the preparer is already familiar with their tax situation and could explain everything in context.

Does setting up a payment plan stop the penalties from adding up? Or do you still get charged interest while paying it off?

Is there any exception to this rule? I thought if you use the refinance money for home improvements, you can deduct points immediately?

That's a really helpful tip - I hadn't thought to check my monthly statements! I'll take a look at mine tonight. Thanks!

Is Publication 15 easy to understand for someone who isn't great with tax stuff? Or is there a simplified version somewhere? Also, what specific parts should I look at to check my withholdings?

Publication 15 isn't the most user-friendly document if you're not familiar with tax terminology, but the withholding tables are actually pretty straightforward. Look for the section called "Income Tax Withholding Tables" - there are separate tables for different pay periods (weekly, biweekly, monthly). The key sections to check are the Federal Income Tax tables, the Social Security tax rate (currently 6.2% on earnings up to a certain limit), and Medicare tax (1.45% on all earnings). For most people, verifying these three calculations will catch the majority of potential errors. If you have state income tax, you'll need to check your state's department of revenue website for those rates.

I work in HR for a large company that uses ADP. Most bigger companies finish processing W-2s around mid-January, but they often don't release them until closer to the January 31 deadline. Sometimes this is because they're still making final adjustments or quality checks. With ADP specifically, employees can usually get early access through their online portal before paper copies are mailed. Check if you have an ADP login - if so, your W-2 might be available electronically 1-2 weeks before the paper version is sent.

Thanks for the insider info! I do have an ADP login but never really use it except to download paystubs occasionally. I'll definitely check there in mid-January. Hopefully I can get a head start on filing since we're planning to use our refund for a down payment on a house!

This is so true! I made the same mistake. The "tax relief experts" took my money and then just submitted an installment agreement. When I asked about the "pennies on the dollar" settlement they promised in their ads, they said I "didn't qualify" but only after they had my money. Do these companies ever actually get anyone an Offer in Compromise?

Very few of their clients actually qualify for an Offer in Compromise (the "pennies on the dollar" program). The IRS only approves those when you can prove you have no ability to pay and limited assets. Most people with steady income don't qualify. What these companies do is take advantage of people's fear of the IRS. They charge premium prices for standard services like filing back tax returns and setting up payment plans. The worst part is they often don't even look for legitimate deductions that could reduce the total amount owed. They're focused on processing as many clients as possible, not giving personalized service.

The IRS generally focuses on the last 6 years for unfiled returns, but technically there's no statute of limitations on unfiled tax returns. For practical purposes, most CPAs will recommend filing at least the last 3-6 years to get back into compliance.

Thanks for mentioning this, but no, it was just empty desert land that nobody lived on. No structures at all. It literally sat empty for decades until someone decided it was valuable because of the highway exit nearby.

Good to confirm. One other thing to consider - check if your state has different rules for inherited property taxes. Some states have their own tax treatment that might be more favorable than federal. For example, some states might use their own version of stepped-up basis or have special provisions for long-held family property.

This wouldn't trigger gift tax because it's a sale at fair market value, not a gift. The inheritance portion already happened when OP's mother passed away, and that would fall under estate tax rules (though with only a 15% interest in land worth $800K, it would be well below the estate tax threshold). The sale itself is just converting an asset to cash at market value - no gifting involved. OP and their sister would just each report their portion of capital gains based on their stepped-up basis.