Has anyone figured out if wash sale rules apply differently between the reported and unreported basis sections? I day trade sometimes and have positions that fall into both categories depending on when I first bought in.

This is such a helpful thread! I've been dealing with this exact issue and was getting so frustrated trying to understand why my brokerage statements looked different from what they were sending to the IRS. One thing I'd add is that if you have dividend reinvestment plans (DRIPs), those can create additional complications in the unreported basis section. I had shares that I bought directly through a company's DRIP program back in 2009, and when I transferred them to my current broker, they ended up in the "not reported to IRS" section even though my broker could see all the purchase history. The key thing I learned is to keep meticulous records of EVERYTHING - not just your original purchase confirmations, but also all dividend reinvestment transactions, stock splits, spinoffs, and any corporate actions. These events can significantly affect your cost basis, and if your broker isn't reporting the basis to the IRS, you need to be able to prove your calculations if questioned. I've started using a simple spreadsheet to track all my transactions across different brokerages and account types. It's been a lifesaver for reconciling these split 1099-B forms at tax time.

Thank you all for sharing your experiences with FIRPTA delays - this thread has been incredibly helpful! I'm now at the 7-week mark since submitting my 8288-B, so still within the official 90-day window but clearly that doesn't mean much based on everyone's actual timelines. A few follow-up questions based on what I've learned here: 1. For those who received interest payments, did the IRS send any advance notice about the interest calculation, or does it just show up with the refund check? 2. Has anyone tried both the congressional inquiry route AND one of the callback services mentioned? I'm wondering if combining approaches might be more effective. 3. @Raul Neal - as an attorney handling these cases, have you noticed any patterns in terms of which applications get processed faster? For example, does the dollar amount of withholding seem to matter, or certain types of properties? I'm trying to decide whether to be proactive now or wait closer to the 6-month mark before taking additional steps. Given that I potentially have $75K+ tied up for many months, the interest will help but I'd obviously prefer to have access to my money sooner rather than later.

I wanted to add some additional context about FIRPTA interest calculations that might be helpful for everyone dealing with these delays. I work in tax compliance and have processed quite a few of these cases. The interest rate is actually updated quarterly by the IRS and published in Revenue Rulings. For 2024, the rates have ranged from about 7% to 8% depending on the quarter. The calculation is done on a daily compounding basis, which means the longer the delay, the more significant the interest becomes. One thing I haven't seen mentioned here is that if you end up owing additional tax when you file your return (beyond what was withheld), the IRS will also charge you interest on any underpayment. So while they pay you interest for delays in processing your withholding certificate, they'll also charge interest if you didn't have enough withheld initially. Also, regarding the 45-day rule mentioned earlier - this applies specifically to refunds of overwithholding after a withholding certificate is approved. If your certificate is denied or if you don't apply for one, different interest rules apply. The key is making sure your 8288-B application is as complete and accurate as possible from the start to avoid the documentation reset issues others have mentioned. For anyone still waiting, keep detailed records of all correspondence and submission dates. You'll need these to verify the interest calculation when your refund finally arrives.

Wait, I'm confused about something basic. If I'm day trading in my regular brokerage account (not IRA), aren't all my trades already "realized" at the time I sell anyway? What's the advantage of MTM if I'm already selling everything within the same tax year?

One critical point that often gets overlooked is the timing of the MTM election. You must make this election by the due date (including extensions) of the tax return for the year PRECEDING the year you want it to take effect. So if you want MTM treatment for 2025, you needed to make the election by the due date of your 2024 return (typically April 15, 2025, or October 15 with extension). You can't wait until you see how your 2025 trading goes and then decide - the election must be prospective. There's a limited exception for new traders who can make the election by the due date of the return for the first year they qualify as a trader, but this requires careful documentation that you weren't previously engaged in trading activities. Also worth noting: the MTM election only applies to securities held in connection with your trading business. If you hold some positions as investments (not for trading), those can still receive capital gains treatment, but you need clear documentation distinguishing between your trading inventory and investment holdings from the time of acquisition. The business expense deductions under trader status are substantial but require meticulous record-keeping since the IRS frequently audits trader status claims.

