This is a really common source of confusion, and you're absolutely right to question this practice. What your client is doing - mixing disregarded entity EINs with parent W-9s - creates unnecessary complications and doesn't align with IRS requirements. The key issue here is that a disregarded entity, by definition, is ignored for federal tax purposes. Even if the disregarded entity has its own EIN (which it might need for state taxes, employment taxes, or banking purposes), for federal information reporting like 1099s, you must use the parent/owner's EIN. Your client should provide clean W-9s with: - Line 1: Disregarded entity name - Line 2: Parent/owner name - Part I: Parent/owner's EIN If they need you to track payments separately by disregarded entity for their internal purposes, that's fine - but the 1099s should still be issued under the parent's EIN. You might want to explain that using the disregarded entity's EIN could create matching problems when the IRS tries to reconcile the 1099s with filed tax returns, since the disregarded entity doesn't file its own return. I'd recommend having them provide corrected W-9s that follow standard IRS guidelines to avoid any compliance issues down the road.

I'm dealing with a similar situation at my CPA firm and wanted to share what we've learned from working through this with several clients. The confusion often stems from the fact that disregarded entities can have legitimate business reasons for obtaining their own EINs - like opening bank accounts, getting business licenses, or handling state-level requirements - but that doesn't change their federal tax treatment. What we've found helpful is explaining to clients that having an EIN doesn't automatically make an entity "regarded" for federal tax purposes. The entity classification election (or lack thereof) determines tax treatment, not the EIN itself. A single-member LLC that never made an entity classification election remains disregarded regardless of whether it has its own EIN. For your banking compliance purposes, I'd recommend sticking to the standard W-9 format that others have outlined here. If the client needs internal tracking by entity, you could potentially accommodate that in your internal systems while still issuing 1099s under the correct parent EIN. Document their requests but follow IRS guidelines for the actual reporting. The last thing you want is to create a paper trail that shows you knowingly deviated from standard practices, especially in a regulated industry like banking. Have you considered reaching out to the client's tax preparer directly? Sometimes they can help explain why proper W-9 completion is important for their tax filings.

I've been through this exact situation and can confirm what everyone else is saying - you absolutely need to file those missing 8606 forms, and yes, you'll likely need to amend your 1040s too. The blank lines 4a/4b are definitely problematic. Even though your conversions were non-taxable, the IRS matching system expects to see those 1099-R amounts reported somewhere on your return. When they don't find them, it creates a mismatch that could trigger unwanted attention. Here's the approach that worked for me: First, I filed all missing 8606 forms separately by mail with "Filed pursuant to Section 301.9100-2" written at the top for penalty relief. Then I waited about 6-8 weeks before filing 1040X amendments to add the missing conversion amounts to lines 4a (full distribution) and 4b ($0 taxable portion). The good news is that since you made non-deductible contributions and never took improper deductions, this should be tax-neutral. You're just cleaning up the paperwork trail to properly document what already happened. Your old preparer was completely wrong - Form 8606 isn't optional when you make non-deductible IRA contributions. It's the ONLY way to establish basis and prove to the IRS that you already paid tax on those dollars. Without it, their default assumption is that all conversions are fully taxable. Don't delay on this - the longer you wait, the more complex it gets. Find a CPA who actually understands retirement account rules and get this squared away. The process is straightforward once you know what needs to be done!

I've been through this exact same situation and want to echo what everyone else is saying - you absolutely need to file those missing 8606 forms ASAP, and yes, you'll almost certainly need to amend your 1040s given the blank 4a/4b lines. The consensus here is spot-on: file the missing 8606 forms first with "Filed pursuant to Section 301.9100-2" at the top for penalty relief, then follow up with 1040X amendments to properly report those conversions. The blank 4a/4b lines are a real red flag - the IRS matching system expects to see those 1099-R amounts reported even when the taxable portion is $0. I used the same timeline approach others mentioned: filed all my missing 8606s by mail first, waited about 6-8 weeks for processing, then submitted the 1040X amendments. The key is that the 8606 forms establish your basis, which then supports showing $0 taxable on line 4b of your amended returns. Your old preparer's advice was dangerously wrong. Form 8606 isn't optional - it's literally required by law for non-deductible IRA contributions and is the ONLY way to prove those were after-tax dollars. Without proper documentation, the IRS default assumption is that everything is taxable. The good news is this should be tax-neutral since you never took improper deductions. It's just paperwork cleanup, but critical paperwork that protects you from potential audit issues down the road. Don't delay - get those forms filed and find a CPA who actually understands retirement account rules!

Just wanted to add that if you're using TurboTax Online, the dependent question sometimes appears differently depending on which version you're using (Free, Deluxe, Premier, etc.). In the Free version, it's usually right after you enter your basic info, but in the paid versions it might be nested under "Tax Profile" or "Personal Information." Also, a helpful tip: once you check that you can be claimed as a dependent, TurboTax will automatically gray out certain sections that don't apply to you (like claiming your own exemption in older tax years). This is actually a good visual confirmation that the software recognized your dependent status correctly. One thing to watch out for - if you have any 1098-T forms from college, make sure you coordinate with your parents about who's claiming education credits. As a dependent, you generally can't claim them yourself even if the 1098-T has your name on it.

