Im confused about how to handle the divorce payment. If the client doesn't receive that money, why does it affect their taxes? Doesn't the ex get their own tax form?

I've handled several OPM annuity situations like this, and the key is understanding that the Simplified Method calculation was locked in when your client first retired. The $74,356 in Box 9b represents their lifetime contributions, but you can't just compare it to this year's distribution to determine taxability. When they first started receiving payments, a monthly exclusion amount was calculated based on their age and life expectancy at retirement. This same dollar amount is excluded from taxes each month until they've recovered their full $74,356 in contributions. After that, everything becomes taxable. Regarding the divorce payment - this is tricky. Your client's form shows the gross amount before the $14,530.80 payment to the ex-spouse, but for the Simplified Method calculation, you still use the full gross amount. The ex-spouse should receive their own 1099-R for the portion they received and will report that income separately. To get the correct calculation, you really need to find either the original Simplified Method worksheet from when payments began, or get the client's retirement date and age to recalculate it. The fact that the previous CPA showed most of the distribution as taxable suggests they were correctly applying an established exclusion amount that's much smaller than what you might expect.

Had the exact same issue yesterday! The IRS website has been super glitchy lately. What finally worked for me was using a VPN and switching my location to a different state - somehow that bypassed whatever server issues they're having. Also make sure you're using Chrome or Firefox, heard Safari has been having compatibility problems with their site updates.

Ugh, this is so annoying! I've been having the same problem since Tuesday. The site keeps timing out or giving me that "unavailable" message. Really need to check my transcript before filing. Has anyone tried calling the IRS directly to get transcript info over the phone? Wondering if that's faster than waiting for the website to work properly again 😩

I went through this exact situation last year when we changed from "Pacific Northwest Logistics" to "PNW Supply Chain Solutions" across 15 states. Here's what I learned the hard way: First, regarding your grace period question - you're generally safe to continue filing under your old name for 60-90 days while updates are processing, but I'd strongly recommend getting confirmation from the IRS first that your name change is recorded in their system. This becomes your "proof" if any state agencies question the discrepancy. For the multi-state nightmare, here's my streamlined approach: Start with IRS Form 8822-B, then tackle states in order of your largest tax liabilities first. Many states have reciprocal agreements where updating one agency automatically updates others within that state. Also, don't forget about workers' compensation carriers and local business license authorities - these often get overlooked. One critical tip: Create a master timeline showing when each jurisdiction's quarterly filings are due, so you can prioritize updates based on upcoming deadlines. Nothing worse than having a name mismatch right before a major filing deadline. The whole process took me about 3 months to complete fully, but the key is staying organized and tackling the biggest impact items first. You've got this!

Just went through this process myself with our company name change from "Mountain View Technologies" to "Summit Tech Group" and wanted to share a few additional considerations that haven't been mentioned yet. One thing that caught me off guard was the impact on our direct deposit authorizations with employees. Even though the bank account information stayed the same, several banks flagged the name change and temporarily held up payroll deposits until we provided updated authorization forms. I'd recommend giving your bank a heads up about the name change at least 2 weeks before your next payroll run. Also, don't forget about your state disability insurance and paid family leave programs if you operate in states that have them (CA, NY, NJ, RI, HI). These often require separate notifications beyond the standard unemployment and tax updates. For tracking everything, I created a simple shared Google Sheet with columns for jurisdiction, agency, form required, submission date, confirmation number, and status. This helped me stay organized across 28 different updates and made it easy to follow up on any that were taking longer than expected. The whole process was definitely overwhelming at first, but breaking it down systematically made it manageable. Start with the IRS confirmation as others have suggested - that becomes your foundation for all the other updates.

As someone new to this community, I'm really grateful for all the comprehensive advice everyone has shared here! This thread has been incredibly educational - I had no idea that sales tax overcharging was such a widespread issue or that there were so many practical resources available to help document and report these situations. The manager's dismissive "shop somewhere else" attitude instead of immediately investigating a potential tax calculation error is definitely the biggest red flag in your situation. Any legitimate business owner would be concerned and grateful to learn they might be overcharging customers, not defensive about it. That response alone suggests this could be intentional rather than an honest system mistake. What really opened my eyes is understanding the community-wide impact of this behavior. When you consider that systematic overcharging of even a few percentage points across hundreds of customers over months or years can add up to thousands of dollars stolen from hardworking families, it becomes clear why reporting this is so crucial for protecting everyone in the neighborhood. Based on all the excellent guidance here - especially the official insight from someone who actually works at the Department of Revenue about 30-45 day investigation timelines, the practical documentation strategies, and the various online tools for verification - you have a really strong foundation for filing an effective complaint. Thank you for speaking up about this issue and refusing to be intimidated. This is exactly the kind of consumer protection advocacy that benefits entire communities!

This is such an important discussion! As someone new to this community, I'm amazed by how much practical knowledge everyone has shared about dealing with tax overcharging issues. The step-by-step documentation strategies, reporting resources, and real-world experiences people have contributed make what initially seemed like a daunting situation much more manageable. What really stands out to me is how the manager's dismissive "shop somewhere else" response is such a clear indication that this needs to be escalated to authorities. Any legitimate business would be grateful to learn about a potential tax calculation error and would immediately work to investigate and fix it. That defensive attitude suggests they either don't understand their legal obligations or simply don't care about overcharging customers. The community impact aspect that several people have highlighted is eye-opening too. When you think about systematic overcharging of 5-6 percentage points across hundreds of customers over months or years, that adds up to substantial theft from working families who probably don't even realize what's happening. Based on all the excellent advice here - especially the official guidance about 30-45 day investigation timelines and the various documentation and reporting strategies - it sounds like you have everything you need to file a strong complaint. Thank you for refusing to be intimidated and for speaking up to protect your entire community from this predatory behavior!

This is a really common confusion for new independent contractors! You're absolutely right to question it, but here's the deal: when you're self-employed (which is what a 1099 means), ALL payments from your client - including reimbursements - get reported as income on the 1099. This might seem unfair, but it actually works in your favor. Here's why: You get to deduct your actual business mileage on Schedule C at the IRS standard rate (67 cents per mile for 2024). So if you drove 18,000 business miles, that's a $12,060 deduction! Since your reimbursement was only $10,800, you'll actually get to deduct MORE than what was included in your income. Don't ask for a corrected 1099 - that's not how it works for contractors. Just report the full income amount and then claim your mileage deduction. Make sure you have good records of your business trips (dates, destinations, business purpose, and mileage). A simple mileage log or phone app works fine. The key is understanding that as a contractor, you report ALL income and then deduct ALL legitimate business expenses. In your case, this should actually reduce your tax bill compared to what you're expecting!

Great thread everyone! As someone who's been doing contract work for a few years, I want to emphasize something that might not be obvious to newcomers: keep your mileage log updated throughout the year, not just at tax time. I learned this the hard way my first year when I tried to reconstruct 12 months of business driving from memory and old calendar entries. Now I use a simple smartphone app that tracks my trips automatically, but even a basic notebook works fine as long as you're consistent. Also, don't forget that your business mileage includes trips to pick up supplies, meet clients, travel between job sites, and even trips to the bank to deposit checks or the post office to mail invoices. It all adds up! The key is that it has to be for business purposes - your regular commute to a main office location doesn't count, but travel between different client locations during the day does. One last tip: if you're driving a lot for work like the OP, consider setting aside money quarterly for estimated taxes. That 1099 income without withholding can create a big tax bill in April, but the mileage deduction will definitely help reduce what you owe.