I went through something very similar when my father passed in 2021. The key thing that helped me was understanding that the IRS has different rules for deceased taxpayers, especially when notices were sent after death. First, definitely file those 2020 and 2021 returns immediately, even if you're past the 3-year window. Include Form 1310 with each return and a detailed cover letter explaining that your father died in November 2022 and you only recently discovered these unfiled returns during estate administration. For the interest abatement, file Form 843 specifically citing IRC 6404(e)(1) - reasonable cause due to death. The IRS often grants these when they can verify notices were sent to a deceased person's address. Most importantly, request that any refunds from 2020/2021 be applied directly to the 2019 balance rather than issued as checks. Even if the refunds are technically "expired," the IRS can often still use them to offset other tax debts when there are special circumstances like death. I also recommend calling the Practitioner Priority Service line if you have a POA on file - they're more equipped to handle complex estate situations than the regular customer service lines. Document everything in writing and keep copies of all correspondence. The process took about 6 months in my case, but we ultimately got the balances resolved and most of the interest abated. Don't let them tell you there's nothing that can be done - deceased taxpayer cases have more flexibility than they initially let on.

I've been following this thread as someone who went through a remarkably similar situation with my mother's estate in 2023. What really struck me about your case is how the IRS seemed to dismiss your options during those appointments - this is unfortunately common, but there are definitely more avenues to explore than they indicated. One thing I haven't seen mentioned yet is the "equitable relief" provision under IRC 6015(f). While this is typically used for innocent spouse cases, it can sometimes apply to deceased taxpayer situations where there were systemic issues with notice delivery. In your case, the fact that the November 2022 notice about additional 2019 income was sent to someone who had already died that month could be grounds for equitable relief from the resulting penalties and interest. Also, when you file those 2020 and 2021 returns, make sure to include a statement invoking the "Servicewide Hardship" provisions. The IRS has internal guidance (found in the Internal Revenue Manual) that gives them discretion to waive normal statute limitations when collection actions would create undue hardship for an estate, especially when the estate lacks sufficient assets to pay the debt but has legitimate refund claims that could offset it. I'd strongly recommend requesting a meeting with a Revenue Officer rather than just working with customer service representatives. They have more authority to make decisions about your specific case and can often authorize exceptions that regular agents cannot. You can request this through your local Taxpayer Assistance Center. The key is to frame this not just as "please give us expired refunds" but as "please properly account for all tax years and apply available credits to resolve the overall tax situation for this deceased taxpayer's estate." The IRS has much more flexibility in these situations than they initially indicate.

Another option - file a complaint with your state's consumer protection agency. I did this when my preparer messed up my home office deduction and it was pretty effective. They contacted the preparer and suddenly they were willing to cover the penalties I had to pay. Also keep all your documentation showing you provided them with the missing 1099! That's your proof they had access to everything they needed to file correctly.

I went through something very similar last year and it was incredibly frustrating. One thing that helped me was documenting everything - save all your original documents, correspondence with the preparer, and the IRS notice. This creates a clear timeline showing their error. You mentioned they want to charge you another fee to fix their mistake - that's a huge red flag. A reputable preparer should fix their own errors for free. I'd definitely recommend filing complaints with both the IRS (Form 14157) and your state's consumer protection agency. Also, for future reference, always ask preparers about their errors and omissions insurance before hiring them. Good preparers carry this specifically to cover situations like yours. And consider getting a second opinion on complex returns - even a basic review by another professional can catch mistakes before filing. The "client is ultimately responsible" line is technically true, but it doesn't absolve them of professional negligence when they fail to include documents you provided. Keep pushing back and don't let them off the hook for their oversight.

Great question and glad you're planning ahead! Just wanted to emphasize what others have said - you're absolutely correct that you can e-file your 1040 and separately mail your Form 709. I did this exact thing two years ago when I helped my daughter with a house down payment. One additional tip that might help: when you're using your tax software to prepare your 1040, it might ask if you filed or need to file any other forms. You can indicate that you filed Form 709 separately, but this won't affect your ability to e-file the 1040. The software is just gathering information for completeness. Also, keep copies of both your e-filed 1040 confirmation and your mailed Form 709 (including certified mail receipt if you choose to send it that way) for your records. The IRS processes these independently, so having clear documentation of both filings can be helpful if any questions come up later.

This is such a timely question! I just went through this exact situation a few months ago when I gave my nephew $25,000 for his wedding expenses. I was worried I'd have to mail everything together, but I'm happy to confirm that you can absolutely e-file your 1040 as usual and mail the Form 709 separately. One thing I wish I had known earlier is that you should prepare both forms around the same time even though you're filing them separately. This helps ensure consistency in how you report things like your personal information and makes sure you don't forget about the Form 709 deadline while focusing on getting your regular return filed early. Also, don't stress too much about the gift tax implications - unless you've already used up a significant portion of your lifetime exemption from previous large gifts, you likely won't owe any actual gift tax. The Form 709 is mainly just a reporting requirement to track the reduction in your lifetime exemption. Good luck with your filing!

I went through this same frustration last year with my small partnership. After trying several options, I ended up going with FreeTaxUSA for around $60. What I liked about it was that it walked me through each section step-by-step and caught a few things I would have missed if I'd tried to do it manually. One thing to consider - if your partnership is really straightforward with just basic income and standard deductions, you might want to check if your state has any free business filing programs. Some states offer free e-filing for small partnerships even when the federal doesn't. It's worth a quick search on your state's tax website. Also, don't forget that the partnership filing fee is a deductible business expense, so factor that into your actual cost calculation. The $50-80 range for software isn't too bad when you consider the time savings and reduced error risk compared to paper filing.

Another option worth considering is TaxSlayer Business - they typically charge around $47 for 1065 filing and K-1 generation. I used them for my small consulting partnership last year and found their interface pretty intuitive for basic returns. One thing that helped me save even more was timing - if you can wait until later in the filing season (like March), many of these services run promotions. TaxAct dropped their price to $35 during a spring promotion, and FreeTaxUSA had a similar deal. Also, since you mentioned you're a simple two-person partnership, make sure you're not overcomplicating things. If you don't have rental properties, multiple business activities, or complex allocations, even the basic versions of these programs should handle everything you need. Sometimes people pay for premium features they don't actually require.

Does anyone know if you need to file Form 8938 (Foreign Financial Assets) for PTPs like UCO? My accountant is saying that because some of the underlying assets in the partnership might be foreign, I might have an FBAR obligation, but that doesn't sound right to me.

I went through this exact same situation with UCO! The key thing to understand is that you're NOT getting double-taxed, but the reporting can definitely be confusing. Here's what's happening: The Schedule K-1 shows your share of the partnership's income/loss for the year, which you must report regardless of whether you sold shares. When you do sell, you need to adjust your cost basis by adding all the K-1 income you've already paid taxes on (and subtracting any distributions received). For your 2022 sale, you'll report both the K-1 income AND the sale on Schedule D/Form 8949, but use your adjusted basis. So if you bought UCO at $20/share, had $5 of K-1 income over the years, and received $2 in distributions, your adjusted basis would be $23/share ($20 + $5 - $2). Make sure to keep all your K-1s from previous years - you'll need them to calculate the proper adjusted basis. The "higher revenue" on your K-1s compared to your brokerage gains is normal because K-1s show the partnership's actual business income, not just price appreciation.