Great discussion everyone! I went through this exact same situation last year as a college student. Just wanted to add a few things that might help: 1. **Save your work frequently** - TurboTax can be glitchy and sometimes loses your progress, especially when navigating back and forth between sections like others mentioned. 2. **Double-check the "Review" section** - Even after you think you've set everything correctly, TurboTax's final review will show your filing status and dependent status. I always scroll through this to make sure it says something like "You are being claimed as a dependent" rather than showing you as an independent filer. 3. **Print or save a copy before submitting** - This saved me when the IRS had questions later. Having documentation of exactly how you filed (including the dependent checkbox) can be really helpful if there are any discrepancies. Also, don't stress too much about making a mistake - if you do file incorrectly, you can always file an amended return (Form 1040X). But obviously it's better to get it right the first time! The key is just making sure both you and your parents are consistent about your dependent status.

I've been using TurboTax with Robinhood for two years now and overall it's been pretty smooth. One thing I'd add to what others have said - make sure you wait until Robinhood releases their final 1099 before importing. They sometimes issue corrected versions in late February/early March if there were errors in dividend reporting or corporate actions. Also, if you're planning to itemize deductions, keep track of any margin interest you paid throughout the year. It's deductible as investment interest expense, but you'll need to enter it manually since the import doesn't always catch it. You can find this info in your Robinhood monthly statements. For a first-time filer with stock trades, TurboTax should handle your situation just fine. The key is to take your time reviewing everything after the import and don't rush through it. Good luck!

I've been using TurboTax with Robinhood for the past four years and can confirm it generally works well for most situations. A few additional tips from my experience: 1. **Timing matters** - Don't rush to file in January. Wait until at least mid-February to make sure you have the final version of your 1099. I learned this the hard way when I had to amend my return one year. 2. **Review wash sales carefully** - These can be confusing even after import. If you sold a stock at a loss and bought it back within 30 days, the loss gets deferred. TurboTax usually handles this correctly, but it's worth understanding what happened. 3. **Check your state taxes too** - Some states have different rules for capital gains, so make sure the import works correctly for your state return as well. 4. **Keep good records** - Even though TurboTax imports everything, I still keep screenshots of my Robinhood summary pages and download copies of all my 1099s. You never know when you might need them later. For someone with your level of trading activity, TurboTax should definitely be sufficient. The import feature has gotten much more reliable over the years. Just take your time with the review process and you should be fine!

I'm also going through this exact situation and this entire thread has been incredibly helpful! Filed my return about 3 weeks ago and just had that terrible realization that I completely forgot Form 8889. Like so many others here, all my HSA distributions were for qualified medical expenses (mainly physical therapy and some prescription costs), so there's absolutely no change to my tax liability. I was really panicking about this initially and was about to rush into filing an amended return, but reading through everyone's consistent real-world experiences has completely calmed my nerves. The pattern is remarkably clear across all these stories - when there's no actual tax impact, the IRS seems to handle this as a straightforward documentation issue rather than treating it like a serious compliance violation. I'm definitely following the game plan that everyone's outlined here: organizing all my HSA statements and medical receipts right now while everything is still accessible and fresh in my memory. Already pulled together my quarterly statements and I'm gathering up all the medical receipts from this past year. If I do get a CP2000 notice in several months, I'll be fully prepared to respond quickly with all the proper documentation they need. The peace of mind from hearing so many positive real-world outcomes is incredible. It's amazing how much this community knowledge helps when you're dealing with tax anxiety - so much better than trying to interpret confusing IRS publications on your own! Thanks to everyone who took the time to share their actual experiences.

I'm also dealing with this exact situation and this thread has been incredibly reassuring! Filed my return about 5 weeks ago and just realized I completely forgot to include Form 8889. Like everyone else here, all my HSA distributions were for qualified medical expenses (doctor visits and prescription medications), so there's no impact on my actual tax liability. I was really stressing about whether to file an amended return immediately, but after reading through all these real-world experiences, I'm convinced that the wait-and-see approach is the right choice. The consistent pattern across so many people's stories is remarkable - when there's no tax impact, the IRS clearly treats this as a documentation issue rather than a compliance violation. I'm following everyone's advice about organizing my HSA statements and medical receipts right now while everything is still easy to locate. Already gathered my quarterly HSA statements and I'm collecting all the medical receipts from this past year. If I do get a CP2000 notice in several months, I'll be prepared to respond quickly with all the proper documentation. The peace of mind from hearing so many positive real-world outcomes where people either got straightforward letters or no contact at all is exactly what I needed. Thanks to everyone who shared their actual experiences - this community knowledge is so much more valuable than trying to decipher IRS guidance alone when you're anxious about tax mistakes!