I'm going through the exact same thing right now! My transcript shows code 846 with a deposit date from last week, TurboTax says "refund arrived" but my bank account is still showing nothing. I was getting really worried that something went wrong with my direct deposit info or that there was some kind of issue with my return. Reading through all these comments has been such a relief - sounds like this delay between the IRS date and when banks actually post the funds is totally normal. I had no idea that weekends don't count for processing and that banks can hold ACH transfers for a few days. Definitely going to stop obsessively checking my account every few hours and just wait it out until the end of the week. Thanks everyone for sharing your experiences - makes me feel way less crazy about this whole situation!

This is actually super common and happened to me twice in the past few years! TurboTax basically just reads your IRS transcript and updates their status based on the 846 code date, but that doesn't mean the money has actually hit your bank yet. Banks typically take 1-3 business days to process ACH deposits from the IRS, and since your transcript shows 9/14 and today is 9/17, you're right in that normal processing window. The fact that it went through a weekend probably added to the delay since most banks don't process these transfers on weekends. I'd give it until Thursday or Friday before getting concerned. If it still hasn't shown up by then, definitely call your bank first to make sure they're not holding it for any reason - sometimes they flag larger refunds for fraud review. The IRS phone number someone mentioned earlier is also helpful if your bank says they haven't received anything. Hang in there, it's probably just taking its normal sweet time to process!

I'm going through this exact same situation right now and I can't express how much this thread has helped calm my nerves! I accidentally submitted a W9 instead of W8-BEN while working remotely from Sweden for a US fintech company after my J-1 visa expired about 6 months ago. The panic when I realized my mistake last week was overwhelming - I was convinced I'd face massive penalties or somehow jeopardize my ability to visit the US in the future. But reading through everyone's detailed experiences here has shown me this is not only fixable but apparently quite common! I immediately contacted my employer and submitted a corrected W8-BEN with an explanation letter. They were very understanding and said they'd update their records. Now I'm gathering all my documentation (passport stamps, Swedish lease agreement, bank statements) to file my 1040NR. The information about the US-Sweden tax treaty has been eye-opening - I had no idea there were potential benefits that could actually work in my favor here. I'm researching Article 7 provisions now and it looks like this could significantly reduce what I thought I'd owe. For anyone else going through this, the consistent timeline of 6-8 weeks for processing that people have shared is really helpful for setting expectations. And knowing that multiple people have had zero immigration consequences afterward is such a relief. Thank you to everyone who took the time to share their detailed experiences - this community support has transformed what felt like a crisis into a manageable process with a clear path forward!

I'm currently dealing with this exact same situation and this thread has been an absolute lifesaver! I accidentally submitted a W9 instead of W8-BEN while working remotely from Italy for a US marketing agency after my F-1 OPT expired about 4 months ago. The relief I felt reading through everyone's experiences is indescribable - I've been losing sleep over this mistake for the past two weeks since I discovered it. It's amazing how this seems to be such a common error, yet there's not much clear guidance out there when you're frantically searching for solutions. I've already submitted my corrected W8-BEN to my employer (they were very understanding, as others have mentioned), and I'm now working on gathering all my documentation for the 1040NR filing. The information about tax treaties has been particularly valuable - I had no idea the US-Italy tax treaty could actually work in my favor here. One thing I'm curious about that I haven't seen mentioned much: has anyone dealt with this situation where they had some income while physically in the US (before leaving) and some while abroad in the same tax year? I worked for about 2 months in the US before moving to Italy, so I'm trying to figure out how to properly allocate the income on my return. Also, for those who used professional services, did you find it worth the cost, or were you able to handle everything successfully on your own with the information available online? Thank you all for sharing such detailed experiences - this community has made what felt like an impossible situation feel completely manageable!